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Home , Bob Chapek, Bob Iger

cc Wednesday, February 26, 2020 latimes.com/news

New CEO is no Iger but he speaks fluent Disney Chapek is steeped in the culture and seen as focused, driven

By RYAN FAUGHNDER AND MEG JAMES TIMES STAFF WRITERs

Walt Disney Co.'s appointment of theme parks boss as its new chief executive, replac- ing , took Hollywood and Wall Street by surprise. The deci- sion, announced Tuesday, ended nagging speculation about the suc- cession plan for Iger. But the sudden move also raised new questions — why now, and why Chapek? Many analysts and Hollywood insiders had thought the job would go to Disney’s hard-charging di- rect-to-consumer chairman, Kevin Mayer, who oversees the compa- Bob Chapek, right, is Chief Executive Officer of Co., ny’s streaming efforts, including replacing Bob Iger, left. (Business Wire) Disney+, ESPN+ and . But the Disney board instead driven and passionate about Dis- having spent three decades im- chose Chapek, a 27-year veteran ney’s products and culture. mersed in the company’s brands of the Burbank-based company, As head of Disney’s parks, ex- and iconic culture. who brings a straightforward man- periences and products segment, In a call with analysts, Chapek agerial style and deep operational Chapek (pronounced Chay-peck) said his parents, a World War II experience across key Disney oversaw 170,000 employees and veteran and a working mother in businesses, including theme parks, led massive expansions with Hammond, Ind., took him to Walt consumer products, home enter- Wars attractions in Anaheim and Disney World in Orlando every tainment and . Orlando. His portfolio also includ- year. “That’s where I first devel- People who have worked with ed a global cruise ship business oped a deep love for Disney and Chapek said that he is focused, and toys. He speaks fluent Disney, all that it stands for,” he said. He’s now become only the seventh chief the much-anticipated live action company that bears his name, and executive in the 100-year history remake of “Mulan.” Phil Knight continued to stay in- of the company. Additionally, Chapek will have volved at Nike. Despite the surprise of the an- to deal with the pressure of living “Some of these guys acted more nouncement, analysts praised up to Iger, who is leaving on a like a returning general. If there Chapek as a logical choice. high note. Disney’s movie studio was a minor misstep, they made a “He understands the business posted a record year at the box of- triumphant return to power and from an international perspective, fice. Iger transformed the company glory,” said , an an operating perspective, the de- through acquisitions of , Mar- associate dean at the Yale School velopment side, and from a busi- vel, and 21st Century of Management. “Ideally, they ness perspective,” said Bill Coan, Fox. should be more of an ambassador, chief executive of Itec Entertain- Iger, 69, will remain at the com- and work as an elder statesman.” ment, a developer of theme park pany for nearly two years, oversee- Sonnenfeld said he thought Iger attractions and a former Walt Dis- ing creative endeavors as newly would give Chapek the space he ney Imagineering employee. “It’s appointed executive chairman, needs. “I think Iger will do quite been his job to take the Pixar meaning he’ll be very much still in well because he has other inter- brand, the Marvel brand and the the picture. Iger will also guide the ests,” Sonnenfeld said, noting that “” brand, and make it transition to Chapek, who will re- similar structures have worked function across all these business- port to him and the board. well at computer chip maker Intel es, and we think he’s been very “Bob’s leaving on top, with his and when Bill Gates turned the successful at that.” legacy intact. What happens from reins over to Steve Ballmer at Mi- Yet, the 60-year-old executive, here is on Bob Chapek’s watch,” crosoft. who studied microbiology in col- said Los Angeles investment bank- Iger, in the analyst call, said the lege and got an MBA from Michi- er Lloyd Greif. “And he’s facing a company has been involved in suc- gan State University, lacks direct tall order, with all of the challeng- cession planning for several years experience with two of the compa- es barreling down the track at Dis- and that the board felt comfortable ny’s most important segments: tel- ney. Iger’s a tough act to follow with Chapek. evision and streaming. Chapek fac- any way you cut it.” By announcing the transition in es several immediate challenges on Iger, in an interview with February, Iger blunted questions both fronts, including the expan- CNBC, downplayed any confusion about succession — and his large sion of its streaming services and or tension that may come from the pay package — that were likely to the continued erosion of the tradi- new structure, saying: “We’re not become topics at the company’s tional