Topline
In his first town hall meeting since retaking power, Disney CEO Bob Iger took the first steps toward recrafting the media giant to his vision, vowing to focus on improving the company’s bottom line and addressing several perceived missteps from his predecessor Bob Chapek.
Bob Iger’s back at Disney.
Key Facts
Disney’s long-time head honcho took over once again as CEO last week after Chapek’s ouster, and told employees Monday that the company will maintain its hiring freeze as it looks to rein in costs, according to several outlets.
Iger also touted a noticeable pivot in the company’s growth focus for its Disney+, ESPN+ and Hulu services, saying he intends to focus on profitability as opposed to subscriber numbers among the platforms — notable considering Disney reported a $1.5 billion loss in its streaming unit last quarter.
Disney bleeding money in streaming coincided with its shares’ roughly 50% drop from its March 2021 peak, and Iger’s return comes amid several rumors of Disney’s next steps, including pursuing another major acquisition — like Disney’s purchase of 21st Century Fox and Marvel Entertainment under Iger’s watch — or potentially merging with the world’s most valuable company Apple.
But Iger succinctly quashed any talk of Disney making waves in the mergers and acquisitions space, dismissing an Apple merger as “pure speculation” and saying he doesn’t expect Disney to make any large purchases any time soon.
Big Number
39%. That’s how much Disney’s stock is down year-to-date, falling a further 3% Monday.
Key Background
In addition to overseeing widening losses in its crucial subscription business, Chapek faced a flurry of criticism among employees and outside critics for his early refusal to speak out against Florida’s Parental Rights in Education Act, also known as the “Don’t Say Gay” bill for its restriction on educators discussing sexuality or gender identity in classrooms, given Disney’s outsized political influence in the state. Iger, who was Disney’s CEO from 2005 to 2020, replaced Chapek late Sunday in a surprise announcement, beginning a two-year term. Disney shares skyrocketed in the first day of trading after Iger’s re-appointment, gaining 7%, with analysts celebrating the return of Iger’s “magic.”
Further Reading
Disney Shares Jump 10% On Return Of Bob Iger’s ‘Magic’ (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2022/11/28/disney-ceo-iger-shuts-down-apple-merger-rumors-sticks-by-hiring-freeze/