Disney CEO Bob Iger steps down in surprise announcement

NEW YORK — Disney CEO Bob Iger, who steered company’s absorption of Star Wars, Pixar, Marvel and Fox’s entertainment businesses and launch of a Netflix challenger, is stepping down immediately, company said in a surprise anuncement Tuesday.

Walt Disney Co. named as his replacement Bob Chapek, most recently chairman of Disney’s parks, experiences and products business.

“Did t see this coming -- Wowza,” tweeted LightShed media analyst Rich Greenfield.

Iger will remain executive chairman through end of his contract on Dec. 31, 2021. Besides leing board, Iger said he will spend more time on Disney’s creative endeavors, including ESPN sports network, newly acquired Fox studios and Hulu and Disney Plus streaming services. He said he could t do that while running Disney on a day-to-day basis.

“It was t accelerated for any particular reason or than I felt need was w to make this change,” Iger said on a conference call with reporters and analysts.

Iger steered Disney through successful purchases of Lucasfilms, Marvel, Pixar and or brands that became big moneymakers for Disney. Last year, top five movies in U.S. and Cana aters were all Disney movies, including two from Marvel and one from Pixar. With Dec. 20 release of latest “Star Wars” movie, Disney h seven movies that each sold at least $1 billion in tickets worldwide last year.

Iger’s most recent coup was orchestrating a $71 billion purchase of Fox’s entertainment business in March and launching Disney Plus streaming service in vember. That service got nearly 29 million paid subscribers in less than three months. In a statement, Iger said it was “optimal time” for a transition.

Pivotal Research Group analyst Jeffrey Wlodarczak said Iger h implied he would stay until his contract ended in 2021.

“On or hand, y just successfully closed Fox deal and h an unquestionably successful launch of Disney Plus so maybe he felt earlier was better to hand off reins,” he said.

Colin Gillis, director of research at Chatham Ro Partners, said choice of Chapek seems solid because his parks division has h success.

Chapek said that while he has t led television networks or streaming services, his background in consumer-oriented businesses should help. Chapek and Iger both stressed that Disney would continue on direction it h alrey been taking.

Disney is facing challenges to its tritional media business as cord-cutting picks up, meaning less fees from cable and satellite companies to carry Disney networks such as ABC, ESPN and Freeform. Disney’s own streaming services require company to forgo money in licensing revenue, although company is betting that money from subscriptions will eventually make up for that.

In short term, Disney parks in Hong Kong and Shanghai, China, remain closed because of coronavirus outbreak. In a CNBC interview, Chapek said outbreak may be a “bump in ro,” but he said company could wear it given “affinity for brand.”

Iger told CNBC he h plans to stay with Disney beyond next year.

Iger’s appointment as CEO in 2005 h been accompanied by controversy and protest from dissident shareholders Roy E. Disney and Stanley Gold. But he has come to be seen as a golden-boy top executive, and even someone who could run for president.

Iger told Vogue in 2018 that he h started seriously exploring a run for president because he is “horrified at state of politics in America today,” but Fox deal stopped his plans. Oprah Winfrey told Vogue that she “really, really pushed him to run.”

Iger, a former wearman, joined ABC in 1974, 22 years before Disney bought network.

At ABC, Iger developed such successful programs as “Home Improvement,” “ Drew Carey Show,” and “America’s Funniest Home Videos” and was instrumental in launching quiz show “Who Wants to Be a Millionaire.” He was also criticized for cancelling well-regarded but expensive shows such as “Twin Peaks” and “thirtysomething.”

Since Iger became CEO, Disney’s stock price has risen fivefold. Its stock fell more than 2% in extended tring following anuncement, on top of a broer market selloff on virus fears during regular tring.

Iger, 69, was second-highest paid CEO in 2018, as calculated by  Associated Press and Equilar, an executive data firm. He earned $65.6 million. top earner was Discovery’s David Zaslav who earned $129.5 million.

Susan Arld, independent le director of Disney board, said succession planning h been ongoing for several years.

Chapek, 60, is only seventh CEO in Disney history. Chapek was he of parks, experiences and products division since it was created in 2018. He was previously he of parks and resorts and before that president of consumer products.