Iger Stepping Down, Chapek Replaces

[Cup_Of_Coffee]

It's just hard to not speculate that something happened, whatever it is, controversial or not, something happened to cause this so quickly and so unnannounced.

 

[Nick]

Well, yeah. On a Tuesday three weeks after a quarterly earnings call. Plus the whole EFFECTIVE IMMEDIATELY thing. He can say transition but it ain’t a transition.

I mean, whether it is or isn't, I don't really care. It does sound like Chapek has been undergoing a process for quite some time where he had to be approved by the board and has spent a lot of time with Iger. An unofficial COO sort of.

I think Iger/the board chose the wrong person either way so I don't know how much it will matter. But all of this hysteria is comical to me. Obviously people like consistency and don't like to be surprised, especially Wall Street. To me, I guess I just don't care that much. I think Chapek will be a bad CEO, but I don't care enough to go searching for other reasons. Hopefully he ends up making a good CEO.

 

[MrRoamer]

This seems all seems really strange, especially after the whole Becoming an Imagineer that painted him in such a good light, I almost expected him to decide to stay longer with it.

The political thing seems like he's getting in too late and there is not a lot separating him from someone like Bloomberg. I also don't buy the Coronavirus impacts being a major reason for him stepping down. This thing is having worldwide impact and having a major project being there is a double whammy.

Maybe I'm trying to look on the bright side, but I think everyone will understand that this isn't some poor planning thing and is instead more of a disaster. I would expect people will look at it from a more positive angle that they suffered the storm better than anticipated and the CEO that brought them out of such dark days made good decisions regardless.

 

[Nick]

Maybe I'm trying to look on the bright side, but I think everyone will understand that this isn't some poor planning thing and is instead more of a disaster. I would expect people will look at it from a more positive angle that they suffered the storm better than anticipated and the CEO that brought them out of such dark days made good decisions regardless.

This is why I think it was optimal time to leave. Markets are down, coronavirus, uncertainty of an election year, Disney+/21C debt, etc. Chapek has all of that to actually use in his favor instead of going in with strong numbers and then sudden plummeting. If Chapek shows he can bring the company out of all of this, nobody will care how the transition was handled. On top of it, it lets Iger leave being remembered with a positive legacy.

 

[MrRoamer]

This is why I think it was optimal time to leave. Markets are down, coronavirus, uncertainty of an election year, Disney+/21C debt, etc. Chapek has all of that to actually use in his favor instead of going in with strong numbers and then sudden plummeting. If Chapek shows he can bring the company out of all of this, nobody will care how the transition was handled. On top of it, it lets Iger leave being remembered with a positive legacy.

Ah I was looking at it from the Iger side rather than the Chapek side, that does make sense. Except for the whole Chapek thing :bolt:

 

[Nick]

Ah I was looking at it from the Iger side rather than the Chapek side, that does make sense. Except for the whole Chapek thing :bolt:

I was actually looking at it 50/50. If you're Iger, why would you want to deal with all of that and if you're Chapek, it's a challenge, but you won't be fully blamed right away due to everything going on right now. Still can't believe Chapek got picked though.

 

[Mad Dog]

I was actually looking at it 50/50. If you're Iger, why would you want to deal with all of that and if you're Chapek, it's a challenge, but you won't be fully blamed right away due to everything going on right now. Still can't believe Chapek got picked though.

Chapek= Perfect example of business version of the 'Peter Principle'....Executives and/or bureaucrats in a hierarchy advance to their highest level of Incompetence .

 

[Parkscope Joe]

I mean, whether it is or isn't, I don't really care.

Then we're just going to endlessly disagree here, such a sudden turn over is not a good sign of organizational health.

 

[Nick]

Then we're just going to endlessly disagree here, such a sudden turn over is not a good sign of organizational health.

