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It has become known that Bob Iger is leaving his position of the Disney CEO, the DIS stock has reacted negatively to the announcement and is falling in the pre-market.
Walt Disney Co (NYSE: DIS) CEO is stepping down. Sources indicate that Bob Iger has resigned from the top role in the entertainment giant yesterday. The announcement was made after trading hours. Disney (DIS) stock went into a dive after the announcement about the CEO. Bob has reportedly decided to step down to take up creative roles with Disney.
Bob Chapek has been appointed to take over the role of CEO. Chapek who has been the head of the Parks business unit of the company will function as CEO until confirmation by the board of directors. Disney has indicated that the process of succession was already in the pipeline. This has also made many within the investment community wonder about the timing of the announcement. This is in line with the fact that Disney is doing quite well considering all factors.
Bob Iger Had a Great Career
Iger has had an excellent run as Disney CEO. During Iger’s tenure, Disney has been transformed from being just a regular entertainment company into a powerhouse. The company now goes toe-to-toe on different fronts with top competitors in several fields.
Early on in his career, Iger had acquired Pixar Animation. The $7.4 billion deal saw the animation company expand its content creation base. More recently, the acquisition of Marvel has created back-to-back blockbusters that are everyone’s favorite. The Lucasfilm acquisition also created a new paradigm as far as star wars fans were concerned. Fox’s Entertainment business also brought streaming favorite Hulu under Disney’s control. The launch of Disney+ has beaten everyone’s expectations. Disney now competes directly with Netflix and others for the streaming market.
On the sports side, the launch of ESPN+ has also created a fanbase for sports fans within the Disney empire. Iger has indicated that his departure as CEO would allow the company to free him up “just to focus on the creative side. It was that simple.”
He also indicated in the statement:
“With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO.”
New Disney CEO and DIS Stock
Sources report that he had identified Chapek as a possible replacement before now. Having extended his contract in 2018 to 2021, Iger had already started putting things to get an heir for his seat. Former COO Thomas Staggs resigned in 2016 when indications emerged that the board of directors hadn’t indicated an interest in placing him as heir apparent.
It also places Disney in firm hands. Chapek has been around the Disney Empire for about 27 years. This gives credence to the management practice of hiring from within. It also places Disney as a force to reckon within the next decade and beyond.
Disney seems to have been lucky with CEOs in recent times. From Michael Eisner to Iger and now Chapek, the company initially known for Mickey Mouse, Donald duck and co will now be known for many other things in the twenty-first century.
As we have already mentioned, the stock reacted negatively to the announcement. At the closing, Disney (DIS) stock stood at $128.19. This is a 3.62% decline since the last trading session.
At the time of writing, in the pre-market, DIS keeps falling. It has already lost 3.08% and its price is $124.24.