PublicWire | Emerging Market Stock News
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
No Result
View All Result
PublicWire
No Result
View All Result

Home » Technology » Disney board meets as chief executive’s contract up in the air

Disney board meets as chief executive’s contract up in the air

by PublicWire
June 26, 2022
in Technology
Reading Time: 3 mins read
0

Disney will launch its new cruise ship, Wish, with great fanfare from Port Canaveral, Florida on Wednesday, but arguably the more significant event for the company and its under-fire chief executive Bob Chapek will be a two-day board meeting that kicks off on Monday.

Questions about Chapek’s future at Disney have emerged this year as the company became embroiled in controversy over its handling of the so-called Don’t Say Gay bill in Florida.

Monday’s long-scheduled meeting comes less than three weeks after Disney’s board gave Chapek a vote of confidence after a bruising few months.

But that show of support failed to quell the speculation in Hollywood about Chapek’s future, with former executives noting that a stronger endorsement would have been to renew his contract, which ends next February. A Disney spokesperson declined to comment.

Rich Greenfield, an analyst at LightShed Partners, said Chapek has had high-profile blunders such as his handling of the Florida bill and a contract dispute with actress Scarlett Johansson. But his overall tenure has been solid.

“He’s got a bad rap in Hollywood but that’s unfair,” Greenfield said. “In terms of how they navigated through the pandemic, I don’t think Chapek is doing a poor job. The bigger question is what does Bob Chapek want Disney to look like going forward, and does he have the board support to do that.”

Chapek, 61, decided to hold the meeting in Florida despite Disney’s recent tensions with the state’s governor, Ron DeSantis. In April, DeSantis signed legislation to strip Disney of its special tax status in Florida after the company criticised the Parental Rights in Education law, which restricts discussion of LGBT+ issues in primary school.

The controversy piled pressure on Chapek from Disney’s LGBT+ employees, Republican politicians and conservative commentators. “There have been several PR nightmares” under Chapek, said Jessica Reif Ehrlich, an analyst at Bank of America. “But I think they are past the worst. They have great brands and are managing them well.”

This month, Chapek sacked Peter Rice, the company’s top TV executive, who some saw as a potential candidate for his job. “This was all about [Chapek] trying to solidify his position,” said a former Disney executive. “This was Game of Thrones.”

Rice’s exit left no obvious Disney executives who could rise to the chief executive job, though some company insiders have noted that Rice never enjoyed broad support from the board. There has also been speculation that Chapek’s predecessor, Bob Iger, 71, could return to the company, which Greenfield and other analysts dismissed.

“If they’re about to fire [Chapek] there doesn’t appear to be an heir apparent,” Greenfield said. “There’s no obvious choice and I don’t buy the idea that Iger is coming back. It would seem odd for him to come back now.”

Chapek succeeded Iger as chief executive in 2020, though Iger remained at the company as chair emeritus until the start of this year. The Covid-19 pandemic broke out within weeks of his taking the job, forcing Chapek to close theme parks and other divisions. But the Disney Plus streaming network boomed during the pandemic.

Disney’s streaming business has continued to grow this year, in contrast to industry pioneer Netflix, which has lost subscribers for the first time in a decade. Disney’s theme park business is also recovering strongly despite the closure of parks in China, analysts said.

But the company’s shares are down 47 per cent over the past year, compared with an 11.3 per cent decline for the S&P 500 index, as investor sentiment on the streaming industry shifted. On Wall Street, 80 per cent of analysts have a buy rating on the stock.

Ehrlich noted Disney has a strong content slate for the rest of the year, with the box office releases of Black Panther: Wakanda Forever in November and Avatar: The Way of Water in December.

“The word of mouth on the film line-up is incredible,” she said, adding that the Disney Plus streaming service also had a strong season ahead with series such as Obi-Wan Kenobi and Ms Marvel. “The business is solid.”


This post was originally published on this site

Previous Post

Did the Fed’s preferred measure of inflation cool in May?

Next Post

G7 aims to hurt Russia with price cap on oil exports

PublicWire

At PublicWire, we know the vast majority of all investors conduct their due diligence and get their news online in a variety of ways including email, social media, financial websites, text messages, RSS feeds and audio/video podcasts. PublicWire’s financial communications program is uniquely positioned to reach these investors throughout the U.S. and Canada as well as on a global scale.

Related Posts

Technology

Apple taps TSMC’s latest tech and BYD races into Japan

September 15, 2022
0
Technology

Fortress China: Xi Jinping’s plan for economic independence

September 15, 2022
0
Technology

Patreon: fight for talent makes creator economy more costly

September 15, 2022
0
Technology

Wall Street shudders after seeing US inflation data

September 14, 2022
0
Technology

After the tech sell-off: will growth investors keep the faith?

September 14, 2022
0
Technology

UK university develops device to restore sense of touch to stroke patients

September 14, 2022
0
Next Post

G7 aims to hurt Russia with price cap on oil exports

Please login to join discussion

Subscribe To Our Newsletter

Loading
Ad
PublicWire | Emerging Market Stock News 24/7 | Investor Relations US Stock Market

© Copyright 2022 publicwire.com

Navigate Site

  • About
  • Contact Us
  • Disclaimer
  • Watch LIVE
  • Privacy Policy
  • Terms and Services
  • Contributors

Follow Us

No Result
View All Result
  • LIVE Investor News Channel
  • Cannabis
  • Energy
  • Finance
  • General
  • Medical
  • Podcasts
  • Retail
  • Technology
  • Videos

© Copyright 2022 publicwire.com

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.