Maybe what the entertainment industry needs is for Disney to fall apart. I'm very ambivalent on this. I know if the company falls apart, it means prices will trickle down to customers, cuts happen, etc. That means i'll stop going to the parks and i'll stop buying Disney product. Simple as that. My life doesn't revolve around Disney thriving.

I just don't care enough to get worked up about hypotheticals. This is a perfect example of showing how people are averse to sudden change. I get that, but I also don't see the company burning down. I'd put money on the stock rebounding by the beginning of 2021.

 

[Cup_Of_Coffee]

If Chapek does to the WDC what he's done to the parks (cheapening and worsening the experience while making costs higher) than I do fear for Disney a bit. Maybe it won't "burn down" but they have soooooo many assets that they can't afford many major losses. Mulan is going to be a hit for them and likely loss of $200 mil, if not more. That's in large part due to China of course, but from what I know about Bob, except for Rise (which isn't his creative decision, finacially deciding to go all in on a Star Wars ride is a decision any of us could make), he produces the cheapest product he can. If he starts cheapening out Marvel films, D+ content, Star Wars content, people will know and be aware and adjust accordingly. We'll see if that happens, but for the most part audiences recognize quality, and recognize when quality has dropped off. That's what I'm worried about under Chapek. As a shareholder, he oddly makes me want to sell lol. I don't see long term practice in play at the theme parks, and he was in charge of those. So may as well benefit now from the Avengers and the new SW trilogy and peace tf out lol

 

[Grabnar]

I don't see long term practice in play at the theme parks, and he was in charge of those.

I agree, this is the sort of strategy that you see out of a Six Flags level executive - slash costs, increase prices, wait for the breaking point and back off juusssttttt enough that you're below the level of complete outrage in your consumers.

I'd wager the same thing happens with the films and TV in general.

Not to get too far into it, but this is definitely a better time to be a Universal fan than a Disney fan, in my honest opinion. We'll see how this shakes out post 50th anniversary, but I have a feeling that any investment that we're going to see in the WDW parks will be cookie cutter iterations of rides from other parks.

 

[Nick]

Not to get too far into it, but this is definitely a better time to be a Universal fan than a Disney fan, in my honest opinion. We'll see how this shakes out post 50th anniversary, but I have a feeling that any investment that we're going to see in the WDW parks will be cookie cutter iterations of rides from other parks.

How's that too different than what's going on right now? SW:GE, Rat, Tron, MMRR is being cloned to DL, etc. The only thing that we're getting that will likely stay unique is GotG: Cosmic Rewind.

 

[Cup_Of_Coffee]

Im not going to act like I understand the exact business Disney parks in Orlando make, or take up market %, and same for Universal, but, I will say this:

Universal seems to be the future of theme parks. They genuinely do. I understand I'm a Universal fan first, but I don't see anything in the horizon (announced, or unannounced) that Disney has to compete with the likes of Mario and Mario Kart. Those are 2 massively known entities amongst the general public and id have to think will bring even more crowds to Universal than they already have, and more importantly, taken away from Disney. I think 2023 and beyond could be an entire new world for Theme Parks. I think Universal is doing their damn best to totally change the theme park game, and under a Chapek reign, Im just not sure they're going to be able to compete at the same level. Idk maybe I just sound like a Universal die hard (although I am a Disney shareholder lol), but I just can't help but feel the public will eventually see this as well. Again, this may be a stupid take but the growth potential at Universal seems huge, while Disney seems to be capping out. Not sure about longterm optics there.

Alas, we shall see. Lets hope Iger reigns him in a bit on initial cost cutting.

 

[HHN Yeti Lover]

Im not going to act like I understand the exact business Disney parks in Orlando make, or take up market %, and same for Universal, but, I will say this:

Universal seems to be the future of theme parks. They genuinely do. I understand I'm a Universal fan first, but I don't see anything in the horizon (announced, or unannounced) that Disney has to compete with the likes of Mario and Mario Kart. Those are 2 massively known entities amongst the general public and id have to think will bring even more crowds to Universal than they already have, and more importantly, taken away from Disney. I think 2023 and beyond could be an entire new world for Theme Parks. I think Universal is doing their damn best to totally change the theme park game, and under a Chapek reign, Im just not sure they're going to be able to compete at the same level. Idk maybe I just sound like a Universal die hard (although I am a Disney shareholder lol), but I just can't help but feel the public will eventually see this as well. Again, this may be a stupid take but the growth potential at Universal seems huge, while Disney seems to be capping out. Not sure about longterm optics there.

