CEO of Walt Disney (NYSE: DIS), Bob Chapek, is set to extend his contract for three more years at the media entertainment giant after the company’s board backed the 62 years old in a unanimous vote.
Shares of the entertainment company fell on Wednesday following the announcement.
Market Disagrees With the Disney Board
Chapek took on Disney’s top role back in 2020, replacing Bob Iger just prior to the coronavirus outbreak, which has battered the company’s business. Chapek’s current contract was due to expire in February 2023.
“Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses – from parks to streaming – not only weathered the storm, but emerged in a position of strength,” said Susan Arnold, chair of Disney’s board.
“Bob is the right leader at the right time for The Walt Disney Company, and the board has full confidence in him and his leadership team,” he added.
Many in the industry have been skeptical over the past few months about whether Disney will extend Chapek’s contract after he faced backlash from employees by initially refusing to stand up to legislation that restricted LGBTQ discussion in schools.
After Disney’s employees condemned the bill, lawmakers in Florida decided to end Disney’s self-governing status for Walt Disney World in Orlando. The bill is yet to come into effect. In addition, Chapek made another unexpected decision earlier this month after he removed the popular TV executive Peter Rice earlier this month.
Before becoming Disney’s boss, Chapek was head of Disney’s theme park and consumer products units.
The media and entertainment giant has been increasingly focused on growing its streaming service, Disney+, which reported 137.7 million global subscribers as of March. Disney’s objective is to have between 230 million and 260 million Disney+ subscribers by September 2024, a major challenge for the company given the very fierce competition in the streaming space.
‘Disney Parks Around The World’ Sold Out
Meanwhile, Disney’s $110,000 private jet trip to all of its Disney parks around the world has been sold out, with the company nabbing a total of $8 million in sales.
The adventure, dubbed Disney Parks Around The World – A Private Jet Adventure by Adventures by Disney, sold out before the tickets went on sale for the general public. Pre-sales for the trip to all Disney theme parks around the world went on sale on June 20 for Adventures by Disney regulars who booked all the available tickets before the on-sale date for the general public, which was scheduled for June 28.
As a result, the guests that want to take part in the trip are now asked to join the waitlist.
“We’re told that demand among those residents and members far exceeded available slots, and there’s already a lengthy waitlist for guests who are interested in booking the experience,” according to the Disney Tourist Blog.
The 24-day luxury trip is set to start at Disneyland and take the participants to each of Disney‘s 12 theme parks around the world including Anaheim, Florida, France, Shanghai, Hong Kong and Tokyo. Furthermore, the company will also take the guests to visit some of the world’s biggest historical landmarks such as the Eifel Tower, Taj Mahal, and more.
This spectacular trip is scheduled to last from July 9 to August 1 in 2023 and will take the travelers to a total of 31 sites. The 75 participants will travel around the world in a luxurious Boeing 757 private jet with unique long-range capabilities, a personal chef, and a physician.
It is clear that this once-in-a-lifetime trip targets Disney’s most loyal, wealthy customers who don’t mind spending a hundred thousand dollars to participate. To be more specific, the starting price for the journey stands at $109,995 per person.
Summary
Disney shares moved lower this week after the company’s board extended incumbent CEO Bob Chapek for three more years. With shares down roughly 40% YTD, investors are skeptical that Chapek is the right person to turn Disney around.
