Bob Iger, who returned last week as CEO of Disney (DIS), told employees on Monday that he intends to maintain the company’s current hiring moratorium. He also reaffirmed the need for Disney to refocus its streaming business goal from subscriber growth at any cost to profitability. As shareholders of the club, we are pleased to see that Yeager is taking steps to right the wrongs of his predecessor. Iger’s comments at his first City Hall meeting since taking over from the fired Bob Chapek are in line with his previously released memo to Disney Media and Entertainment Distribution staff last week. In this correspondence, which came less than 24 hours after his rehiring, Yeager announced the departure of the band’s leader Karim Daniel. He also wrote: “In the coming weeks, we will begin implementing organizational and operational changes across the company. I intend to restructure things in a way that respects creativity as the heart and soul of who we are. As you know, this is a time of tremendous change and challenge for our industry, and our work will also be focused on building a more efficient and cost-effective structure.” We’re happy to see Eiger re-emphasizing that point on Monday. As Club members will remember, we started calling for change at the top after Disney’s disastrous financial results for its fiscal fourth quarter on November 8th. have to go. Almost two weeks later he was gone. While Chapek may have been a great cinematographer on the theme park side, Iger understands that creativity and storytelling are at the core of Disney. What’s more, Iger is clearly returning to his role with the understanding that while subscriber growth may have been a key indicator of streaming in a zero-interest world, it’s all about profit in the current climate. Previous management was simply too slow to respond to the rapidly changing operating environment as inflation soared and the Federal Reserve raised rates as aggressively as we have ever seen in response. We look forward to learning more about how Iger plans to restructure operations in the coming months, but for now, we think this decision to maintain the hiring moratorium and focus on creativity and storytelling as Disney’s primary growth engine is a good start. . The sooner Iger can show an improvement in terms of streaming profitability – or at least cut losses in the near term – the sooner we’ll see Disney’s share price rise. Shares fell about 3% in a falling market on Monday. They are down about 38% since the beginning of the year. We have a rating of 1 on Disney which means we are seeing stock buying at current levels. While it may take some time, we think the company is back on track and as a result, we believe the risk/reward ratio is incredibly beneficial for those who are willing to give Yeager a few quarters to show progress while he charts the path to success. streaming profitability. (The Jim Cramer Charitable Foundation is a long DIS. See the full list of stocks here.) As a CNBC Investing Club subscriber with Jim Cramer, you will receive a trade notification before Jim completes the trade. Jim waits 45 minutes after sending a trade alert before buying or selling shares in his charitable foundation’s portfolio. If Jim was talking about a stock on CNBC, he waits 72 hours after a trade alert is posted before making a trade. THE ABOVE INFORMATION ABOUT INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY RESPONSIBILITIES OR OBLIGATIONS ARE OR ARISING IN CONNECTION WITH YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
Bob Iger, former CEO of The Walt Disney Company
Scott Mlyn | CNBC
Bob Iger, who returned last week as CEO Disney (DIS) told employees on Monday that it intends to maintain the company’s current moratorium on hiring. He also reaffirmed the need for Disney to refocus its streaming business goal from subscriber growth at any cost to profitability. As shareholders of the club, we are pleased to see that Yeager is taking steps to right the wrongs of his predecessor.
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