Disney CEO Robert Iger arrives for the 92nd Academy Awards on the Dolby Theater in Hollywood, California, February 9, 2020.
Robyn Beck | AFP | Getty’s paintings
The Walt Disney company will extend CEO Bob Iger’s contract by two years, extending his term until 2026.
Iger told CNBC in February that he had no intention of staying in his position for greater than two years, which might take him all of 2024. Iger returned to the corporate in November, taking all over again from Bob Chapek, who was named CEO in early 2020. Iger planned to arrange a successor during his tenure as CEO.
4 times between 2013 and 2017, Iger prolonged his term as CEO after saying he planned to retire.
The succession process stays a key issue for Iger, who noted in an announcement on Wednesday that the corporate’s board is continuous to judge candidates for the position. “I need to place Disney in a robust position when my successor takes over,” Iger said of the contract extension. “The importance of the succession process can’t be overstated.”
Iger’s second tenure at Disney coincided with an upheaval in the standard media space. Big players like Disney have needed to grapple with a rapidly changing landscape as promoting dollars run dry and consumers increasingly switch from cable subscriptions to streaming.
Nevertheless, the streaming space has been difficult to navigate in recent quarters as spending has increased and consumers have develop into more aware of their media spending. The slowdown in streaming subscribers has lowered the valuations of Netflix, Disney, Warner Bros. Discovery and Paramount Global roughly halved in 2022 – before just a few stocks rebounded in the primary half of this 12 months together with the broader market.
Disney was downloading programming from streaming services to get monetary savings.
The corporate can be attempting to pull its animation business out of a serious rut, as its latest Pixar movie, “Elemental,” recorded lowest gross opening weekend for the studio because the release of the unique Toy Story in 1995.
Disney also recently finished lay off 7,000 staff and witnessed the departure of veteran CFO Christine McCarthy.
“Bob has once more steered Disney on the suitable strategic path to continuous value creation, and to make sure this transformation is successful, while allowing sufficient time to position the brand new CEO for long-term success, the board has decided that it’s in one of the best interests of shareholders, to increase his term, and has agreed to our request to stay CEO until the top of 2026,” said Mark Parker, president of Disney.
CNBC’s David Faber will interview Iger on CNBC’s “Squawk Box” at 8:00 a.m. EST Thursday.
— CNBC’s Alex Sherman contributed to this report
This story is evolving. Check for updates.