Disney Brings Back Robert Iger After Ousting Chapek as C.E.O.

The surprise reinstatement of Mr. Iger and ouster of Mr. Chapek comes in the wake of a disastrous earnings announcement on Nov. 8. Disney blindsided Wall Street by reporting $1.5 billion in losses at its fledgling streaming division, up from $630 million a year earlier. Mr. Chapek said that higher Disney+ production, marketing and technology costs had contributed to the “peak” losses.

Disney shares dropped 12 percent the next morning, in part because investors — and many people inside Disney — were shocked by the happy-go-lucky tone that Mr. Chapek struck while discussing the earnings report on a conference call with analysts. Mr. Chapek’s demeanor struck many as tone deaf.

Immediately, the CNBC host Jim Cramer began to call for Mr. Chapek’s firing during comments on his show. On Friday, Mr. Cramer said that Mr. Chapek was “incapable of running a fantastic company” and “we need someone new at Disney.”

Mr. Cramer added, “That balance sheet is the balance sheet from hell.”

Mr. Chapek, 62, was named C.E.O. in February 2020, taking over from the exceedingly popular Mr. Iger. The handoff did not go smoothly. The coronavirus pandemic forced Mr. Chapek to close most of the company. This year, Mr. Chapek contended with one crisis after another, some of his own making.

In March, Disney became entangled in a heated dispute with Gov. Ron DeSantis of Florida, a Republican, over legislation meant to prohibit classroom discussion of sexual orientation and gender identity through the third grade. Mr. Chapek tried not to take a side at first, at least publicly, which prompted an employee revolt. Mr. Chapek then denounced the bill, setting off a political firestorm, with right-wing figures railing against “woke Disney.”

Article source: https://www.nytimes.com/2022/11/20/business/disney-robert-iger.html