Bob Chapek had a very hectic 2 years as CEO of Disney. We tell you here the reasons why he was possibly fired
Since Bob Chapek assumed the presidency of The Walt Disney Company It has been embroiled in problems and controversies. For starters, the transition happened just before the pandemic hit, so she had to navigate the huge losses caused by store closures. theme parks and movie theaters, for which, at first, he managed to gain the confidence of investors.
However, with the passage of time and after several controversies, much has been rumored about how Iger and some members of the board disagreed with the direction Chapek wanted to take. Particularly since his vision has been more focused on converting Disney into a technology company and position the brand as a super force in the streaming market.
That strategy has various problems, and apparently the mouse company couldn’t take it anymore. That is why it has just been announced that Bob Chapek was fired as Disney Chairman and Bob Iger will return to take his place.
Between problems with big stars like Scarlett Johansson and Emma Stone, indignation on the part of some artists from companies such as pixar, Y dramatic and significant monetary losses, Here we tell you in detail why they decided to make this change!
Too expensive a strategy
Since the company began to bet on streaming, their services have exceeded all expectations, and the latest report was no exception. In the last quarter of 2022, all Disney platforms reached 235 million subscribers where 164 million of them belong only to Disney +.
But that is no longer enough to ensure the success of a streaming platform. The company also reported that it had some earnings of 20.2 billion dollars, 9% more than last year in the same period, but much less than expected. And although it might sound encouraging, heavy losses on its streaming services hurt its bottom line badly.
The report indicates that Disney lost at least $1.5 billion from spending on the streaming division. Bob Chapek assured in a letter that “It had been due to spending on advertising and distribution,” but they hoped to solve the problem with the price rise in its services and the free version of Disney +.
The company then had a profit of just 162 million dollars, so the value of the company in Wall Street bass 13% In total, the company’s value has plummeted by 40% so far this yearY Bob Chapek hasn’t figured out how to attract new investors or mitigate the growing concerns executives have had since Netflix announced that he lost 200 million subscribers.
During the pandemic, Disney laid off hundreds of workers and closed several administrative divisions. However, in a 2021 report it was discovered that Chapek’s salary increased by 50%, so in that year he won 32.1 million dollars.
By comparison, during the presidency of Bob Iger from 2005 to 2020, the company increased its market value in 5 times (from 48 billion dollars to 257 billion dollars). He organized the purchases of Pixar, Lucasfilm, 20th Century Fox and Marvel. He also opted to hire Kevin Feigealso supervised the construction of shanghai disney and was responsible for building attractions such as Avatar theme park.
Bob Chapek has not been able to deliver economic results as iger, and it has not been able to float the figure of the company either. In the 2 years that she’s been like CEO, Chapek has faced controversy highly public that they have damaged the general image of the company.
To begin with, there is the controversy over the subject Don’t Say Gay. After it was discovered that Disney openly supported political figures that promote anti-LGBT legislation in Florida, place where you are Disney World, The CEO’s first reaction was to say that “I didn’t want to take sides because you never got away with those controversies.”
And that happened. Her words caused outrage from people belonging to the queer community who work in Disney. personalities like Danna Terrace and Alex Hirsch took sides against the company, and many people denounced how the company censored or limited LGBT content in movies of pixar and animated series.
In the end, Chapek announced that Disney would stop financially supporting these policies, which was used by the governor Ron DeSantis to advance “an anti-woke agenda” in order to implement such legislation. In addition, in the middle of the year he threatened the company with remove the privileges that Disney World enjoys.
Damages Disney’s Image
To this fight must be added the legal complaint that began Scarlett Johansson after Black Widow It was released both on platforms and in movie theaters. Ultimately, a settlement was reached between the parties and the lawsuit was dropped, but left Chapek very bad stop. It was not only said that I didn’t know how to negotiate with talent, but that their tactics were too aggressive and it began to be rumored that other artists did not agree with their contracts, such as Emma Stone in Cruella. Plus he gave the impression that he didn’t care about Disney stories or characters.
even recently Chapek came under fire again when he said that “he was sure that animation was for children” because “I didn’t think that fathers and mothers would continue to watch Dumbo when their child went to sleep. They want something more, something for themselves”.
This once again caused a stir and outrage, especially since Disney is defined by its contributions to the world of animation.
Nobody wanted it anyway?
All this caused rumors to spread about how really Disney was not happy with the work of Bob Chapek for a long time. First it began to be said that Bob Iger disagreed with the turn that the company began to take and that was a little frustrated that Chapek would ignore him during the first months of transition.
But that was not the first time. Months later, rumors circulated that abigail disney, great-niece of Walt and who is part of the company’s board of directors, wanted to sue him to decrease your salary. Still, a few months ago Bob Chapek renewed his contract for 3 more years where the amount of the commission received was increasedso the news of his dismissal is still more dramatic.
“The committee decided that as Disney prepares to embark on a complete period of transformation, Bob Iger is uniquely positioned to lead the company at this crucial time.” reads at the beginning of the statement that the company released to announce the dismissal of Chapek.
Chapek will not leave empty-handed, it is rumored that Disney has prepared a compensation package worth 23 million dollars.
This could indicate many things, and could even be an indication that the world is about to enter a recession, but it will be exciting to see how the company changes again and how will affect the stories Disney tells in movies and on TV.