Disney kicks Bob Chapek out and brings Bob Iger back as head of the company

Earthquake at the Walt Disney Company. The company has decided to remove Bob Chapek as CEO of the company just over two years after his promotion to the top job of mouse house manager. Two not easy years for him, having to keep the company afloat during the pandemic, but he also had several major controversies in that short period of time which already questioned his continuity as leader. The nail in the coffin was the latest meeting with investors, where they announced lower-than-expected quarterly results and projected higher losses on streaming spending next year.. Disney shares fell to their worst value in more than two years.

The entertainment giant has decided to make a drastic and quite unexpected decision: bring back Bob Iger to replace him immediately. Iger was the previous CEO of the company, starting his “tenure” in March 2005. Iger enjoys an excellent reputation inside and outside the company, and is credited with the power he has achieved as a force unstoppable in the audiovisual industry. He was behind the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox, and the great promoter of Disney +. With it, the theme parks also expanded with the opening of new locations in Hong Kong and Shanghai.

Iger struggled to find a successor when he decided he would step down as CEO in 2020, ultimately selecting his namesake, who was director of Parks, Experiences and Products within the company at the time. As the coronavirus crisis hit, he decided to postpone his retirement until 2021 to help Chapek weather the storm. He retired in December of last year and just under a year later he returns to his old place “with an incredible sense of gratitude and humility, and I must admit a little disbelief”, according to what he says in the email he sent to employees. His new contract will be extended by two years, and once again one of his tasks will be to find a successor who can lead Disney in the coming years.

“We thank Bob Chapek for his service to Disney throughout his long career, including guiding the company through the unprecedented challenges of the pandemic. The board concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is the only one willing to lead the company through this key period.” reads the company’s official statement, in the only mention they make of the former executive, as well as stating that he has resigned from his post. Iger once again emphasizes his “extreme optimism” for this new stage, which will focus on “Creative excellence to inspire generations through heartfelt and unmatched storytelling”. Thanks employees “everything you do. Disney has a special place in the hearts of people around the world because of you”. And even if she knows it “this company has asked a lot of them in the last three years”he claims that the employees have always shown him that they are capable of it “to achieve the impossible”.

The news is undoubtedly the talk of Hollywood. Twitter was filled with messages of joy and support for Iger in his new stage at the head of the mouse house. Josh Gad wrote: “I don’t think I could be happier. Welcome back, Bob Iger. The greatest is back.”. ‘Amphibilandia’ creator Matt Braly celebrated Bob Chapek’s march: “I can’t tell you how happy the entire animation industry is to see this man go”. Netflix co-CEO Reed Hastings regrets Iger’s decision because he expected him to run in the US presidential election. “It’s incredible” he compliments his rival.

The Bob Chapek controversy

As we said at the outset, Bob Chapek was able to deliver at a time when one of Disney’s biggest sources of revenue, the parks, was shut down. But in his short career as CEO he has had several problems that he has not been able to handle as he should. One was the crisis with Scarlett Johansson over the simultaneous release of ‘Black Widow’ in theaters and streaming. The actress criticized her current contract, which only reflected box office profits, and Disney countered with a statement that disclosed Johansson’s salary and essentially called her selfish. She sued them, and although they settled before going to court, the company’s reputation was badly damaged. This year ended up angering both Florida Governor Ron DeSantis and his LGTBQ+ employees over the bill known as “Don’t Say Gay”. Employees have demonstrated against The Walt Disney Company for failing to take a stand and even giving money to openly homophobic politicians. Chapek ended up speaking, belatedly and badly enough, talking about supporting the stories in which we are all represented and agreeing, for example, to include a kiss between two women again in “Lightyear” despite forcing them to delete it in time of him. He also halted all political donations until he assessed who they were going to and whether they agreed with the company’s ideas. This angered DeSantis, who was highly critical of Disney’s “progressive drift,” by removing some privileges Disney had in Florida, where they have their largest theme park, Disney World. Iger doesn’t mention Chapek in his email or official statement, which came as no surprise because it has been said that the relationship between the two Bobs hasn’t been good since one succeeded the other.

We’ll see what decisions Iger makes to refocus the company in the coming months, but shares of The Walt Disney Company jumped 8% shortly after the news broke. Walt Disney may have been an urban legend, but at this rate the company will seriously consider freezing Bob Iger to wake him up whenever there’s a crisis.