Bob Iger gave up the chief executive’s job at Disney on Tuesday, 25 February 2020, and the change took effect at once. Disney announced it in a press release, and it caught the media industry off guard.
Bob Chapek, who ran Disney’s Parks, Experiences and Products division, takes the CEO post. Iger stays on as executive chairman through December 2021 and keeps directing the company’s content creation. NBC News called that arguably the most important role at Disney. At least half a dozen of Iger’s current and former deputies had wanted the top job, according to NBC.
“Not accelerated by any particular reason”
On a call with investors, Iger said the switch lets him concentrate on the creative side, something he could not do as CEO. The timing, he said, was “not accelerated by any particular reason.” The board had viewed Chapek as his successor for some time, and moving now gives the two men more time to work together before 2021.
Iger put it in terms of two questions: how best to run the company as it stands, and how best to handle succession. Acting now, he said, gave the best result.
In his statement, Iger cited “the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway”. He said he had “the utmost confidence in Bob” and expected to work closely with him over the next 22 months.
The surprise was partial. At Disney’s investor conference the year before, Iger had said “2021 will be the time for me to finally step down.” Rolling Stone noted that he had pushed back his retirement several times.
Chapek said he was “incredibly honored and humbled” to lead what he called “the greatest company in the world”. He also credited Iger with building Disney into the most admired and successful media and entertainment company, and said he had enjoyed “a front-row seat” on the leadership team.
The Iger years
Iger became president and chief operating officer in 2000 and CEO in 2005, taking over from Michael Eisner. Eisner’s tenure ended after a shareholder revolt led by Roy E. Disney, nephew of Walt Disney. Iger turned 69 that month.
He led Disney’s purchases of Pixar, Marvel Entertainment, Lucasfilm and 21st Century Fox. The Fox deal was valued at $71.3 billion by Rolling Stone, and NBC News gave its announced value as $52.4 billion for Fox’s entertainment business. Disney gained Fox’s film studios and TV networks, plus majority ownership of Hulu. Since Disney bought Marvel in 2009, nine Marvel Studios films have grossed more than $1 billion worldwide, among them Avengers: Endgame, now the all-time box office leader. Four of the five Star Wars films Disney has released also passed $1 billion.
Disney shares fell about 2.7 percent in after-hours trading. The news was at least a short-term setback for Kevin Mayer, head of the streaming business and a widely mentioned successor. NBC reported speculation that Mayer could still reach the top job if Disney’s direct-to-consumer operations, which include Disney+, ESPN+ and Hulu, succeed.
Sources
- Bob Iger, who took Disney to new heights, steps down as CEO
- Bob Iger Steps Down as Disney CEO, Bob Chapek Takes Over
