Robert iger Back As Disney CEO As Bob Chapek Exits

In a blockbuster development, Walt Disney Co.’s longtime chief Robert Iger is returning to lead the Burbank-based entertainment giant, Meg James and Ryan Faughnder reported for the Los Angeles Times.

Photo Insert: Iger, in a statement, said he was “thrilled” to return to his longtime home though it's unclear what triggered the board’s decision.

The Sunday night (Monday morning in Manila) announcement by the Disney board — made shortly before Disney+ began its high-profile livestream of the Elton John concert at Dodger Stadium — stunned Hollywood.

The switch comes less than a year since Iger said his long goodbye after a storybook 15-year run as chief executive.

Disney’s board said he had agreed to serve two additional years as chief executive. Iger takes over for his hand-picked successor, Bob Chapek, who suffered a number of setbacks during his nearly three years as chief executive.

Iger, in a statement, said he was “thrilled” to return to his longtime home. It’s not clear what triggered the board’s decision, but directors were said to be increasingly impatient with the company’s shaky financial performance and organizational changes Chapek made at the Mouse House, insiders said.

“The board came to the conclusion they were losing the heart and soul of the company,” said one longtime Disney observer who was not authorized to comment publicly. “This may have seemed quick, but the creative community has been saying that it was just a matter of time. The situation just wasn’t tenable.”

Disney’s marquee streaming service has grown despite intense competition, but it doesn’t make money. The company recently disclosed that it had lost $1.5 billion in the July-September financial quarter on its streaming service business, including Disney+, and investors have been getting restless, driving down the company’s stock.

Chapek declared that the fourth quarter represented the peak of Disney’s losses in streaming as the company prepared to raise prices and add a Disney+ tier with advertising. Just days later, Chapek sent a memo to Disney leadership calling for cost-cutting measures, including layoffs and a hiring freeze.

Disney’s stock has dropped more than 40% so far this year. It ended trading Friday at $91.80, after starting the year at nearly $160 a share. The company is currently valued at $164 billion. Over his career as CEO, Iger, 71, grew the company’s market capitalization from $48 billion to $257 billion.

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