ESPN costs Disney CEO his job

[MinnesotaFats]

Disney shares rise after Iger replaces Chapek as CEO

Investors approved of Disney's decision to replace Bob Chapek as CEO with his predecessor, Bob Iger.

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ESPN, which many had begged to get spun off years ago, has seen profitability drop below 10% in trends and viewership decline as well as being 'unbundelable' due to rising cost of football

 

[Tanko]

The board of directors unanimously signed the existing CEO to a 3 year contract a month or so ago. I'm wondering if there is a medical or family issue that drove this. It came out of blue. sure ESPN has been bleeding cash but I think this change was driven by something else we've not heard about yet.

Why would they sign the existing CEO unanimously to a 3 year deal and then fire him the next month?

 

[MinnesotaFats]

The board of directors unanimously signed the existing CEO to a 3 year contract a month or so ago. I'm wondering if there is a medical or family issue that drove this. It came out of blue. sure ESPN has been bleeding cash but I think this change was driven by something else we've not heard about yet.

Why would they sign the existing CEO unanimously to a 3 year deal and then fire him the next month?

He didn't disclose the balance sheet till Q3 call last week. It's bad...like FUKKED

...but also- the same reason they reverted BACK to Iger. There isn't anyone else who knows the Company well enough to be the boss

 

[Tanko]

He didn't disclose the balance sheet till Q3 call last week. It's bad...like FUKKED

...but also- the same reason they reverted BACK to Iger. There isn't anyone else who knows the Company well enough to be the boss

I'm happy with Iger. Guy did great for 15 years there. Grew the company (abosrbed Pixar, Marvel, Lucas Films,etc...) and established the Disney+ streaming. He'll be great.

The concern is he's only planning on staying 2 years so they have that long to find/train someone else.

 

[MinnesotaFats]

I'm happy with Iger. Guy did great for 15 years there. Grew the company (abosrbed Pixar, Marvel, Lucas Films,etc...) and established the Disney+ streaming. He'll be great.

The concern is he's only planning on staying 2 years so they have that long to find/train someone else.

The streaming is a huge matter- they're not making money on it and loathe to raise prices in Bidens America

 

[BobbyFK]

The customers definitely enjoy the streaming service. There's no reason they couldn't raise it a couple dollars. I would certainly pay a few more dollars for it every month

 

[Tanko]

The streaming is a huge matter- they're not making money on it and loathe to raise prices in Bidens America

The current CEO made bank on Disney plus this year. He got Hulu to include it and ESPN+ in their base package. Hulu raised prices $7/mo. as a result. The net impact was Disney reached 5 million more subscribers in one month and got a piece of the pie. They anticipated this increased total subsribers by 4.5 million.

 

[MinnesotaFats]

The current CEO made bank on Disney plus this year. He got Hulu to include it and ESPN+ in their base package. Hulu raised prices $7/mo. as a result. The net impact was Disney reached 5 million more subscribers in one month and got a piece of the pie. They anticipated this increased total subsribers by 4.5 million.

Yeah, but they're not making money on the price model...that's why the stock is shit.

They literally lose money on every new customer

Disney wants you to focus on revenue and profit instead of streaming subscribers — just not this quarter

Disney found itself between two stories — one of subscriber growth and another of emphasizing profit and revenue — as shares slumped.

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