television business, long really concerned about that. Bob is annual shareholders meeting on fueled by ESPN profits. going to be running the company March 11. And while he’s held major roles and running the day-to-day busi- Still, the sudden shift under- on the business end of the compa- nesses.” scores what Iger believes is the ny’s film studio, he has not over- There is a long list of compa- most pressing need for Disney: seen the creative parts of movie- nies that struggled when a larger- shoring up its programming pipe- making. On the parks side, the than-life leader hovered around. line so that Disney’s trio of coronavirus is expected to hit prof- Starbucks’ founder, Howard streaming services will succeed. its at Disney’s parks in Shanghai Schultz, famously came back mul- He also mentioned that he wanted and Hong Kong, Disney has said. tiple times to lead the company. to spend more time working with The outbreak also has raised ques- Michael Dell found it difficult to TV and movie studio executives tions about month’s release of give up his role at the computer growing Hulu and ESPN+. “In thinking about what I want him as a straightforward manager In Iger’s 2019 , “The Ride to accomplish before I leave the who is not one to sugarcoat. of a Lifetime,” he describes rely- company the end of 2021, getting “If you’re not doing well, ing on Chapek during a confluence everything right creatively will be you’re going to hear about it, and of crises involving Disney parks the No. 1 — my No. 1 — goal,” if you’re doing well, you’re going when they were in China for the Iger told analysts. to hear about it,” said Jim Cora, debut: the shooting at the Pulse The company is not just relying former chairman of nightclub that killed two Disney on Disney+, which has found its International, who retired in 2001. employees, and an alligator attack niche with children’s programming “He’s creative, he’s industrious, he at a Disney resort that killed a and satisfying fans who crave new cares about the show, and he lis- young boy. Iger wrote that he told “Star Wars” and Marvel content. tens, and that says a lot.” Chapek to make sure that an ani- Instead, Disney recognizes the best Chapek joined Disney in 1993 mal attack like that would never way to take on Netflix is to build after stints in packaged goods with happen again. “We’re on it,” Hulu into a more formidable com- H.J. Heinz and the advertising in- Chapek said, according to Iger’s petitor, according to knowledgea- dustry with J. Walter Thompson. book. ble people. Disney already is steer- As president of home entertain- The parks job has come with ing new shows from the FX cable ment, Chapek spearheaded the some difficulties. The opening of channel to Hulu. company’s “vault” strategy — a the Star Wars: Galaxy’s Edge at- “Even FX, Disney’s strongest controversial but effective tactic tractions were well-received be- cable network that owns its con- that kept classic animated titles off cause of their immersive fantasy tent, is now producing its most video store shelves for long peri- realism. However, the company compelling content exclusively for ods of time. was criticized for its early efforts Hulu,” Richard Greenfield, media Amid a restructuring, he was to manage the expected influx of analyst and partner at Lightshed promoted to president of distribu- crowds, and initial attendance fell Partners, wrote Wednesday. “That, tion for Walt Disney Studios in short of expectations. honestly, says it all. Cable is in the 2009, putting him in charge of dis- Nonetheless, said Coan, the rear-view mirror.” tributing movies through theatrical company has shown an ability to Disney+ has gotten off to a exhibition, home entertainment, recover quickly from such stum- roaring start, reaching 28.6 million pay TV and digital platforms. Two bles. Indeed, reviews of the new paying subscribers since its No- years later, he became head of con- Rise of the Resistance ride have vember launch. Growing its sub- sumer products, focusing on build- been stellar. scriber counts has become critical- ing strategies around popular “While there may have been ly important, and already some brands. hiccups, they are aggressively analysts and consumers have com- “Chapek was running Disney’s overcoming those problems,” plained that they canceled Disney+ home video when it was VHS Coan said. “I would suspect after watching the eight episodes tapes — now he will be overseeing [Chapek] learned from those chal- of “.” The next the formation of Disney’s stream- lenges.” huge marquee series for Disney+ ing era,” Bernstein Co. analyst comes this summer with “The Fal- Todd Juenger said in a research con and the Winter Soldier.” report. Chapek is not viewed to be as As president of parks and re- charismatic as Iger, who has toyed sorts, he oversaw a massive expan- with the idea of going into politics. sion, including the opening of People who know Chapek describe in 2016.