Iger back on top of Disney after Chapek ousted

BURBANK, Calif. — Bob Iger, the enterprising entertainment executive who brought Star Wars, Pixar and Marvel under the Disney marquee and challenged the streaming dominance of Netflix, will replace his handpicked successor, CEO Bob Chapek, whose two-year tenure has been marked by clashes, missteps and a weakening financial performance.

The development comes two weeks after Disney’s quarterly financial performance fell well short of Wall Street expectations on both profit and revenue, a rarity. Shares of The Walt Disney Co. are down 40% this year.

Iger separated with Disney near the end of last year after remaining onboard for two years as executive chairman, helping to guide Chapek and to guarantee a smooth transition.

That transition was anything but smooth and on Sunday, Iger agreed to a two-year contract to redirect Disney’s trajectory and to help find a new chief executive.

Chapek oversaw Disney during one of the most challenging periods in company history that began with a pandemic and ended, at least under Chapek’s rule, with spiraling inflation.

The company became embroiled in a public fight with Gov. Ron DeSantis, after Disney’s home state of Florida enacted a measure that forbids instruction on sexual orientation and gender identity in elementary schools up to third grade.

Chapek remained silent publicly at first, igniting an employee revolt. When Chapek then denounced the measure, it kicked off a political backlash with conservative lawmakers and media outlets pushing boycotts and labeling Disney as too “woke.”

Months later Chapek fired Peter Rice, chairman of Disney General Entertainment Television, one of the most highly regarded TV executives in the industry. The firing stunned Hollywood and fueled new criticism by investors over Chapek’s leadership.

Over the last several weeks, more doubts were raised over Chapek’s plans to cut costs, including reports of plans for major layoffs, while Disney devotees chafed under price hikes at Disney parks.