Alas, we shall see. Lets hope Iger reigns him in a bit on initial cost cutting.

I have to agree, let’s not forget how shaken up Disney was after wizarding world. With the addition of EU, universal might reduce the crowds at Disney in the upcoming years.

 

[Mad Dog]

I see Disney pausing after these new expansions on the agenda are completed. They'll sit pat with what they have like they did prior to the Potter catch up phase they've just been in. Chapek doesn't impress me as one to start a slew of new D/E expensive attractions, or lands.,on his watch. D23 will become quite boring after this phase is completed.............Just a guess, of course.

 

[Grabnar]

How's that too much different than what's going on right now? SW:GE, Rat, Tron, MMRR is being cloned to DL, etc. The only thing that we're getting that will likely stay unique is GotG: Cosmic Rewind.

We are seeing some innovation, though. Despite being cloned elsewhere, ROTR and MMRR at least seem to try and make some new strides in ride tech. I think we're going to get what are essentially re-skins of existing rides (now with more IP!) ala the rumored Coco attraction, or rethemes of Remy-style trackless rides that are slapped together in the same manner that Univesal did their screen rides for the 2010s.

 

[Nick]

We are seeing some innovation, though. Despite being cloned elsewhere, ROTR and MMRR at least seem to try and make some new strides in ride tech. I think we're going to get what are essentially re-skins of existing rides (now with more IP!) ala the rumored Coco attraction, or rethemes of Remy-style trackless rides that are slapped together in the same manner that Univesal did their screen rides for the 2010s.

I'm not saying they aren't innovative, I was just throwing those in there because you said "the WDW parks will be cookie cutter iterations of rides from other parks". I took that to mean cloned attractions.

 

[Cup_Of_Coffee]

We are seeing some innovation, though. Despite being cloned elsewhere, ROTR and MMRR at least seem to try and make some new strides in ride tech. I think we're going to get what are essentially re-skins of existing rides (now with more IP!) ala the rumored Coco attraction, or rethemes of Remy-style trackless rides that are slapped together in the same manner that Univesal did their screen rides for the 2010s.

Ya this is what id expect. If anything the next "innovating" ride past Mickey and Minnie will be whenever they want/decide to bring over the Shanghai pirates ride system. Won't be for Pirates but im sure they're looking to use it elsewhere. But of course, with the Chinese parks shutdown, and Chapek now the head of it all, everything that has not been announced is a ? in my book for the moment.

 

[tielo]

Bob Chapek is a scumbag. Everyone I have ever talked to that knows him, worked with him, or knows someone that knows him hates this guy. He has a negative reputation across the company. Im talking people in various places he had nothing to do with before know he is bad news. I have worked for people like him before in parks and other businesses. His philosophy is that employees are cost taking away from profits and consumers not paying the max rate disney can get are leaches. Walt would be rolling in his grave that this dude is running the company. Chapek does not know how to make long term investments and get a good return because that would require actual planning. He is the guy that will run a brand into the ground and exit with a golden parachute.

Well he sounds like the perfect man because he embraces everything the company now stands for. And in the end it are the customers who gave the Disney company that power. They kept on going to the parks, spending more money while standing in line, eating the food, buying the souvenirs and staying in those overpriced hotel rooms.

 

[GadgetGuru]

I don't think we have to worry too much about Disney stalling expansion on the parks.

Universal is officially fighting them on almost every theme park front. Universal has a growing park in every place Disney has a resort (except Paris and HK).