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Disney CEO Robert Iger arrives at the 92nd Academy Awards at the Dolby Theater in Hollywood, California on February 9, 2020.
Robin Beck | AFP | Getty Images
The Walt Disney Company He will extend CEO Bob Iger’s deal by two years, extending his tenure through 2026.
Iger told CNBC in February that he had no intention of staying more than two years in the position, which would have taken him until 2024. Iger returned to the company in November, taking back the position from Bob Chapek, who was named CEO early in 2020. Iger plans to groom a successor during his tenure as CEO.
On four different occasions between 2013 and 2017, Iger extended his tenure as CEO after saying he intended to retire.
The succession process remains a major issue for Iger, who noted in a statement Wednesday that the company’s board of directors continues to evaluate candidates for the position. “I want to make sure Disney is in a strong position when our successor takes the helm,” Iger said of his contract extension. “The importance of the succession process cannot be overstated.”
Iger’s second term at Disney coincided with turmoil in the legacy media space. Big players like Disney have had to deal with a rapidly changing landscape, as advertising dollars dry up and consumers increasingly cut cable subscriptions in favor of streaming.
However, it’s been difficult to navigate the broadcast space in recent quarters, as expenses have swelled and consumers have become more aware of their media spending. A slowdown in subscriber flow has lowered the ratings of Netflix, Disney and Warner Bros. Discovery and Paramount Global nearly halved in 2022 — before many stocks rebounded in the first half of this year along with the broader market.
It was Disney Programming pull of streaming services to save money.
The company is also trying to pull its animation business out of a big rut, as Pixar’s latest movie, “Elemental,” has scored Lowest opening weekend gross for the studio since the original “Toy Story” premiered in 1995.
Disney also recently ended it lay off 7,000 employees It saw the departure of veteran financial director Christine McCarthy.
“Bob has once again put Disney on the right strategic path for continued value creation, and to ensure that this transformation is successfully completed while also allowing enough time to hire a new CEO for long-term success, the board has decided that it is in the best interest of its kind,” said Mark Parker, Chairman of the Disney Board of Directors. Shareholders’ interest in extending his term, and he has accepted our request to remain CEO until the end of 2026.”
CNBC’s David Faber will interview Iger on CNBC’s Squawk Box at 8 a.m. ET Thursday.
— CNBC’s Alex Sherman contributed to this report
This story is evolving. . Please check back for updates
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