Iger: Move Wisely And Quickly In Response To Change
One line of Sarah Whitten’s piece for CNBC, “14 years, 4 acquisitions, 1 Bob Iger: How Disney’s CEO revitalized an iconic American brand,” stands out among the superlatives.
In the year that Iger was named CEO, Disney made $2.5 billion in net income. Last year, the company’s net income was $12.6 billion, a 404% increase. Similarly, Disney stock has risen exponentially. Shares of Disney are up 450% from $25 per share in 2005 to nearly $140 in August 2019. Sarah Whitten, CNBC
Iger: A Fascinating Story
The whole piece and Iger’s story is fascinating. However, the quotes from analysts and observers — in addition to the bottom line (above) — really add to the tale.
- “Iger is going to be viewed historically as a major mogul,” said Jason Squire, professor at the USC School of Cinematic Arts and editor of The Movie Business Book.
- “Disney is totally different than what it used to be 10 or 12 years ago,” said Doug Stone, president of Box Office Analyst. “Iger came in and was laser-focused on increasing profitability.”
- “You have to give Disney credit, not just for the acquisition but for the execution,” said Paul Dergarabedian, senior media analyst at Comscore. “Had other companies bought these brands, the market share might would have been split up, but we don’t know what other studios would have done with these brands.”
Respond to Rapid Changes
But it was the words of Iger himself, early in his tenure, that precisely portended the meteoric return of Mickey and crew.
“We intend to be disciplined in our approach to our current cost structure and our investments,” he said. “This investment approach extends not only to our internal development but also to how we approach acquisitions. As we have stated in the past, we do not feel the need to acquire assets just to get bigger or simply to wade into new space. We are prepared to move wisely and quickly in order to respond to rapid changes in the marketplace.”
Fourteen years, and four major acquisitions later, Disney — and Iger — did just that.
Be sure to read Sarah’s article for the full historical perspective, a ton of graphs, and a coda to Tuesday’s Disney’s third-quarter earnings report.