Disney Approaches First Earnings Report Since Iger’s Return as CEO
By Movieguide® Staff
As Disney approaches its first earnings report since Bob Iger took over as CEO, corporate restructuring and layoffs are expected.
According to a recent report from Deadline, Iger plans to implement aggressive reorganization strategies as the company, and its investors, are desperate for signs of a successful and profitable rebound.
Deadline reported: “Details on the restructuring moves, which could potentially include some sort of consolidation within the company’s marketing operations as well as at Disney Television Studios, are likely to emerge soon and could coincide with the company’s next quarterly earnings report February 8, sources tell Deadline.”
Movieguide® previously reported on the change of CEO and offered some analysis of why Bob Chapek failed to turn a profit as the Disney CEO:
Former CEO of The Walt Disney Company Bob Iger will return to the company after Bob Chapek’s short tenure as CEO comes to a swift end.
The change comes after abysmal fourth-quarter earnings for the company.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” Susan Arnold, Chairman of the Board for Disney, said in a statement according to CNN. “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period.”
Chapek became CEO in 2020. According to investors, stock value for the Disney dropped by an astounding 36% this year alone.
Under Chapek, Disney navigated COVID-19, a lawsuit with actress Scarlett Johansonn, and most recently, a promotion of LGBTQ characters and movies following Florida’s “Parental Rights in Education” bill and backlash over his initial silence.
“Speaking to you, reading your messages, and meeting with you have helped me better understand how painful our silence was,” Chapek said at the time in regards to the response to the LGBTQ employees.
With Iger’s return, Disney shares rose by 9% according to investors.
As Disney faces a weak economy, an uncertain transition from linear TV to streaming, it is important that they return to the family-friendly values that made them one of the leading companies in family entertainment.
After Netflix reported losses in subscriber growth last year, Disney will need to take inventory of its own platforms like Disney+ and Disney Television Studios, which consists of 20th Television, ABC Signature, 20th Animation and Walt Disney Television Alternative.
The situation is reviving questions raised at the time of Disney’s $71.3 billion acquisition of Fox assets as to whether Disney would keep then-ABC Studios and 20th Century Fox Television separate. Ultimately, they did remain stand-alone studios with their own infrastructures, though Fox 21 Studios was folded into 20th TV, which is now run by Karey Burke. Meanwhile, 20th Television Animation was made a separate division led by Marci Proietto, and ABC Studios was rebranded as ABC Signature with Jonnie Davis at the helm.
The consolidation chatter is even stronger this time around, with various scenarios circulated about what divisions could be merged. Everything seems to be on the table.
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