Disney CEO Bob Chapek step downs, replaced by Bob Iger effective immediately

After a tumultuous few months, Disney has announced CEO Bob Chapek will step down immediately, to be replaced with the former boss.

Returning Disney CEO Bob Iger. Picture: Nicholas Kamm / AFP.

After many months of headline-grabbing tumult at Disney — from plummeting stocks to high-profile celebrity clashes — Bob Chapek has stood down as CEO to be replaced by his predecessor, Bob Iger.

The Walt Disney Co. made the stunning announcement today, revealing the change will come into effect immediately.

Chapek took on the role as CEO in February 2020, amid the pandemic, with the move marking the end of Iger’s 15 years at the helm.

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Bob Chapek was appointed CEO in February 2020. Picture: Laurent Viteur/Getty Images.

Two years later, his predecessor Bob Iger is returning to the position. Picture: Kena Betancur / AFP.

“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” chairman of the board Susan Arnold said in a statement today.

“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period.”

Returning CEO Iger said elsewhere: “I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO.

“Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe — most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration.

“I am deeply honoured to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivalled, bold storytelling.”

The sensational backflip comes after a tumultuous run for Chapek at the top.

Chapek’s role in the world’s largest entertainment company was an uphill battle from the start, beginning with the closure of theme parks and cinemas amid lockdown restrictions, which led to Disney posting its first quarterly loss since 2001 of a whopping $1.5 billion dollars.

Overall, IndieWire reports the price of Disney stock has fallen by over 30 per cent since Chapek took over as CEO.

Disney World’s flagship theme park closed in March 2020. Picture: GC Images.

It wasn’t the only scandal under Chapek’s watch.

Over the past two years, the company has been releasing films simultaneously on Disney+ and in cinemas as a result of the pandemic, which led to one of its stars taking legal action.

In 2021, Scarlett Johansson launched a major lawsuit against the movie giant, alleging that the debut of her latest Marvel movie, Black Widow, on Disney+ was a breach of her contract.

According to the complaint, Johansson’s representatives sought to renegotiate her contract after hearing about the simultaneous release strategy for Black Widow. But both Disney and Marvel were reportedly unresponsive, and sources revealed ScarJo has lost more than $67 million as a result of the Disney+ release.

Johansson reached a private settlement in October.

Johansson initiated legal proceedings for breach of contract. Picture: Jean-Baptiste Lacroix/ AFP.

Terms of the deal were not disclosed but both parties said they had managed to reach a “mutual agreement”.

“I am happy to have resolved our differences with Disney,” Johansson said in a statement. “I’m incredibly proud of the work we’ve done together over the years and have greatly enjoyed my creative relationship with the team. I look forward to continuing our collaboration in years to come.”

Chapek’s predecessor Iger held the top job at Disney from 2005 to 2020, where he oversaw the acquisitions of Pixar, Marvel, and Lucasfilm.

While he reportedly planned to retire at several points during his tenure, his contract was extended over difficulty finding the right successor, eventually settling on Chapek and remaining as executive chairman.