Mr. Iger said in a statement on Sunday night that he was “extremely optimistic about the future of this great company and thrilled that the board of directors asked him to return as CEO.”
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Mr Chapek did not respond to requests for comment.
Mr Iger’s surprise recovery and Mr Chapek’s ouster comes in the wake of a disastrous November 8 earnings announcement. Disney stunned Wall Street by reporting $1.5 billion in losses from its fledgling streaming division, up from $630 million a year earlier. Mr Chapek said Disney+’s higher production, marketing and technology costs had contributed to the “peak losses”.
Overall, Disney generated $20.15 billion in revenue in three months ending Oct. 1, up 9 percent from a year earlier. But analysts had expected $21.3 billion. Earnings totaled $162 million, or 9 cents per share, about the same as a year earlier. Excluding items affecting comparisons, earnings per share for the most recent quarter came in at 30 cents, far less than analysts had expected.
It’s almost unheard of for Disney to miss expectations on both revenue and earnings per share.
Disney shares fell 12 percent the next morning, in part because investors—and many people within Disney—were shocked by Mr. Chapek’s upbeat tone when he discussed the earnings report on a conference call with analysts. Mr. Chapek’s demeanor struck many as tone-deaf, especially when he improbably began to talk about how great the response had been to Mickey’s Not So Scary Halloween Party, a relatively minor event at Disneyland. At least one adviser had warned Mr. Chapek in advance that his prepared remarks were inappropriately sunny.
Immediately, CNBC host Jim Cramer began arguing for Mr. Chapek’s firing during comments on his show. On Friday, Mr. Cramer said Mr. Chapek was “unable to run a great company” and “we need someone new at Disney.”
Mr Cramer added: “That balance is the balance from hell.”
The comments of Mr. Cramer bounced among Disney’s senior executives, who grew increasingly angry, with a few telling each other that they had lost faith in Mr. Cramer’s ability. Chapek to lead Disney out of the slump. Disney shares are down 41 percent since January to about $98, and much of the compensation of senior creative leaders at Disney comes in stock options.
Mr. Chapek was appointed CEO in February 2020, taking over from Mr. Iger. The transfer did not go smoothly. The coronavirus pandemic forced Mr Chapek to shut down most of the business. This year, Mr. Chapek faced one crisis after another, partly of his own making.
