Bob Iger Returned Six Months Ago. How Has He Done?
On November 20th, 2022, the unimaginable happened when Bob Iger returned as CEO of The Walt Disney Company.
In one fell swoop, Disney threw former CEO Bob Chapek under the bus and then backed up over him to pick up the hitchhiking Iger. It was savage.
Photo: CNBC
We all gleefully celebrated, as the worst real-life Disney villain of the 21st century suffered a brutal comeuppance.
At the time, Iger indicated that he would only return for two years, though. Now, we’re nearly seven months into his tenure.
Photo: Pexel.com
How has Iger done during his return engagement as Disney CEO? That answer likely lies in the eye of the beholder.
How Iger Has Handled the Parks
Photo: DIsney+
When Disney confirmed Iger’s return, I started writing six different articles simultaneously. That’s a real thing that happened.
In two of them, I compiled a joint list of the most pressing issues Iger faced.
Since this site celebrates Disney theme parks, we should lead with the one that matters the most to us: price increases.
Photo: Disney
Under Bob Chapek, Disney raised its prices about as often as it shot off fireworks. Fans bristled at the endless onslaught of new expenses.
When Iger watched these events unfold from outside the company, he chimed in about how he felt Disney was losing its way a bit.
Photo Credit: ABCNews.go.com
Iger believes that the parks should remain affordable for everyone. And his actions have supported this notion.
Disney has rolled back several unpopular park restrictions, restored annual pass sales (at both American parks!), and reopened Disney Dining Plan sales.
Even as Iger has taken this approach, the parks have remained wildly lucrative. He has definitely found the perfect balance here.
How Iger Has Handled the Business of Disney
Photo: Chip Somodevilla/Getty Images
I’m merging several tangential discussions together here for the big picture perspective.
One question I asked in November was whether Disney would still perform layoffs, as Iger cares more about cast members than Chapek ever did.
Alas, we will never know how Iger would have handled this matter in a vacuum.
(Photo by Kevin Lorenzi/Bloomberg via Getty Images)
Instead, Iger faced a challenge from activist investor Nelson Peltz, who tried to force his way onto Disney’s Board of Directors.
To shut down that attempt, Iger had to clean Disney’s balance sheets, something that remains a work in progress.
Photo: AFP
Disney only completed its layoffs during the first week of June. The company stretched out the process, which made the whole problem seem to linger.
If not for the layoffs, Peltz would have kept pushing for a Board seat, an attempt that ultimately would have failed.
However, Pelt’z investment fund owned 9.1 million shares of Disney stock at the time. A total selloff could have caused a mini-run on the stock.
(Photo by Lisa Kyle/Bloomberg via Getty Images)
I suspect that Iger would have ultimately moved forward with the layoffs anyway, but this issue was never under his control.
Still, the Disney stock (DIS) matters as a conversation topic here. At the moment Iger returned, DIS traded at $91.80.
While the current woes aren’t Iger’s fault but merely a sustained reflection of Chapek, DIS trades around $91 as I type this.
Photo: measureupgroup.com
In the 24 hours after Iger’s return, the stock soared to $97.58 and eventually reached a pinnacle of $113.21 in early February.
Almost all stocks, especially media ones, have fallen due to lingering fears over the since averted U.S. debt ceiling default.
Even so, that current stock price isn’t what anyone expected to see after six months of Iger.
The Politics of Disney
Photo: Getty Images
Hoo boy.
I’m afraid that any conversation regarding this subject is akin to kicking the hornet’s nest.
So, I will remain neutral and objective when I say…
Photo: The Wall Street Journal
IF THIS WERE A PRIZE FIGHT, THE REFEREE WOULD HAVE STOPPED IT IN THE FIRST ROUND!!!
Iger has roughed up Florida Governor Ron DeSantis so much that national publications are openly mocking the would-be President of the United States.
I wrote an article suggesting that Iger may be shadow-running for President himself in 2028 at DeSantis’ expense.
Image: Disney
Iger quickly determined that Florida legislators didn’t care about the best interests of tourists.
So, he and his staff at Disney came up with an inventive Plan B that caused the humiliated politicians to rewrite the laws…literally!
Now, Disney has taken the extraordinary step of suing Florida for its legislature’s questionable actions.
Photo: cba.cj
The DeSantis team caught a break when a federal judge disqualified himself. His replacement represents the legislature’s best hope here.
Still, Iger performed masterfully during unprecedented circumstances.
He even found a way to frame DeSantis for the Lake Nona cancellation. That’s nothing short of a magic trick right there.
Photo: Central Florida Development Council
The Lake Nona project was entirely a Chapek initiative.
Iger wanted no part of it, but he managed to cancel it AND place DeSantis on the defensive all at once.
I have no idea whether Bob Iger would make a great President, but he’s demonstrably an exceptional politician.
The Disney Film Slate
Photo: CNBC
Again, you could ask ten people this question and receive ten different responses, all of which possess a kernel of truth.
Disney struggled mightily in 2022, even though it earned more box office than any other studio.
That statement is true because ALL studios struggled in 2022. At least Disney could hang its hat on three success stories.
Photo: Marvel Studios
Dr. Strange in the Multiverse of Madness, Thor: Love and Thunder, and (especially) Avatar: The Way of Water performed well enough to carry the brand.
Still, the pandemic and the launch of Disney+ have unquestionably impacted how some consumers perceive Disney films.
Photo: Disney
Many aren’t willing to return to the theater yet because they know that these films will appear on Disney+ eventually.
Meanwhile, questions linger about Disney’s recent approach with Marvel and Pixar, while we haven’t had any Star Wars film in four years.
When Iger arrived, Disney’s film strategy appeared indecisive and rudderless.
Since then, the CEO has recommitted to theatrical releases and the theatrical window, the latter of which Disney isn’t even contractually obligated to do.
While Iger has made the correct decisions, he again hasn’t necessarily gained the outcomes he’d prefer.
Ant-Man and the Wasp: Quantumania massively underperformed, counterbalancing the triumph of Guardians of the Galaxy Vol. 3.
Photo: IMDB
Disney also gains a cut of Spider-Man: Across the Spider-Verse as well as all its merchandise. But most of that money goes to Sony.
The Little Mermaid, a movie that Disney had banked a lot on succeeding, has done…okay. It’ll probably exit theaters as a draw or mild loss, though.
Photo: Disney
Can Indiana Jones and the Dial of Destiny and The Haunted Mansion remind people of Disney’s greatness? That’s the hope.
Either way, there’s not much Iger can do here. The schedule was largely set before he returned.
Restored the Faith of Cast Members
Photo: Disney
One of Bob Chapek’s chief failings was that he didn’t care enough about Disney employees.
Sure, the former CEO would say otherwise, but actions speak louder than words. His were…telling. See: Lake Nona.
I’d argue that Iger’s greatest achievement during his second stint as Disney CEO is that he has most cast members believing again.
Photo: @abigail_the_fun_princess on Instagram
That’s a strange thing to say while Disneyland Paris cast members strike and the company just finished layoffs.
I’d counterbalance it by pointing out that Walt Disney World settled its labor situation for the long term.
Also, Iger has sent all the right messages with moves like empowering Josh D’Amaro and rehiring Bruce Vaughn to co-lead Imagineering.
Photo: Walt Disney Imagineering
In combination with the cancellation of Lake Nona and the ardent support of the LGBTQ+ community, Iger has signaled that he values Disney workers.
That’s…refreshing after the past few years.
So, what do you think of Iger’s first six months back on the job?
Photo: MickeyBlog
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