How Bob Iger Went From Hero to Villain in 72 Hours
Disney’s current CEO — Bob Iger — has made some controversial statements in the past, but following his latest ones, we’ve seen some interesting things happen.
©Disney
It has been announced that Iger will be sticking around at Disney longer than originally expected for his “return tour,” and he’s commented recently on the actors strike, certain accusations made against Disney by Florida Governor Ron DeSantis, and more. Following these comments, Disney’s stock has been…less than great, and comments against Iger have similarly taken a turn for the worst. Let’s take a look at what’s going on.
A Timeline
July 12th
It was announced that Iger would stay on until 2026 late in the day on July 12th. On that day, stock prices had already closed at $90.15.
July 13th
Then, on July 13th, Iger participated in a CNBC interview where he commented on the actors’ strike, accusations of Disney “sexualizing” children, potentially selling off some of the Company’s TV assets, and the future of ESPN, among other things.
That interview was held early in the morning and on that same day, Disney’s stock values increased just slightly to $90.47. At that stage, investors might have felt a decent level of confidence in the Company, Iger’s continued leadership there, and some of his responses to things.
©Disney
The man behind some of Disney’s biggest acquisitions and who served as CEO during some of its greatest successes would be sticking around for more time. His initial return to Disney as CEO was championed by celebrities and analysts, so a longer stay would only prove beneficial for the Company, right?
But, things changed pretty dramatically toward the end of the day on July 13th. Later in the day on August 13th, the actors union officially announced its strike and the turn against Iger really began. (We’ll get to that in a second — let’s tackle some more of the stock prices first.)
July 14th and Beyond
By July 14th, Disney’s stock value closed at $88.62 and then closed at $85.56 on July 17th. Prices have gone up slightly since then — closing at $85.95 on July 18th and trading around $87 on July 19th.
Some of the LOWEST Stock Values of the Year
The $85 values represent some of the LOWEST closing values for all of 2023, and some of the lowest values in weeks. Looking at Google stock data, the stock was trading at around $88.97 at the start of 2023. It then increased to its highest peak in February at $113.21. Prices declined (with some increases in between) and then hit some numbers around $88 and $87 in May and June.
But the recent $85 values are lower than that. Again, things have slightly increased recently but values are still a far cry from some of the higher values seen earlier this year and even the higher values seen in June and May.
If we go back even further, it looks like the last time Disney really closed at a lower value than the $85 value was on December 28th, 2022 (based on the Google 1-year chart).
It’s not all that dissimilar from the values the stock hit all the way back on March 20th, 2020, right after Disney World closed its theme parks due to the COVID-19 pandemic.
As TIME Magazine reports, a variety of things can impact stock values in general. If investors see solid financial results reported, they may gain confidence in a company and buy more shares. That increased demand and cause stock prices to go up.
But if there is bad news revealed about a company’s performance, investors might lose confidence and sell some shares, which can lead to a decrease in price. Inflation, the state of the economy, interest rates, consumer spending, world events, and more can all factor into stock prices too.
©Disney | Walt Disney Company Headquarters
So what could be impacting Disney stock right now? Well, a few things and some of them might have to do with the man at the top — Iger himself.
Actors Strike
First and foremost, Variety notes that due to the actors strike, “Film and television productions will shut down,” and “SAG-AFTRA members will not be able to attend premieres, do interviews for completed work, go to awards shows, attend film festivals or even promote projects on social media while the strike is in effect. They are also not allowed to attend conventions such as Comic-Con or 90s Con to promote any past or present work made under a SAG-AFTRA contract.”
©Disney
We’ve already seen how that has impacted things like the Haunted Mansion movie premiere for Disney, and its effects will likely be felt in a big way on pending Disney projects that were being worked on. This could be making some folks feel particularly worried about Disney’s future with the number of films and tv shows its fans have come to know and expect.
Iger himself commented on how devastating the strike would be (note that at the time he commented, the strike had not been officially announced but was anticipated). Iger said that the industry is still trying to recover after COVID-19 shut down many productions. He said, “This is the worst time in the world to add to that disruption.” See his full comments below.
"There is a level of expectations that [the writers and actors] have that is just not realistic," says $DIS CEO @RobertIger on the @sagaftra and WGA strike. "They are adding to a set of challenges that this business is already facing and that is very disruptive." pic.twitter.com/ySYvfQBYA5
— Squawk Box (@SquawkCNBC) July 13, 2023
Criticisms Against Iger
Aside from the concerns some might have about Disney’s projects, Iger’s comments on the strike have also received a lot of criticism. Though Iger said he understood that labor organizations must work on behalf of their members, he mentioned that studios want to do the same with writers and actors, but there’s a level of expectation they have that’s just not realistic, according to him.
He mentioned that he respects the unions’ rights to get more compensation for their people, but said “you also have to be realistic about the business environment.”
©Natacha Rafalski and Walt Disney Imagineering via Instagram
Iger admitted that it could be very damaging to the industry and have a major impact on support services. “It’s a shame,” he said as he mentioned how it could affect the economy of different regions.
Iger’s very words have been turned against him multiple times by many actors on the strike lines and beyond. Things really started with Fran Drescher, SAG-AFTRA President, who spoke up against Iger saying “If I were that company, I would lock him behind doors.” She also said that Iger’s comments were “repugnant,” “out of touch,” and “tone-deaf.” She noted that, in her opinion, his comments showed that he was not aware of what was happening on the ground with people who don’t make “anywhere near” his salary.
Cody Ziglar, a writer on She-Hulk posted on Twitter that the residual check from their episode on the show was $396. Ziglar has posted a number of other comments since then about the strike and Disney.
The residual check from my episode of She-Hulk: Attorney at Law was $396. https://t.co/TcS6WO1MjL
— Cody Ziglar (updates mostly) (@yayforzig) July 13, 2023
Abigail Disney criticized Iger saying that he could only call workers “unrealistic” if he couldn’t see beyond the confines of the “narrow and morally bankrupt business ideology that has set your company on this long track toward exploitation and injustice.”
You can only call your workers and partners "unrealistic" if you cannot see beyond the confines of the very narrow and morally bankrupt business ideology that has set your company on this long track toward exploitation and injustice. #Disney #Iger #WritersStrike #SAGAFTRA https://t.co/SDtrLzflB8
— Abigail Disney (@abigaildisney) July 13, 2023
Actor Anthony Rapp responded to Iger’s comments by saying “I don’t think it’s realistic for Bob Iger and other CEOs to make 27, 35, 200 million dollars a year and expect that the labor that allows them to make that kind of money demands fair wages.”
Anthony Rapp: "I don't think it's realistic for Bob Iger and other CEOs to make 27, 35, 200 million dollars a year and expect that the labor that allows them to make that kind of money demands fair wages." https://t.co/ZxyhOOnavK pic.twitter.com/JDqEvlY0VG
— Variety (@Variety) July 14, 2023
According to CNN, Alex O’Keefe, who wrote on the Hulu show “The Bear” responded to Iger’s comments saying he lived below the poverty line while working on the show and was severely underpaid.
The Huffington Post reports that Actor Sean Gunn — who many will recognize from his work on Guardians of the Galaxy — also chimed in saying “I think when Bob Iger talks about, ‘What a shame it is,’ he needs to remember that in 1980, CEOs like him made 30 times what their lowest worker was making…Now Bob Iger makes 400 times what his lowest worker is…and I think that’s a [] shame, Bob.”
Cosmic Rewind
Deadline shared an entire post full of more posts from Twitter from all kinds of individuals critiquing Iger for his comments on the strike. But it goes beyond that.
Selling Off TV Assets
During the CNBC interview, Iger also revealed that he’s considering BIG changes for the ABC network and more. During the interview, David Faber from CNBC suggested that Iger could sell some businesses in an effort to help Disney financially — things like ABC, cable networks, FX, and National Geographic. Iger replied that those brands may not be core to Disney.
Iger said, “We have to call it like it is.” He stated that, while those brands create content that is core to Disney, the business model is broken.
ABC Logo on Snack
When Faber asked what Iger’s plan was for these businesses — Iger said he’d let Faber speculate. But he also noted that Disney is being “very objective about their future” with the Company.
That has caused some potential stress as well. According to CNN, Bob Iger reportedly spoke at a meeting with some senior leaders in the TV business as his comments about certain linear networks not being “core” to Disney “immediately sent shockwaves through the industry.”
National Geographic Sharkfest Photo Op
CNN notes that employees have been experiencing “high anxiety” according to a source, and that Iger had not communicated with them directly since the interview, leaving them with many questions. That’s why he fielded questions from some of the senior company leaders in this meeting to “quell some of this unease.”
What’s Next?
Iger, who was once one of the most beloved CEOs in America, has certainly received a LOT of criticism lately and may have stirred up some anxiety in certain business areas. So what happens next? Well, we’re watching for updates on the stock values to see how that might reflect people’s confidence in the future of the brand.
We’ll also be watching to see if Iger comes out to make any follow-up statements about the strike that could impact things. Beyond that, Disney’s next earnings call is scheduled for Wednesday, August 9th, at 4:30PM ET. At that point, Iger might take the opportunity to address some of his previous comments and perhaps seek to turn things around. We could also see some financial results at that point that’ll impact Disney stock…in a good way, or a not-so-good way.
©Disney
We’ll keep an eye out for more news and let you know what we find. Stay tuned for the latest updates.
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The post How Bob Iger Went From Hero to Villain in 72 Hours first appeared on the disney food blog.
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