Bob Chapek Fired

Afer years of Wokeness and failure, Chapek fired and replaced by his mentor and predecessor Robert Iger. Afer years of Wokeness and failure, Chapek fired and replaced by his mentor and predecessor Robert Iger. Iger has criticized Chapek for not being woke enough. But it's likely the underperformance (financially) of their streaming service, and lack of investor confidence. But consumers aren't thrilled with Disney's wokeness, and may be having an impact in earnings. ℹ️ Info           ~ Aristotle Sabouni Created: 2022-11-21

The end of Bob Chapek’s run as CEO of Disney came so suddenly and ignominiously that employees at first thought the e-mail announcement was a hack or a joke. Late last night, the board at the House of Mouse gave Chapek the boot only a few months after extending his contract through 2024.

Financially:

• Disney’s stock saw its biggest drop in 21 years earlier this month after the company missed Wall Street expectations on revenues and profits for its final fiscal quarter of the year.
• The stock has also halved in value over the last year, underperming the market and the segment -- a sign of a lack of investor confidence.
• Streaming losses are huge (≈$1B), recession fears on the parks division, is causing investor concerns.
• Last week, Chapek announced layoffs, a hiring freeze and other cost-cutting measures. Similar efforts are underway at rival entertainment companies. But that didn't seem to turn-around the lack of confidence in management.

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Disney Disney used to be the all American Company, but it has changed with the times in ways that Walt and Roy would never have approved.

🔗 Links

• Hotair: Disney Board boots CEO in overnight power play
• WSJ: Iger Replacing Chapek

Tags: Disney