Walt Disney CEO Bob Iger has been telling associates that he’s stressed from trying to fix the mess left by his hand-picked predecessor as he tries to turn around the entertainment giant, according to a report.
The 72-year-old Iger has even been known to joke that he reassumed the CEO job at the wrong time, according to The Wall Street Journal on Friday.
Iger was brought back last November on a two-year deal after the ouster of Bob Chapek, who took over from his mentor at the onset of the coronavirus pandemic in 2020.
The week, Disney’s board extended his contract through 2026 to give him more time to right the ship.
“The challenges are greater than I had anticipated,” Iger told CNBC from Sun Valley, Idaho, where he is attending the annual Allen & Co. “summer camp for billionaires.”
Among the biggest headaches is the accelerating decline of the traditional TV and cable and business.
“The disruption of the traditional TV business is most notable,” Iger said.
“If anything, the disruption of that business has happened to a greater extent than even I was aware.”
Iger told CNBC on Thursday that he is seeking a strategic partner for ESPN and signaled the company would be open to selling TV assets such as the ABC television network, the FX family of cable channels and National Geographic.
The company’s foray into streaming — it owns Disney+, ESPN+, and a controlling stake in Hulu — has cost it more than $10 billion since late 2019.
According to The Journal, Iger has reassured shareholders that Disney+ would start turning a profit by September of next year.
Upon Iger’s return, he embarked on a massive, $5.5 billion cost-cutting spree that includes laying off thousands, including high-priced talent at cable sports giant ESPN.
Iger agreed to the restructuring in order to fend off a proxy fight from activist investor Nelson Peltz, who amassed a nearly $1 billion stake in Disney in his quest for a board seat.
Meanwhile, he has blamed much of what ails the Mouse House on Chapek, according to the Journal.
He was especially critical of Chapek’s moves to hike ticket prices to Disney theme parks in Florida and California, the outlet reported,
Disney’s theme parks are struggling to attract their usual number of visitors this summer as exorbitant prices have prompted vacation-goers to seek alternatives.
Also under Chapek, Disney became embroiled in a public spat with Florida Gov. Ron DeSantis over a new law that barred sex- and gender-identity education to elementary school children.
Chapek’s fate was sealed after a disappointing earnings report which showed accumulating losses in the streaming division, which has yet to turn a profit since its launch in 2019.
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