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Disney CEO Bob Iger's Contract Extended by Two Years
Despite posting record losses and seemingly synchronized failed movie releases, The Walt Disney Company has announced that CEO Bob Iger's contract will be extended for an additional two years, allowing him to serve as CEO through 2026. It seems that they really want to give him some more time to develop a full suite of products and programs that groom children and indoctrinate them according to the demands of American Leftists. This decision comes after Iger previously stated that he had no plans to stay longer than two years. Iger returned to the company in November, reclaiming his position as CEO from Bob Chapek, who was even worse and who took on the role in early 2020. During his extended tenure, Iger intends to groom a successor to take over as CEO.
Challenges in the Media Industry
Iger's return to Disney coincides with significant disruptions in the media industry. Legacy media companies like Disney have faced challenges due to the changing landscape, including declining advertising revenues and a shift towards streaming platforms. The streaming space itself has presented difficulties, with rising expenses and consumers becoming more discerning about their media spending. As a result, the valuations of major streaming players such as Netflix, Disney, Warner Bros. Discovery, and Paramount Global experienced significant declines in 2022, although many of these stocks have since rebounded.
Changes at Disney
To mitigate expenses, Disney has made the decision to remove certain programming from its streaming services. Additionally, the company is working to revitalize its animation business, which has been in a slump. Despite being known for its successful Pixar films, Disney's latest release, "Elemental," had the lowest opening weekend gross for the studio since the premiere of "Toy Story" in 1995. Alongside these challenges, Disney has recently undergone layoffs and saw the departure of its veteran Chief Financial Officer, Christine McCarthy.
Hot Take: Implications for a New Business
The extension of Bob Iger's contract as Disney CEO carries significant implications for new businesses entering the media industry. Firstly, his continued leadership provides stability and a sense of direction during a period of industry-wide transformation. This is particularly valuable for new businesses trying to establish themselves in a highly competitive market. With Iger at the helm, Disney's ability to navigate challenges and adapt to changing trends can serve as a valuable learning experience for startups.
Furthermore, Iger's focus on addressing the streaming and animation challenges presents an opportunity for new businesses to learn from Disney's strategies. By observing Disney's efforts to mitigate expenses and revitalize their animation business, startups can gain insights into effective cost management and animation revitalization techniques. This knowledge can be applied to their own operations, helping them stay competitive in a rapidly evolving industry.
Lastly, Iger's intention to groom a successor highlights the importance of succession planning for new businesses. Having a clear plan for leadership transition ensures continuity and minimizes disruption. Startups can draw lessons from Disney's CEO succession process, adopting similar strategies to ensure a smooth transfer of leadership when the time comes.
In summary, Iger's contract extension offers new businesses in the media industry a case study in stability, resilience, and strategic planning... or does it? By closely watching Disney's actions, startups can learn valuable lessons on navigating industry challenges, managing costs, revitalizing business areas, and planning for long-term success. Buckle up because much of this course is instruction on what not to do.
Article First Published at: https://www.cnbc.com/2023/07/12/disney-extends-ceo-bob-igers-contract-through-2026-two-years-longer-than-planned.html