Boardwalk Times: Stories from the Seashore — Disney's 99th Year Ends With A Bob Iger Comeback And A Brutal Bob Chapek Firing
Bob Iger returns in triumphant fashion ahead of Disney's 100th anniversary, as he replaces his successor, Bob Chapek.
Welcome back to Boardwalk Times: Stories from the Seashore! This month’s newsletter is going to be all about Bob Iger’s return to Disney — something we teased last month. It’s been a lot to process but Bob Iger is back and in charge of Disney, and his successor Bob Chapek was brutally fired. We’re going to dive into the entire situation and Iger’s to-do list at Disney this month. We also got some podcast plugs and as always LINKS OF THE MONTH.
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Bob Iger Comes Home — And The Aftermath Post-Chapek
Last year in this newsletter I wrote about Bob Iger’s last days at Disney. Isn’t it ironic one year later I’m writing about his comeback?
On an unsuspecting Sunday night in November, the Mouse House was rocked with a ginormous announcement.
Bob Iger is back. Bob Chapek is out.
This news broke as Disney+ was doing its first big live stream event with Elton John Live. Bob Chapek, who is a big Elton John fan, was supposed to introduce him at the concert. Chapek was then fired and went home. Kareem Daniel, Chapek’s right-hand man, also left the concert as soon as he heard the news.
Chapek days prior to his firing, announced that cuts and a hiring freeze were coming to Disney. There were also plans to have the marketing budgets that were overseen by Disney Studios shift to Disney Media and Entertainment Distribution. The Wall Street Journal even mentioned that Disney Parks Chairman Josh D’Amaro and Walt Disney Studios Chairman Alan Bergman were going to quit if Chapek continued to lead Disney.
GM CEO & Disney Board Member Mary Barra wanted to replace Bob Chapek in June. There was even talk of making Disney Board Member and Nike Chairman Mark Parker the interim CEO as Disney searched for a candidate. Disney Chairman of the Board Susan Arnold was a big advocate for Chapek but it seems like some on the board wanted to change back in June. This just begs the question.
Why was Chapek renewed in June?
Was the Board just waiting until Iger was available at the end of the year? Was there hope that Chapek was going to turn the corner after June and help Disney’s stock grow and avoid his bumbling-fumbling controversies? Or was this just a case that Bob Chapek in November wasn’t the same as Bob Chapek in June, and that he wore out his welcome in the days leading up to his ousting?
Still, this was just a brutal firing and blindside. Chapek, a Disney cast member since 1993, doesn’t get to say goodbye or even the benefit of saying “he stepped down.” Sure, he’s getting a $23 million payout but what about all the emotional investment and the time he spent with The Walt Disney Company? What message does this send to other cast members who aspire to be lifelong Disney cast members and want to climb the corporate ladder? After seeing how Bob Chapek and Kareem Daniel were sacked, I bet some Disney cast members are rethinking being lifelong cast members. It’s just wild that Chapek reached the top of Disney — a place many dream of —only to have it crumble in barely two years.
Chapek made his mistakes (ScarJo, the Florida fiasco, etc.), and there is no doubt he lost confidence within Disney, its execs, and the board. CFO Christine McCarthy led the charge to get him removed and it worked. It’s just surreal that Chapek had no allies that we know of besides Kareem Daniel. When fans and cast members cheer your ouster in the theme parks that can’t feel good. But on the other side of the coin, Chapek was fine being the “bad guy” as long as he made Disney money. At the end of the day that was his job. He was willing to make those corporate decisions but once it became clear he lost the fellow executives he was sent packing.
The final nail in Chapek’s coffin was surprisingly the Q4 Disney call. As someone who covers these calls for a living, at first, I didn’t sense the gravity of the situation. Sure, Disney lost a lot of money on streaming. But that has been the case for every quarter? All of sudden there is a gigantic loss and that’s it? Chapek might’ve been deflecting on the stock’s performance but he was actually mentioning Disney Parks events and other positive initiatives. In a weird twist of fate, it felt like Chapek was learning how to deflect on these calls by discussing Disney attractions, films, and TV series. A similar tactic was done by his predecessor Bob Iger. Ironically, streaming losses for Disney should’ve peaked so luckily for Iger his balance sheet should end up looking better for the next couple of quarters.
