Bob Iger comments on his extended contract as Walt Disney CEO in memo to Cast Members

Jul 12, 2023 in "The Walt Disney Company"

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Bob Iger at Walt Disney World

Posted: Wednesday July 12, 2023 8:08pm ET by WDWMAGIC Staff

Disney CEO Bob Iger has written to Cast Members sharing the news of his contract extension which will see him lead the company through 2026.

In the memo, Iger says, "We’ve made important and sometimes difficult decisions to address some existing structural and efficiency issues, and I’m proud of what we’ve been able to achieve together. But there is more to accomplish before this transformative work is complete, and I am committed to seeing this through."

When Iger regained control of Disney from Bob Chapek in November 2022, his agreement with the board was to lead the company for two years and find his successor. Since his arrival, several high-profile executives have left, including one leading potential successor, CFO Christine McCarthy.

Bob Iger at Walt Disney World

We expect to hear more about his contract extension during a TV appearance with CNBC on Thursday morning.

Here is the full memo from Iger.

Dear Fellow Employees,

I want to thank you for your tremendous dedication, patience, and optimism as we’ve taken important steps to reposition the company for enduring creative and financial success. Since my return to Disney just seven months ago, I’ve examined virtually every facet of our businesses to fully understand the tremendous opportunities before us, as well as the challenges we face on numerous fronts.

We’ve made important and sometimes difficult decisions to address some existing structural and efficiency issues, and I’m proud of what we’ve been able to achieve together. But there is more to accomplish before this transformative work is complete, and I am committed to seeing this through.

To that end, I’m writing to share that I have agreed to the Disney Board’s request to remain CEO for an additional two years – through the end of 2026.

As I’ve said many times since we began this important transformation of the company, our progress will not be linear as we continue navigating a difficult economic environment and the tectonic shifts occurring in our industry. This is a moment that requires us to remain steadfast, strategic, and clear-eyed about the road ahead.

It is also important to me that Disney is strongly positioned when my successor takes the helm. As the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful CEO transition.

Through it all, I am unwaveringly optimistic about Disney’s future. I believe in this company. I believe in the leadership team I have around me. And I believe in you – our spectacular employees and Cast Members. It’s an honor to work alongside you as we chart Disney’s path forward together, and I look forward to all that we will continue to achieve over the coming years.

Thank you for all you do,
Bob

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MR.Dis22 hours ago

And remember, it is not valued as of today but as of the date they made the agreement. It already appears for all the smoke that Hastings was blowing, the value is not going to that much higher -- whatever value is decided Comcast gets one third minus of course whatever they already were paid. So on the high end it could be 3B, Hastings was making noises back in a day they could be getting 10+ billion more. Looks like he was drawing to an inside straight and we gamblers all know what happens in that case LOL.

_caleb1 day ago

Happy Profitability Day! https://finance.yahoo.com/news/disneys-streaming-business-turns-profitable-110153731.html

MisterPenguin2 days ago

The difference between the two valuations is about $12B. So, even using the highest valuation, Disney would be on the hook for paying Comcast another $3B. It could also mean nothing more if the third valuation was at the minimum.

ToTBellHop2 days ago

I’d be happy to independently value it for them and I only cost $50.

DCBaker2 days ago

Reuters reports Disney and Comcast are now in talks to hire an investment bank that will independently value Hulu. NEW YORK, May 6 (Reuters) - Walt Disney (DIS.N),and Comcast (CMCSA.O), are seeking to hire a financial adviser to resolve a dispute over how to value the 33% stake in streaming platform Hulu that the former will acquire from the latter, according to people familiar with the matter. The move is in accordance with a deal the companies struck for Hulu last year. It is an action their contract foresees if JPMorgan Chase (JPM.N), which provided a fairness opinion on Hulu for Disney, and Morgan Stanley, which provided such an opinion for Comcast, are too far apart in their valuation assessments. JPMorgan has valued Hulu for Disney at close to $27.5 billion, which is the floor valuation for Hulu that the companies had set as part of their 2019 "put-call" agreement, one of the sources said. Morgan Stanley valued Hulu for Comcast at more than $40 billion, another source said. Disney and Comcast are now in talks to hire an investment bank that will independently value Hulu, the sources said, requesting anonymity because the matter is confidential. Hulu, which boasts popular original titles such as "Shogun", "The Bear", "Prey", and "Only Murders in the Building", had 49.7 million subscribers at the end of Dec 2023, representing a growth of 2% from the September quarter. In remarks at a Goldman Sachs conference last year, Comcast CEO Brian Roberts called Hulu a "scarce kingmaker asset" that is "way more valuable today" than when the deal was initially struck. Disney has already completed the addition of Hulu to its Disney+ streaming service, which is home to titles such as "Moana" and "Frozen." In regulatory filings last year, Disney and Comcast had outlined that if the valuation reached by their two banks were within 10% of each other, a deal will be consummated at a valuation that is the average of the two appraisals. Since the two appraisals are more than 10% apart, Comcast and Disney are jointly in talks to pick a third bank to do an independent appraisal, the sources said. As per the terms of the agreement, if the third appraisal is closest to the valuation of that produced by Disney's bank, the average of those two valuations will be the value at which the deal gets done. Similarly, if the third appraisal is closest to the valuation of that produced by Comcast's bank, the average of those two valuations is the value at which the deal gets done. If the average of the third appraisal is below $27.5 billion, the final valuation will be $27.5 billion. In 2019, Disney and Comcast signed an agreement for Hulu with an option strike date of January 2024, after Disney's $71 billion takeover of Fox's assets, including its minority stake in Hulu. The deal gave Disney majority control over Hulu as it already owned a 33% stake in the streaming service. Comcast retained its stake in Hulu at the time believing that its value would increase significantly by 2024. In November last year, Disney agreed to take full control of Hulu and pay Comcast at least $8.6 billion for the remaining 33% stake, after Comcast triggered the deal as part of the 2019 agreement. https://www.reuters.com/business/media-telecom/disney-comcast-seek-advisor-resolve-hulu-valuation-sources-say-2024-05-06/

Sirwalterraleigh19 days ago

I’ve got a boot ready for the kick

JoeCamel19 days ago

They wanted to throw Bob out the window? ;) :cool::hilarious:

Sirwalterraleigh19 days ago

What are you two enlightened Renaissance men carrying on about?

Casper Gutman19 days ago

Turns out the anti-Peltz crowd did exactly what they said they would - they went back to criticizing Iger and skeptically discussing potential expansion plans.

James Alucobond19 days ago

I was promised gloating from the anti-Peltz faction but found only endless self-indulgent wallowing from those who wanted to defenestrate Iger at any cost. 🤷🏻‍♂️