Disney Board Approached Iger on Friday, Chapek Fired Moments Before Public Announcement
According to a report on CNBC, The Walt Disney Board was in discussions with Bob Iger on Friday evening about coming back as CEO. A deal was reached last night. At that point, Chapek was notified of the decision, but not until moments before the announcement went public on Sunday.
CNBC’s David Faber reported on Monday that the board became concerned after the company reported its fourth-quarter earnings report earlier this month.
Although the board has identified some internal candidates that might be able to assume the CEO position, they felt that they “didn’t want to put someone new in that position given all various pressures on the company.”
Faber said that the board felt that they didn’t have many choices at this point and it came together pretty quickly. They had previous concerns but they were accelerated after this most recent earnings call. Last night, Susan Arnold made it clear to Chapek that he was out.
“It was not a well-received report,” said Faber. “The conference call was not well thought of. The losses of Direct to Consumer (DTC) losses obviously have grown. Even though the promise to be profitable by [the] fiscal year ’24 remains.”
With Iger’s return, the Board’s goal is to stabilize the Company and give some “hope and optimism to the organization.”
Earlier, we reported that as the markets opened up, the Disney stock [$DIS] soared as investors and fans alike cheered Iger’s unexpected return.
Check out our continuing coverage of the return of Bob Iger as CEO of The Walt Disney Company: