Unfortunately, Mr. Iger’s spokeswoman stated that he is currently unavailable for an interview.
Lately, Disney has been facing numerous challenges, prompting senior executives to privately urge Mr. Iger to stay on board. However, Disney clarified in its statement on Wednesday that it was the board, and not Mr. Iger, who advocated for an extension. In Hollywood, there has been speculation, whether accurate or not, that Mr. Iger is hesitant to step away from his position given his repeated contract renewals. “The board determined it is in the best interest of shareholders to extend his tenure, and he has agreed to our request,” emphasized Mark G. Parker, the chairman of the Disney board. Parker further commended Mr. Iger for steering Disney in the right strategic direction and creating ongoing value.
Disney’s stock has been trading at approximately $90, experiencing a 3 percent decrease compared to the previous year and a considerable 54 percent decline since its peak in March 2021. Following the news of Mr. Iger’s extension, the stock’s performance remained stable during after-hours trading.
Apart from concerns regarding succession, Disney is grappling with various issues on multiple fronts, including disappointing results from its movie studios with films like “Elemental,” “Indiana Jones and the Dial of Destiny,” and to a lesser extent, “The Little Mermaid” underperforming at the summer box office. Additionally, Disney aims to acquire full control of Hulu, but the cost of such a purchase is high, particularly as Disney currently carries a debt of around $45 billion, partially due to the impact of the pandemic.
Furthermore, Disney’s traditional television, a key revenue driver for the past three decades, has significantly declined due to cord cutting, weakened advertising, and escalating sports programming expenses. Mr. Iger is banking on streaming services to revitalize the company’s growth. However, Disney+ has been losing subscribers, and the overall streaming division continues to operate at a loss, amounting to nearly $2 billion since the start of the fiscal year.
In addition to these challenges, Disney is also facing an ongoing screenwriters’ strike, while contract negotiations between studios and SAG-AFTRA, the guild representing approximately 160,000 actors, have been progressing poorly and could potentially lead to a strike as early as Thursday.
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