Bob Iger is back.
Disney reappointed Iger as CEO on Sunday night, effective immediately, after previous CEO Bob Chapek came under fire for his management of the entertainment giant.
“It is with an incredible sense of gratitude and humility, and, I must admit, a bit of surprise, that I am writing to you tonight with the news that I will be returning to The Walt Disney Company as CEO,” Iger wrote. to employees in an email, obtained by CNBC.
Chapek was named chief executive in February 2020, succeeding Iger, who had previously said he would not return to the role.
Disney shares are down about 41% so far this year through Friday’s close. The stock hit a 52-week low on Nov. 9.
Iger has signed on to serve as CEO for two years, Disney said Sunday, “with the Board’s mandate to set strategic direction for renewed growth and work closely with the Board to develop a successor to lead the company in finish his term”.
The company said Chapek resigned. “We thank Bob Chapek for his service to Disney during his long career, including navigating the company through the unprecedented challenges of the pandemic,” said Susan Arnold, chairman of Disney’s board. She will remain in this role.
The dramatic upheaval comes 11 months after Iger left Disney, and days after Chapek said he planned to cut costs at the company, which had been burdened by rising costs for its streaming service, Disney+. The company’s earnings release earlier this month underperformed Wall Street expectations. Even its theme park business, which posted a rise in revenue, fell below analysts’ forecasts.
Chapek, whose contract as CEO was extended earlier this year, was planning a company-wide hiring freeze, cost cuts and layoffs, according to a memo obtained by CNBC earlier this month . The internal memo came days after the company’s poor quarterly earnings report.
Iger, who served as CEO for 15 years at Disney, had favored Chapek as his successor. Eventually, the two had a falling out and the shadow of their conflict cast a shadow over the company’s future. Chapek distanced himself from Iger on a number of decisions, including his new approach to streaming pricing for Disney+, Hulu and ESPN+.
Iger is a well-respected and beloved figure at Disney. He oversaw its deals to acquire Pixar, Lucasfilm and its “Star Wars” properties and Marvel, all of which have become major intellectual property billionaires.
Chapek, meanwhile, angered employees with his initial silence on the “Don’t Say Gay” law in Florida, where the company’s Walt Disney World resort is located. At the time, he received pushback from Republican politicians, including Florida Gov. Ron DeSantis, for opposing it. He also took heat for his handling of the controversy surrounding Scarlett Johansson’s pay for her work in the Marvel film “Black Widow.”
Read Iger’s email to Disney employees here:
Dear Colleagues and Cast Members,
It is with an incredible sense of gratitude and humility—and, I must admit, a bit of surprise—that I write to you tonight with the news that I will be returning to The Walt Disney Company as CEO.
When I look at the creative success of our teams at our Studios, Disney General Entertainment, ESPN and International, the rapid growth of our streaming services, the phenomenal reimagining and resurgence of our parks, the continued great work of ABC News and so many other successes in our businesses, I am in awe of your accomplishments and excited to embark with you on many new endeavors.
I know that this company has asked a lot of you over the past three years, and these times are certainly still quite challenging, but as you’ve heard me say before, I’m optimistic, and if I’ve learned anything from my years at Disney, it’s that even in the face of uncertainty—perhaps especially in the face of uncertainty—our employees and Cast Members achieve the impossible.
You will hear more from me and your leaders tomorrow and in the coming weeks. In the meantime, let me express my deep appreciation for all you do. Disney holds a special place in the hearts of people around the world because of you, and your dedication to this company and its mission to bring joy to people through great storytelling inspires me every day .
Bob Iger
Read Disney’s full announcement here:
The Walt Disney Company (NYSE: DIS) announced today that Robert A. Iger will return to lead Disney as CEO, effective immediately. Mr. Iger, who spent more than four decades at the company, including 15 years as CEO, has agreed to serve as Disney’s CEO for two years, with the Board’s mandate to set the strategic direction for a renewed growth and work closely. with the Board to develop a successor to lead the Company at the end of his term. Mr. Iger succeeds Bob Chapek, who has resigned from his position.
“We thank Bob Chapek for his service to Disney during his long career, including navigating the company through the unprecedented challenges of the pandemic,” said Susan Arnold, chair of the board. “The Board has concluded that, as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely positioned to lead the company through this crucial period.”
“Mr. Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and is greatly admired by Disney employees across the world, all this will allow him a smooth functioning transition of leadership,” he said.
The position of President of the Council remains unchanged, with Ms. Arnold holding this office.
“I am extremely optimistic about the future of this great company and delighted that the Board has asked me to return as CEO,” Iger said. “Disney and its unparalleled brands and franchises hold a special place in the hearts of so many people around the world, especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored He was asked to once again lead this extraordinary team, with a clear mission focused on creative excellence to inspire generations through bold and unparalleled storytelling.
“During his 15 years as CEO, from 2005 to 2020, Mr. Iger helped build Disney into one of the world’s most successful and admired media and entertainment companies with a strategic vision focused on excellence creative, technological innovation and international growth Disney’s legacy of unparalleled storytelling with the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox and quintupled the company’s market capitalization during his time as CEO . Mr. Iger continued to lead Disney’s creative efforts until his departure as executive chairman last December, and the company’s robust content pipeline is a testament to his leadership and vision.”