Bob Iger steps down effective immediately!

[KeithS]

Breaking news this morning - Bob Iger has stepped down as CEO of Disney, effective immediately.

He will be replaced by Bob Chapek who is generally disliked by the Disney fans especially those fans who like the Parks as he is seen as a penny-pincher.  Shares dropped 2.5% in immediate after hours trading on the news.

This is a developing story, so we will hear a lot more about this in the coming days - but I guess Bob Iger is leaving on a high with a massive legacy of growth and improvement to the Disney brand, having made peace with Pixar through their acquisition, getting hold of Marvel, Lucasfilm and 20th Century Fox, and launching Disney+ and expanding the theme parks including opening Shanghai.

We may never see another period of company growth like that!  I guess well should all be thankful for Mr Iger's tenure and wish him well
https://www.cnbc.com/2020/02/25/disney-names-bob-chapek-next-ceo.html

[ajp]

I hope he doesn't start to cut costs, last time that happened it wasn't pretty for the company.  Hopefully he continues on the path of Iger.

[KeithS]

That seems to be what people on other websites are worried about.  He's had a habit of cutting costs in the parks such as the live entertainment offerings, whilst at the same time increasing ticket prices.  I understand the ticketing increases given the amount of new infrastructure they've been adding around the world.  I'm sure they are worried about the Shanghai and Hong Kong closures though - there seems no end to that in sight and I was wondering if Bob Iger just didn't want to go on with that problem - leave it to someone new so that it doesn't tarnish his own reputation...

[ajp]

Iger did announce his intention to step away though and it would be a matter of finding his replacement.  I don't think that much is a surprise.  There is probably more to it though, as you allude to.  There are many people online who aren't overjoyed with the news.

[KeithS]

I was looking back through old forum posts on other websites for when Iger was announced, and it was the same gloom then.  Back then, people were happy that Eisner was out, but they though Iger was just an Eisner mini-me...and how wrong were we!  Iger steps out of Eisner's shadow with some big ideas of his own that completely transformed the company.  His focus on embracing technology rather than being scared of it was brilliant.  If you get a chance to read Bob Iger's book, do it, as it is really interesting - it needs another chapter now though so we can get the story behind this week's announcement

I should also point out their share price though so you can see what the market thinks of this.

Last Thursday, the share price (DIS) opened at $141.41
At close of business in New York on Wednesday (this Thursday morning our time) it is at $123.36 - a 13% drop in four working days...(and it is actually more than that as shares are now at $123.00 in after hours trading in the US.)

[ajp]

Last Thursday, the share price (DIS) opened at $141.41
At close of business in New York on Wednesday (this Thursday morning our time) it is at $123.36 - a 13% drop in four working days...(and it is actually more than that as shares are now at $123.00 in after hours trading in the US.)

I did see that DIS shares dropped on the announcement, but there would be an element of that drop contributed to the Corona Virus impact on global markets and on Disney specifically with park closures.

[DisneyKaren]

I was surprised to see this so soon, however what an amazing impact he's had - he's certainly due for a long relaxing holiday by now.  

Chapek is coming in at a really tough time.  Paris may be next to close based on previous pattern.  I'm sure they're already working on plans for the US parks if it does come to closing them down the track.  My thought would be the share prices are doing well considering the impact of COVID-19.  Disney's investment diversity is certainly a strength at times like this.

[KeithS]

We were talking at work this morning and maybe Chapek is the right person at times like this.  Disney is definitely going to feel the pinch from COVID-19 and needs a business person at the helm who can steer them through austerity.  We all know Bob Iger was a big spender - maybe they recognise that isn't the correct strategy when things are tough...

[calisota]

I just posted a news story about how, despite the closure of the other parks, American parks are showing no signs of slowing down. Of course America does seem to be in a state of denial as to the seriousness of the whole virus situation.


Greg

[DisneyKaren]

We were talking at work this morning and maybe Chapek is the right person at times like this.  Disney is definitely going to feel the pinch from COVID-19 and needs a business person at the helm who can steer them through austerity.  We all know Bob Iger was a big spender - maybe they recognise that isn't the correct strategy when things are tough...

I want to work where you do!  I'm not sure how many of my colleagues even know who they are!  Once colleague did watch Frozen 2 on her way back from Melbourne though.
Good luck to Bob Chapek, a lot of eyes will be on him as Disney comes out the other side of COVID-19.  I'm sure he and all senior managers are very busy with business plans right now.
Greg - only Tuesday you posted that USA seemed to be in denial, how quickly that changed.  Thankfully, as the countries who didn't do enough fast enough are sadly paying the price.  I feel Japan has led the way in quick action.

[calisota]

Greg - only Tuesday you posted that USA seemed to be in denial, how quickly that changed.  Thankfully, as the countries who didn't do enough fast enough are sadly paying the price.  I feel Japan has led the way in quick action.

Yep, Japan and South Korea seemed to react really well. News this morning is that New Zealand is closing the borders...my Kiwi may get me access to the only safe country in the world.

Greg

[DisneyKaren]

Keith you mentioned there were some blogs you were on, do you have any links to decent ones?  I have some free time on my hands coming up.  Thinking of getting Bob Iger's book to get me away from the computer.

I do wonder what is going through Bob Chapek's head at the moment.  With the strong team I'm sure they have in place I suspect that they will come out successfully even if a lot of projects are shelved for the short-medium term.  Loads of people on Facebook are keen to rebook and get back to the parks as soon as they open so I suspect they'll be full very quickly!  Locals in Orlando are walking around an empty Disney Springs just to be there (that may have stopped now with security) so locals and those who are driving distance will be back on opening.

[KeithS]

Keith you mentioned there were some blogs you were on, do you have any links to decent ones?  I have some free time on my hands coming up.  Thinking of getting Bob Iger's book to get me away from the computer.

I'm sure you are aware of the main ones:
Micechat - http://www.micechat.com/miceage-wp/
Disboards - https://www.disboards.com/
Disney Cruise Line Blog - https://disneycruiselineblog.com/
Orlando Theme Park News - http://www.orlandoparksnews.com/
WDW News - https://wdwnt.com/
Screamscape - http://www.screamscape.com/
The Disney Blog - https://thedisneyblog.com/
Disney and More - https://disneyandmore.blogspot.com/ (this is sad - a great blog by Alain Littaye who sadly passed away of a heart attack two weeks ago - the blog is still open with a ton of old posts up until 3 March this year - he died the next day).

[DisneyKaren]

Thanks Keith, I know of about some of these but have found it hard to find my way around on a couple of them .  I am behind on my social media skills, now is a good time to improve my skills!

[calisota]

 I am behind on my social media skills, now is a good time to improve my skills!

It's okay, we think you're lovely.

Greg