It’s also clear Chapek couldn’t maintain his relationships. As his own CFO Christine McCarthy hung him out to dry in a board meeting. McCarthy didn’t share the right numbers with Chapek ahead of time. This led to Chapek not being able to give the answers to the Board and had McCarthy answer the questions. I still have no clue how Chapek didn’t replace McCarthy if he was having all these issues with her. Maybe Chapek wasn’t given the same power as CEO of Disney to make the big moves. In the end, McCarthy was also the one who called Bob Iger back into action. Surprisingly, Iger was receptive and wanted to come back to Disney.
Bob Iger wasn’t built for retirement. Also, his post-Disney plans may not have been as exciting as running Disney. Iger didn’t get appointed to be an ambassador from the Biden Administration. Iger went on to help some startups but it’s clear his heart was always with Disney. He was even offered a job at RedBird Capital but it’s clear he’d rather be at Disney. Was Iger bored? Was Iger genuinely concerned about the company and its legacy? Or did he realize he should just run Disney until he physically can’t anymore?
Bob Chapek’s entire CEO run was overshadowed by Bob Iger, and it’s now clear that was done on purpose. Chapek never felt in control when Bob Iger lingered around as Executive Chairman. Chapek wanted to do staff cuts at the height of the pandemic, and Iger overruled him (to be fair Iger was in the right here, and Chapek’s insistence to go through with cuts doesn’t make him look good). Iger also felt like Chapek failed once he left the company for good. Iger was obsessed with Disney and even talked about Chapek’s shortcomings at lunches with film studio execs. “Iger has never been upset with anyone the way he was upset with Chapek,” according to the Financial Times.
I wouldn’t put it past Iger if he had his own to-do list ready if he got another shot to run Disney. He had to sense blood was in the water regarding Chapek.
But what’s next for Bob Iger in this second run?
Disney’s streaming strategy will have to be about profitability over subscribers in order to align with Wall Street’s changing agenda.
Iger will have to decide if it’s worth the cost to retrofit the Global Dream cruise ship that Chapek purchased for Disney. A lot of people within Disney didn’t want the deal to happen — likely because it comes across as a non-Disney move.
The Lake Nona move for Walt Disney Imagineering and other Disney Parks, Experiences, and Products employees is likely dead but will Iger officially announce that or will he just leave his workforce hanging with non-answers?
Iger also has to figure out the Reedy Creek situation and avoid a spat with Florida Governor Ron DeSantis. (Iger may enjoy getting into a debate with DeSantis so it can preview our Presidential Election in 2024… I kid… but…)
How does Iger approach Hulu? Disney is going to have a cut a large check — at least $9 billion to Comcast — in 2024. Maybe something gets worked out sooner.
What does Iger do with ESPN? Sports rights are skyrocketing. Fans love sports betting (something Disney/ESPN hasn’t fully embraced).
Can Iger help Kathleen Kennedy get Star Wars films back on track? Disney really could’ve used a Star Wars film in 2023.
What about the over-reliance on Marvel Studios for Disney+? Will Iger rally his troops at the other studios to step up their game for streaming content?
Will Iger finally face the music when it comes to the metaverse & video games?
How does Iger approach the unpopular Disney Parks changes? Or does he keep the unpopular changes because he knows deep down that Chapek was just boosting the bottom line? Iger isn’t naive though he has to know guests have been saying the Disney Parks are more complicated, cost more money, and have less magic.
We also have to discuss the rumor that Bob Iger would sell Disney to Apple.
This would ruin his legacy outright.
If Steve Jobs was still alive and Iger/Jobs was running a combined super-company that would be a different story. Iger selling Disney to Apple would be a sin. Disney is the rare media company that doesn’t need a tech giant because it’s powerful enough on its own. Iger selling Disney to Apple would be an ill-advised move and also an act of waving the white flag. Apple also wouldn’t be able to stomach the costs that come with Disney. Nor would the DOJ actually allow these two beloved mammoth companies to merge.
