Disney C.E.O. Bob Iger Hands Keys to Magic Kingdom to Its 7th Chief

While puzzled by the timing of the announcement, analysts were supportive of the choice.

“Chapek is a really good, no-brainer pick — the other division leaders have been there too short of a time,” Michael Nathanson, a media analyst and founding partner at MoffettNathanson, said in a phone interview. “He’s a really nice person who is part of the Disney culture, which is important.”

Other candidates to succeed Mr. Iger included Kevin A. Mayer, chairman of Disney’s direct-to-consumer and international division, and Peter Rice, chairman of Walt Disney Television.

Mr. Chapek indicated that he hoped to rely on both of those men. “Obviously I have not spent as much time on the media side or the direct-to-consumer side, but we have some really great, experienced leaders that are in place in those businesses,” he said.

Even so, Mr. Chapek said that his years at Disney had given him “a bit of fluency” in those businesses. “I’m familiar with the opportunities and some of the challenges that they all face,” he said.

Since taking over as chief executive in October 2005, Mr. Iger has led Disney to record financial results, even in the face of economic downturns, the occasional horrendous movie write-off and changing consumer habits that dented ESPN, the company’s longtime profit engine. Last year, Mr. Iger completed a $71.3 billion acquisition that gave Disney the bulk of Rupert Murdoch’s media empire, substantially altering the entertainment landscape. Mr. Iger then oversaw the successful introduction of Disney Plus.

The downside to that success? Nobody seemed to measure up, complicating succession. One internal candidate to succeed Mr. Iger, the well-regarded Mr. Staggs, abruptly left Disney in 2016 after losing the unqualified support of Mr. Iger and some other board members. Since then, Disney has been engaged in a quiet hunt for a successor.

Even among media conglomerates, Disney has a unique mix of businesses, some of which are healthier than others. The company’s movie studio is widely regarded as the strongest in Hollywood and the Disney theme parks are delivering record profits. But the company’s vast consumer products division has been challenged, and Disney’s television operation, which includes ABC, Disney Channel and Freeform, has been struggling with ratings weakness and a lack of breakout shows. Now it has entered the streaming era with Disney Plus, which has started strong but will lose money for the coming years as Disney spends billions of dollars on original content and technological infrastructure.

Article source: https://www.nytimes.com/2020/02/25/business/media/bob-iger-disney-ceo.html