The Happiest Place on Earth has become the most chaotic, of late. After resigning his position as Disney CEO less than three years ago, Bob Iger is back at the helm, displacing a battle-weary Bob Chapek, who had renewed his contract in July. Perhaps an overwhelming win by Republicans in the Florida midterms was the final straw after Chapek found himself on one side of a political firestorm waged between the LGBTQ+ community and Governor Ron DeSantis. The House of Mouse did not win the skirmish.
Disney posted significant financial losses amid a public relations nightmare after it went all-in on promoting the "woke" ideology that alienates traditional family lifestyles. It seems Chapek chose the wrong hill on which to plant his flag. He made an enemy out of the popular Florida governor when he released a statement denouncing the Parental Rights in Education legislation championed by DeSantis. That was a flashpoint for the gay, lesbian, and transgender political activists who catchily reinvented the decree, referring to it as “Don’t Say Gay.” Disney went so far as to state its “goal as a company” is having the bill “repealed by the legislature or struck down in the courts.”
Not a great corporate strategy, one might say. But the kicker here is that Iger pressured Chapek to make a stand with phone calls and tweeting, “if passed, this bill will put vulnerable, young LGBTQ people in jeopardy.”
The Mouse Trap
Most corporations like having friendly folks in lawmaking seats, no matter which party is in control. Disney is a major donor to political candidates and issues on both sides of the ideological divide, and for years things have run smoothly for all involved. Then activists began throwing tantrums over nonsensical issues, and a handful of Disney employees joined the protests, so Chapek caved to the pressure. At that point, the tenuous friendship between the titans began to unravel.
But the unintended consequence of being woke was a wake-up call that Chapek didn’t foresee: DeSantis slapped the head Mouseketeer one last time. The Florida State legislature voted to rescind Disney World’s special zone, the Reedy Creek Improvement District, which was too painful for the Magic Kingdom to absorb. As special concessions go, this was a sweet deal that had been in place for decades:
“Enacted in 1967 by the Florida state legislature to lure tourism and economic development, the Reedy Creek Improvement District gives Disney 25,000 acres of self-governing authority. A board of supervisors, made up of five high-ranking Disney employees who each owns an undeveloped five-acre parcel, makes decisions on behalf of the kingdom. These bigwigs can levy taxes, write building codes, develop infrastructure, and build whatever suits them.”
To make matters worse for Chapek, the Disney+ streaming service reported an operating loss of $1.47 billion in the fourth quarter. Coupled with dwindling proceeds at the gates, poor publicity surrounding its “Pride” clothing line made in China, and having to fork over a hefty amount of corporate taxes, the company had to do something drastic. It did, in the form of laying off employees - whether LGBTQ+ or not. Earlier this month, Chapek issued this memo:
“I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.”
Bob Iger (Photo by Drew Angerer/Getty Images)
Enter Iger: A man focused on maintaining the Disney we knew a few years ago, skilled at exploiting friendships with politicians of all shades - and perhaps a tad savvier in the game of fence-riding. Just days after sending the memo of doom and gloom to executives and team leaders, Chapek was summarily booted from Club Mouse.
“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” said Susan Arnold, Disney board chairman.
Making DeSantis Happy Again
But can Iger save the day? A blind man could see the unwavering popularity that DeSantis has earned in his home state. He raised more money than any gubernatorial campaign in history - from regular Jills and Joes, big business, and billionaires alike - to the tune of $180 million. So, whether the Magic Kingdom agrees with all the governor’s policies or not, Iger would serve Disney well by roosting in the background on all things political.
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