One of Iger’s biggest challenges in his second act at Disney is a task he failed to do correctly the first time.
Succession.
Can Iger find a successor? Can he find one he likes? Someone who leans on him but can still execute on their own after he leaves? Who could that be? Will Iger look within Disney or will he go outside of Disney?
Could Tom Staggs (Former Disney CFO/Disney Parks Chairman) and Kevin Mayer (Former Disney Direct-to-Consumer Chairman) still be the answer? Dana Walden (Chairman of Disney General Entertainment) is a contender. I still put Disney Parks Chairman Josh D’Amaro as a contender despite being a “Disney Parks” guy and being the one who replaced Chapek at his old job. D’Amaro has age and charisma on his side. Most of the media will dismiss D’Amaro and cite Walden or an outsider as the best successor option but I don’t believe that to be the case. I think Josh D’Amaro could be the perfect Iger successor with the right training.
Could Bob Iger get Disney on board to acquire Candle Media with a deal that Staggs/Mayer take over in 2025? (Tom Staggs and Kevin Mayer run a new company called Candle Media). Some of Candle Media’s assets would make sense within the Disney fold. Others would definitely feel out of place. But in the end, that deal would be paying for the leadership of Kevin Mayer and Tom Staggs, giving Disney a one-two-punch leadership combo that can execute at the highest level. It would also be ironic if one of Iger’s biggest struggles (succession) was solved by one of his greatest strengths (acquisitions).
And yes, Iger can’t just follow the old playbook of making another deal. I mean he could but it’s unlikely anything would get passed. The Candle Media deal may be small enough to sneak through though. But anyone suggesting Disney buy Warner Bros. Discovery or Netflix or Roblox is clearly missing what’s been happening at the Mouse House.
In the end, Iger just can’t get enough of Disney. He’s a superstar and legend to the cast members and fans. He also understands and loves the company. Iger loves the history of the company, and what it has done for his own legacy. There is no wonder why he wanted to come back and save the company. He didn’t want his final Disney decision to be that he stepped down amidst a pandemic and promoted a successor in Bob Chapek that he clearly never vibed with.
More Reading on The Iger/Chapek Saga
Bob Iger vs. Bob Chapek: Inside the Disney Coup (Wall Street Journal)
Bob Iger’s Christmas Carol & The Ghosts Of Past, Present & Future (Deadline)
Inside the Disney drama as CEO Bob Iger returns, replacing protege Bob Chapek (Business Insider)
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Podcast Plugs 🎙
New podcasts are coming in 2023 — This is the Waycast, The Zach Perilstein Show, and even more Boardwalk Times Multiverse of Marvel.
Shoutout to Logan Janis and Mostly Superheroes for always supporting Boardwalk Times Multiverse of Marvel. We were put on Logan’s Podchaser list of Top MCU Podcasts.
Check out Mostly Superheroes here.
LINKS OF THE MONTH
— A wonderful piece from Len Testa, president of TouringPlans, about former Disney CEO Bob Chapek. (The New York Times)
— Avatar: The Way of Water crosses $1 Billion at the global box office
— Captain America: New World Order’s plot doesn’t even sound real, it sounds insane. Ties to X-Men, Eternals, and the possibility of a new Avengers team taking on President Thunderbolt Ross? This could be nuts. (The Direct)
—I watched over 100 Disney Channel original movies this year. Here’s what I learned. (Today)
— The ‘Black Panther’ Sequel That Never Was. (The New York Times)
— Everything We Know About Epic Universe: Universal Monsters (Orlando ParkStop)
— Kareem Daniel and the rise and fall of the Disney executive who helped define the Bob Chapek era. (Los Angeles Times)
— Universal Creative suffers from executive turnover ahead of Epic Universe theme park . (TheWrap)
— Some Takeaways from the Disney Wish (Boardwalk Times)
—Predictions for the Disney Treasure Cruise Ship (Boardwalk Times)
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