In face of OTTs dismal profits, Bob Iger reinstated as Disney CEO

Bob Iger, the former CEO of Walt Disney Co., is unexpectedly rejoining the media giant as CEO less than a year after his retirement. This comes as the entertainment corporation battles to make its streaming TV services a successful entity.

Iger, who stepped down as CEO last year after 15 years in that position, has decided to continue in that role for another two years, Disney announced in a statement late on Sunday i.e., 20th November. Bob Chapek, who became CEO of Disney in February 2020, will be replaced by him.

Sources claim that Disney upset stakeholders this month with financial results that revealed ongoing losses at its media streaming unit despite Chapek steering the business through the COVID-19 outbreak.

The statement from Susan Arnold, chair of Disneys board, stated that the Board has established that as Disney encroaches on an extremely challenging phase of industry upheaval, Bob Iger is particularly equipped to oversee the company through this critical phase.

Interestingly, Disneys board unanimously agreed to renew Chapeks contract for an additional three years in June. However, the corporation was accused of standing silent over Florida legislative changes that would have curtailed classroom chat of gender identity and sexual orientation during Chapeks brief tenure, which led to an internal culture conflict.

As Disney spearheaded the entertainment sector's fight against Netflix in the streaming wars, Iger left the firm on a good note. Now the business aims for significant cost reductions, as the economic downturn and high lending rates have severely impacted Disney+.

Iger wrote in a memo to staff members stating that he was optimistic for this whole operation because what he learned during his many years at Disney was that especially in the face of ambiguity, the employees and cast members do the unimaginable.

It is worth mentioning that the employees were surprised by the leadership transition, according to a corporate source.

Source credit:

https://www.reuters.com/business/media-telecom/bob-iger-returning-disney-ceo-2022-11-21/