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Why Wall Street Is Unhappy (for Now) With Disney’s CEO Change

Why Wall Street Is Unhappy (for Now) With Disney’s CEO Change

We all knew the end was coming. Bob Iger had promised, time and again, that the end was coming. But the rather abrupt announcement Tuesday afternoon that he would relinquish his longtime role as CEO of the Walt Disney Co. — and that theme parks head Bob Chapek would succeed him at the top of the Mouse’s big machine, effectively immediately — nevertheless knocked the wind out of everyone in Hollywood and on Wall Street.

Shares tumbled on the news in after-hours trade Tuesday and carried over to Wednesday’s regular session, dragging Disney’s stock down 3.8% and outpacing the broader market’s dip as it attempted to bounce back amid coronavirus fears.

Chapek is a seasoned, well-liked, 27-year Disney veteran. The industry had long known that the end of Iger’s reign was approaching. So what happened?

1. The Timing Was Unexpected — and Possibly Unplanned?

Given that Iger’s contract doesn

See full article on Variety