A day later The shocking announcement of Bob Iger’s return to Disneyand the resulting ouster of his successor-turned-predecessor Bob Chapek, has a stunned Hollywood reeling from what the move will mean for the entertainment behemoth’s short- and long-term future.
But while there is no shortage of questions being asked, two things are certain. At first, investors are thrilled to once again rule his magic kingdom. Disney shares ended Monday up more than 6 percent on a day when the Dow Jones was slightly lower. Second, Iger is moving quickly — not even waiting a full 24 hours to announce major changes — to pull off the company’s choppy restructuring.
The speed at which Iger is hurting is especially notable because Disney’s board decided on Friday for Iger to return to the troubled company. “It literally started on Friday and ended on Sunday,” a person with knowledge of the matter told CNN, adding that Iger “felt an obligation to go back because he really cared about the company. does.”
Now he’s already calling the big plays.
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In a Monday evening memo sent to employees of Disney Media and Entertainment Distribution, a key entity of the company created by Chapek that disappointed some creators, Iger announced that Karim Daniel, head of the division and Chapek Allies of, “Leaving the company.”
Iger also announced that the entertainment giant will undergo a major overhaul with him back at the helm. “In the coming weeks, we will begin implementing organizational and operating changes within the company,” Iger wrote to employees. “I intend to restructure things in a way that respects and honors creativity as who we are.”
Iger added that he asked Dana Walden, Ellen Bergman, Jimmy Pittaro, and Christine McCarthy to “work together on the design of a new structure that would put more decision-making back into the hands of our creative teams and reduce costs.” Make it reasonable.” “The goal is to have the new structure in place in the coming months,” Egger said.
Outside of Iger’s Chapek restructuring, Disney chiefs can also unpack another major Chapek decision that’s only weeks away from taking effect: raising Disney+ prices. Iger launched Disney+ for just $6.99 a month and as CNBC’s Alex Sherman Reported, its strategy was to “raise prices gradually over time”. However, Chapek abandoned that approach earlier this year when it raised the price to $10.99 a month.
Looking further into the future, big questions abound: What will Disney look like when Iger’s two-year contract is up? How will Iger position and reshape the company for the digital age? Could he make a move to shed the ABC and broadcast division? Or maybe make a mega deal to eat a company like Netflix? Or will Disney itself be eaten by a giant tech giant like Apple?
A source at a top talent agency pointed out that the biggest question Iger has to answer is how he “tops his final run as CEO.”
“The world is a much more complex place than it was a few years ago and it will be difficult to live up to the reputation he has built as the strongest media CEO of all time,” the source said. “And he’ll have a short runway to please Wall Street, his staff, creative partners, and audiences.”
“So much to top it off.”