In an abrupt move, Bob Chapek, Chief Executive Officer of Walt Disney Co., fired Peter Rice, the head of Television, for not being a team player. The decision got approval from the entertainment giant board with a rare public statement supporting the CEO.
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The 55-year-old Rice was the chairman of the entertainment content and oversaw vast areas of shows carried on the Disney network, including Disney Channel and ABC. Rice came aboard with the 21st Century Fox entertainment assets acquisition in 2019 and was considered a potential CEO for the company.
Chapek’s sudden firing of his colleague is the latest chapter in a tumultuous phase that saw his leadership being questioned over the past year. Chapek’s recent challenges included the high-profile dust-up with Ron DeSantis, the Florida Governor, over a law that limited discussion on sexual identity in classrooms.
The shares of Disney have declined by 33 % in 2022, more than double the decline of the S&P 500. Wall Street has been increasingly disillusioned with the ongoing losses incurred by the Television streaming business at Disney and the entertainment industry as a whole. The Disney stock crashed 3.8% Thursday in New York to $103.30.
According to the Chairman of Disney, Susan Arnold, CEO Chapek has the board’s backing. In an emailed statement, Arnold said that Chapel’s vision and leadership ensured that Walt Disney’s business came out strongly from the pandemic. The company is committed to staying on the path to business growth and transformation, and the CEO and his leadership team have the confidence and support of the board.
Chapek took over as CEO in February 2020, just before the pandemic started in March across the US. He took some unpopular decisions internally, such as taking away the authority from Rice for approving new TV shows and giving it to a group of Managers for focused distribution.
Dana Walden, who was earlier the chairman of the Walt Disney Television entertainment Division, will take over Rice’s role. She will report to CEO Chapek.
According to Chapek, Walden is a collaborative leader and a cultural force. They transformed the television business of Walt Disney into a powerhouse of content in three years and consistently delivered entertainment cravings to the audience.
