Disney, under the leadership of Bob Iger, is facing mounting pressure to redefine its strategy in a rapidly changing media landscape. In an effort to navigate these challenges, Iger has hired former top Disney executives Tom Staggs and Kevin Mayer as consultants for the company. With their extensive experience both within and outside of Disney, it is expected that Staggs and Mayer will offer valuable insights not only into ESPN, but also across other areas of the company.
An insider familiar with the situation reveals that Staggs and Mayer will specifically focus on evaluating ESPN. As linear television continues to evolve and face new challenges, Iger recently made a thought-provoking statement in an interview with CNBC suggesting that it may not be a core part of Disney’s business. While exploring strategic options for linear TV, ESPN remains an important asset, with Iger emphasizing that sports programming still holds a prominent position in the TV landscape. Disney has even positioned ESPN as its own corporate division and has plans to launch a direct-to-consumer streaming service for ESPN in the near future.
Tom Staggs, a well-liked figure within Disney, had a strong tenure at the company, serving in various roles such as chief financial officer, chief operating officer, and head of parks. It was widely believed that Staggs would eventually assume the top job once Iger stepped down, but he was ultimately passed over and left the company in 2016. Kevin Mayer, on the other hand, rose through the ranks at Disney, starting in strategy planning before leading the direct-to-consumer and international operations, including the successful launch of Disney+. Despite being considered a frontrunner for the CEO position, Iger surprised Wall Street and Hollywood by appointing Bob Chapek as his successor in 2020. Mayer then took on the role of CEO at TikTok but left amidst legal challenges faced by the Chinese-owned platform.
Candle Media and Expanding Content Portfolio
Staggs and Mayer, who have been longtime friends and colleagues, founded Candle Media in 2021 with the backing of the Blackstone Group. Over the past several years, Candle Media has rapidly built an impressive content portfolio, including Hello Sunshine and Moonbug. This positions them as valuable consultants for Disney, bringing their expertise in content creation and distribution to the table.
Despite extending his contract, Bob Iger still needs to name a successor as CEO for Disney. Additionally, the abrupt departure of Christine McCarthy as CFO has left another key position vacant. Wall Street has frequently mentioned Staggs and Mayer as potential replacements for Chapek as his leadership faced challenges. While there is hope among investors that the advisory roles could lead to broader positions within the company, it remains uncertain at this point.
In late morning trading, Disney stock is up 3.10%, outperforming the broader market. The hiring of Staggs and Mayer as consultants has sparked interest and optimism among investors. As the consulting duo begins their work, the future of Disney and its strategy awaits further developments.
*This article is based on information from The Puck*
Leave a Reply