What Bob Iger's return means for the future of Disney

Bob Iger as Disney CEO (Image via Disney)

Disney recently fired its chief executive Bob Chapek and brought back former CEO Bob Iger. The sudden decision to oust Chapek, who served as the CEO for two years, came in the wake of a disastrous earnings announcement on November 8.

Bob Iger has returned for a fixed timeline of two years, in which he'll do the much-needed cost-cutting to save the company while training a successor who might take the reigns after his exit. However, many people still consider that Disney will change forever within the current socio-political climate.

Will Bob Iger bring back Disney's profitability?

Monetary problems under Chapek's rule

Bob Chapek, ex-CEO, Disney (Image via Getty)

Bob Chapek's reign, which began in February 2020, helped Disney's theme parks become profitable again, though that can be attributed to things returning to normal after the pandemic. However, Disney's streaming platform, Disney+, has been a huge money dump for the company. Chapek stated that the streaming platform will become profitable sometime around September 2024. Chapek also raised prices for many Disney experiences, including Disney+ and theme parks.

Disney employees also expressed frustration with the direction that Chapek was leading the company. The company shifted many of its departments from California to Florida in 2021, resulting in many creative employees (dubbed Imagineers) resigning.

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However, the biggest reason behind Chapek's exit comes from Disney's stock prices plummeting by as much as 40%. This occurred after the 2022 fiscal report for the fourth quarter was released. The reports disappointed shareholders, which led to negative market sentiment.

Disney is in alien territory, as the problems have been building up for quite some time. With Bob Iger's long and illustrious career, he might be able to steer the company in a more favorable direction.

Disney's "woke" branding could see a change

Bob Chapek has been at the center of many controversies throughout his CEO run. His recent comments on animation being "for kids" did not sit well with fans, especially when there are Disney Pixar films such as Wall-E, Ratatouille, and Soul. Disney's animation department also felt the statement was inappropriate, given how their films are part of the family entertainment experience.

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Actress Scarlett Johansson suing the company over Black Widow not getting a theatrical release also damaged Disney's brand image. Bob Chapek also responded poorly to Florida's "Don't Say Gay" bill when Iger condemned the bill in his retirement before the company did. Chapek later said that putting out a corporate statement on the bill would be "counterproductive."

Iger has established himself as a better speaker and has steered the conversation for Disney's benefit before. His return could foster positive public sentiment within the audience.

The future of Disney content

A poster of The Avengers (Image via Marvel)

Bob Iger acquired Pixar Animation Studios, Lucasfilm, and Marvel during his 15-year-long run as Disney CEO. Marvel is holding its own under the direction of Kevin Feige, though the content quality after Avengers: Endgame is an issue.

The Star Wars franchise is also suffering since fans were displeased with Star Wars: The Rise of Skywalker's release in 2019. With Chapek's exit, Iger has the arduous task of reviving these projects. Disney's Lucasfilm endeavor is yet to come to fruition with the release of Indiana Jones, which has to prove successful as well.

Pixar films Soul, Luca, and Turning Red were also released during the pandemic, and even though they reached critical acclaim, they cost a lot of money with negligible payoffs. Iger will have to make changes throughout the enterprise to ensure maximum profitability.

Bob Iger's career

Bob Iger started in 1974 at ABC Network and worked his way up to become the President and COO of ABC. In 1995, The Walt Disney Company acquired ABC. Iger served as the Chairman of ABC until 1999 and became the president of Walt Disney International. A year later, he was named President of Disney and succeeded Michael Eisner as the CEO in 2005.

Bob Iger now has the complex task of situating the company in terms of profit and brand image. Fans are hoping Iger can turn the company around, but it is easier said than done.