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Disney Needs to Fire CEO Chapek – Darlinez News.

<p> &lbrack;ad&lowbar;1&rsqb;<br &sol;>&NewLine;<&sol;p>&NewLine;<div>&NewLine;<div class&equals;"entry-content column content primary is-two-thirds">&NewLine;<div class&equals;"" style&equals;"padding-bottom&colon; 10px&semi;">&NewLine;<div class&equals;"">&NewLine;<p>&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<span class&equals;"tag is-dark is-uppercase">Media<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;p>&NewLine;<div class&equals;"byline-container">&NewLine;<div class&equals;"post-date is-italic has-text-grey is-size-7 has-text-weight-medium ">&NewLine;<p>November 10&comma; 2022 8&colon;30 am<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<p>Walt Disney Co&period; &lpar;NYSE&colon; DIS&rpar; stock could not have been beaten down any harder&period; After its earnings release&comma; the share price was blitzed&comma; dropping 13&percnt; to a 52-week low near &dollar;87&period; Disney has lost half its value in the past year and about &dollar;150 billion in market cap&period; CEO Bob Chapek has bungled Disney’s move into the streaming business&comma; an arena on which he has bet the company’s future&period;<&sol;p>&NewLine;<p>While the Disney&plus; streaming service added 12&period;1 million subscribers to total 164&period;2 million&comma; the division lost &dollar;1&period;47 billion&period; According to The Wall Street Journal&comma; this was 38&percnt; more than analysts had expected&period;<&sol;p>&NewLine;<p>Chapek will depend on subscription price increases for the streaming services and a new ad-supported version&period; However&comma; the chance of success is a guess&period; And the guess is complicated by similar strategies by Amazon&comma; Netflix&comma; Apple and a dozen others&period; While Netflix does not have the financial resources to fight competition at the balance sheet level&comma; Amazon and Apple have effectively infinite cash supplies and hundreds of millions of people who use Amazon for shopping and Apple for smartphones and computers&period; Business school professors would call Amazon and Apple’s advantages a huge &OpenCurlyDoubleQuote;installed base&period;” Disney has only its brand and a backlog of famous and popular content&period; Add to that the fact that Disney studios continue to pump out films&period; However&comma; so do the studios of Netflix&comma; Amazon and Apple&period;<&sol;p>&NewLine;<p>One analyst made the most important point about Disney’s streaming services&colon; &OpenCurlyDoubleQuote;We believe Disney may face a choice between its subscriber growth guidance and its streaming break-even guidance as we believe it may be tough to meet both&period;”<&sol;p>&NewLine;<p>Overall&comma; Disney’s growth slowed considerably in the final quarter of its fiscal year&period; Revenue rose 9&percnt; to &dollar;20&period;2 billion&period; However&comma; for the full year it rose 23&percnt; to &dollar;82&period;7 billion&period; Net income for the year rose 58&percnt; to &dollar;3&period;2 billion&period; In the final quarter&comma; this slowed as net income was flat at &dollar;162 million&comma; which is tiny based on Disney’s financial history&period; The only bright spot was Disney’s theme parks&period; Disney said this might have been better except for the effects of COVID-19&period;<&sol;p>&NewLine;<section id&equals;"email-subscribe" class&equals;"section section-email-sub single-email-sub"><&excl;-- div&period;svg-icon --><&sol;p>&NewLine;<div class&equals;"container">&NewLine;<div class&equals;"subscribe-message" style&equals;"line-height&colon; 1&period;3&semi;">&NewLine;<p>Get Our Free Investment Newsletter<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;section>&NewLine;<p>Chapek&comma; the engineer of these disasters&comma; tried to reassure investors&period; As Disney moves into its second century next year&comma; &OpenCurlyDoubleQuote;its best years still lie ahead&period;” Based on the share price&comma; no one else believes that&period;<&sol;p>&NewLine;<p>Chapek took over the chief executive role in February 2020&period; As the COVID-19 pandemic rocked Disney’s businesses&comma; former CEO Bob Iger became active enough that people wondered who was running the company&period;<&sol;p>&NewLine;<p>But Iger is long gone now&period; Chapek is the only person to blame for the Disney train wreck&period; If the board does not replace him&comma; the problems will only get worse&period;<&sol;p>&NewLine;<p>&Tab;&Tab;&Tab;&Tab;<&excl;-- &num;post-footer--><&sol;p><&sol;div>&NewLine;

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