Well, it’s hard to say if the timing is just a coincidence. But smack dab in the middle of a brutal stock-market selloff that the mega-conglomerate corporation Disney (DIS) has not been immune to, long time CEO Bob Iger is resigning as CEO of the company.
Bob Chapek named CEO of The Walt Disney Company effective immediately. Bob Iger becomes Executive Chairman and will stay on through the end of his contract on Dec. 31, 2021. pic.twitter.com/RyE4MmyJZv
— Dan Linden (@DanLinden) February 25, 2020
It’s said that the Coronavirus and specifically its effects on commerce in China is playing a big role in the market turmoil. Disney certainly has a large exposure to the Chinese economy as well. Perhaps if it was pre-planned he could have waited a few days as the optics of this might leave something to be desired by shareholders of the merger hungry company.
But alas, Iger is stepping down, and it’s effective, immediately. He will be performing the role of Executive Chairman through 2021 while Bob Chapek takes over the precarious waters. Bob is a left-leaning independent, who formerly identified himself as a Democrat. It was once speculated by many that he may run for president in 2020, but that is long gone now. Shares of Disney dropped an additional 2.5% after hours.
Iger has taken criticism for his style by Democratic presidential frontrunner Bernie Sanders but has worked with the Obama administration and others in congress for consultation for a book he released last year. As reported in Deadline:
Iger is promoting his new book The Ride of a Lifetime, which was published Tuesday. He writes that he consulted with former members of the Obama administration, some members of Congress, pollsters and fundraisers, and staff from previous campaigns. He even studied “like crazy” on a variety of pressing issues, and read past great presidential speeches. But he wrote that he was “far from committing to doing it.”“In actuality, I was skeptical of the Democratic Party’s willingness and ability to support a successful business person,” Iger wrote.
CNBC reports on the timing of this transition:
“With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO,” Iger said in a statement.
Iger had been planning his succession for a while, saying at Disney’s investor day last year that “2021 will be the time for me to finally step down.”
Iger will be on CNBC to discuss his succession with Julia Boorstin at 5:30 p.m. Eastern Time.
