DISNEY SHAKEUP: Bob Iger Returning as CEO, Bob Chapek Out; Board cites 'complex industry transformation' for shocking C-suite redesign

UPDATED with Bob Iger's full memo:

Bob Iger replaced Bob Chapek as CEO of Disney, a shocking turn of events for most largest media company in the world that has been in turmoil since Iger stepped down as CEO in February 2020.

The upheaval that surprised the entertainment industry and Wall Street was belatedly confirmed by the board of administration of Disney Sunday. There had been rumors of a reshuffle in the C-suite, but the prospect of Iger returning as CEO still seemed far-fetched. The turnaround is reminiscent of a situation a generation ago at Apple in 1997 when Steve Jobs returned to lead the company he co-founded after 12 years in the wilderness. Iger lost power as CEO for just under three years.

"We thank Bob Chapek for his service to Disney over his long career , including navigating the business through the unprecedented challenges of the pandemic," said Susan Arnold, Chairman of Disney's Board of Directors. "The Board of Directors has concluded that as Disney engages In an increasingly complex period of industry transformation, Bob Iger is uniquely positioned to lead the company through this pivotal time."

The news came as a shock to even Disney's top executives, sources said. 'industry. Staff members learned of the stunning reversal in the press release emailed by Disney's corporate communications team. The initial reaction from a number of employees contacted by Variety was skepticism that it was some sort of phishing scam or internet hoax. The shock was all the greater as the news was confirmed and the stranger-than-fiction reality imposed itself.

A number of top Disney executives were attending a pre-show reception at Dodger Stadium this evening for the Elton John farewell show, which aired live on Disney+, as the news broke around 6.45pm. PT. Disney and ABC executives were also out in force at the Microsoft Theater in Hollywood for ABC's live broadcast of the American Music Awards. Anecdotal reports indicated that there had been an exodus of top brass from the comfy seats of Dodger Stadium and AMAs around the time the email landed in the inboxes of Disney's 190,000 employees in the world.

Chapek's ouster follows a third-quarter earnings report that spooked Wall Street as content and marketing spending for Disney's direct-to-consumer platforms hit their expected high of $1.5 billion in fiscal 2022. Even though Disney had previously guided Wall Street to losses of this magnitude, and even though Disney+ saw subscriber growth for the quarter, the river of red ink still weighed on Disney's share price. Shares fell well below the $100 mark to $90 on Nov. 9, the day after Disney's aftermarket earnings report.

Iger's stealthy return to the top adds a dramatic finish to the soap opera that has captivated Hollywood for the past a few years. Iger, given his 15-year career that transformed Disney through acquisitions and high ambition, would invariably cast a big shadow over his successor. But in this case, there were reports of fights between Iger and Chapek almost from day one.

"I am extremely optimistic about the future of this great company and delighted that the Board of administration is asking me to return as CEO,” Iger said in a statement. "Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the world, and especially in the hearts of our employees, whose dedication to this company and its mission is inspiring. I am deeply honored to be asked to once again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through bold, unparalleled storytelling."

In a memo to staff posted Sunday evening, Iger explained his own sense of "astonishment upon returning to his old captain's chair (read full memo below).

"I know this company has asked so much of you over the past three years, and those times certainly still pretty tough, but as you've heard me say before, I'm an optimist, and if I've learned one thing from...