Source: http://www.crazydaysandnights.net

When this CEO stepped down, it sent shockwaves through the business and entertainment community.

It was immediate and unprecedented.

It also came after a meeting with a global security firm advising him what to do in regards to the foreign money makers he was forced to shut down. He concluded things were going to hell in a hurry and he didn’t want to be associated with the company when it crashed and burned.

He will be ready to be its Phoenix though after it is all over.

Bob Iger

Robert Allen Iger is an American media executive and film producer who is Executive Chairman of The Walt Disney Company. He was CEO from 2005 to 2020

In retrospect, Disney’s CEO switch was a decisive act of crisis management

Disney surprised the media industry on February 25 when it announced that longtime CEO Bob Iger had replaced himself with executive Bob Chapek. The abruptness of the news and the choice of successor, combined with the company’s explanation that it was a long-planned transition, didn’t seem to add up.

It now makes more sense. It appears evident in hindsight that Iger saw the dire financial impact of the coronavirus sooner than other American chief executives and took decisive action. The most important task of Disney’s CEO for the next two years will be rescuing Disney, not growing it. Iger made a point to end his 15-year reign on a high note. Chapek was put in charge as the Magic Kingdom’s wartime leader.

Disney’s stock multiplied from $30-40 per share during 2011 to $148 this past December, capped with a phenomenal launch of its Disney+ subscription video streaming service. Then from January 2 to February 25, as the virus impacted China and Disney shut down its Shanghai and Hong Kong theme parks, the stock slid from $148 to $128. Between February 25, the day of Iger’s announcement, and this morning, the stock dropped a further 29% to $92. That’s a 38% plummet in the company’s valuation in 10 weeks.

As head of the company’s Parks, Experiences, & Products division, Chapek represents the old-school businesses of Disney. These business lines sustained healthy growth through last year, but Iger had spent the last couple of years emphasizing that Disney’s future sits with its subscription video streaming services (Disney+, Hulu, ESPN+, Hotstar) overseen by Kevin Mayer, who previously spearheaded the company’s incredibly successful M&A strategy (including acquisitions of Pixar, Marvel and Lucasfilm).

With Disney managing the impact of the crisis on its parks in China beginning in January, Iger likely foresaw the global spread of coronavirus and the economic damage sooner than most other American chief executives. Disney will be hit hard. – Source

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