Walt Disney Co.¡¯s board promised a smooth transition from the end of the Bob Iger era to the new regime under Chief Executive Officer Bob Chapek. In the final hours of Iger¡¯s tenure, the reality looks much rockier.
It¡¯s not just the pandemic, which shut down Disney¡¯s theme parks, cruise ships, TV and film production just days after Chapek was promoted last year. The 61-year-old CEO¡¯s organizational changes have rankled insiders, and executives from the Iger era are departing in droves. A lawsuit by actress Scarlett Johansson over her compensation was a blow to Disney¡¯s talent relations.
Wall Street, meanwhile, is growing skeptical that the company¡¯s flagship streaming service, Disney+, will hit Chapek¡¯s target of as many as 260 million subscribers in 2024. Disney shares are down about 16% this year, heading toward their worst annual performance since 2008. Morgan Stanley said the stock is suffering from a ¡°crisis of confidence.¡±
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