Bob Iger CEO Returns... Savior for the 'Crisis-Stricken Disney'

Returning to Management Frontline After 2 Years and 9 Months... Disney Faces 2 Trillion Won Loss in OTT Sector

Bob Iger Disney CEO
Photo by EPA Yonhap News

[Asia Economy Reporter Lee Ji-eun] Walt Disney announced that it has reappointed Bob Iger, who led Disney for over a decade, as CEO amid weak results in the fourth quarter (July to September) of the fiscal year. Iger returns to the front line of management after stepping down as CEO 2 years and 9 months ago.

According to a report by US financial media CNBC on the 20th (local time), Disney appointed Iger as the successor to current CEO Bob Chapek, who resigned.

Iger handed over the CEO position to Chapek in February 2020 and stepped back from day-to-day management. At the end of last December, he also handed over the chairman of the board position to Susan Arnold, who previously served as an executive at Carlyle Group and Procter & Gamble (P&G). Based on his resignation as chairman, this marks Iger’s return to Disney after 11 months.

Disney released a statement saying, "We have concluded that Iger is the only person capable of leading Disney through this complex and critical period of change," and announced that he will serve as CEO for the next two years.

Major foreign media outlets such as the Associated Press explained that the expanding losses in Disney+?Disney’s online video streaming service (OTT)?have caused significant concern at Disney.

According to Disney on the 8th, the streaming division, which includes Disney+, recorded a loss of $1.47 billion (approximately 2 trillion KRW) in the fourth quarter. This is more than double the loss compared to the same period last year. Although Disney+ added 12.1 million subscribers worldwide in the fourth quarter, the Wall Street Journal explained that subscriber growth has yet to translate into profits.

Disney’s fourth-quarter results fell short of market expectations. Fourth-quarter revenue increased 9% year-over-year to $20.15 billion, but this was below the market estimate of $21.24 billion. Earnings per share (EPS) were $0.30, also below the market expectation of $0.50.

Iger is expected to act as a savior for Disney, which recorded an earnings miss. Major foreign media reported, "Disney is currently working to turn its streaming service into a profitable business," adding, "It is preparing for large-scale cost reductions to counter streaming competition, economic recession, and high interest rates."

Iger joined ABC in 1974 and built his career by participating in the development of several famous programs. After ABC was acquired by Disney in 1996, he was active in the entertainment sector and became CEO in 2005. He then led major content company acquisitions, starting with the $7.4 billion acquisition of animation studio Pixar in 2006, followed by Marvel and Fox.

Iger also led the launch of Disney+. Disney+ succeeded in acquiring 29 million paid subscribers in less than three months after its launch but has struggled to generate profits due to increased costs and declining revenue.

This content was produced with the assistance of AI translation services.