by Donald Wood
Last updated: 8:07 AM ET, Mon November 21, 2022
The Walt Disney Company announced that former chief executive officer Bob Iger would return to the company in the same position after Bob Chapek stepped down due to the company's poor recent financial performance.
According to Reuters.com, the 71-year-old Iger agreed to a deal that would have him lead Disney for two more years, effective immediately. He previously served as the company's CEO for 15 years before retiring as chairman last year.
Chapek took over as Disney CEO in February 2020 and helped the company navigate the coronavirus pandemic and the related closures and restrictions. Shares have dropped more than 40 percent so far this year and the change was part of Disney's attempt to boost investor confidence and profits at its streaming media unit.
"I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO," Iger said. "Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe-most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration."
"I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling," Iger continued.
The Disney+ unit has been one of the most disappointing factors of the business, losing nearly $1.5 billion in the fourth quarter and failing to turn a profit since its 2019 launch. The service was expected to become profitable during the 2024 fiscal year. The position of Chairman of the Board remains unchanged, with Susan Arnold serving in that capacity.
While the company's streaming division has struggled, Disney revealed earlier his month that its theme park division showed financial growth in the fiscal fourth quarter despite temporary closures in Florida due to Hurricane Ian and in China due to coronavirus-related restrictions.
During the quarterly conference call, Disney's Chief Financial Officer Christine McCarthy announced that the company's parks, experiences and products department reported revenue of $7.4 billion in the fourth quarter, increasing by more than 34 percent.
For the latest travel news, updates and deals, be sure to subscribe to the daily TravelPulse newsletter here.
Topics From This Article to Explore
