CNBC Exclusive: Disney CEO Bob Iger 7/13/23

SPEAKER_1 (0:00)

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David Faber (0:35)

We are joined by Bob Iger, of course, the CEO of Walt Disney, of Disney here in Sun Valley. Thank you for being here.

Bob Iger (0:43)

Morning, David.

David Faber (0:44)

Good morning. Why are you staying?

Bob Iger (0:49)

Well, let me start with the fact that I did like retirement. I highly recommend it, by the way.

David Faber (0:55)

You're never gonna get to it, Bob. I mean, you did it for 11 months, and that was it.

Bob Iger (1:00)

It was a good 11 months, and I came back to the company at the request of the board. It was a company that I started working at in 1974, 49 years ago when it was ABC, and we became part of Disney. And I obviously have deep passion for the company and the business, and I care a lot about the people.

And after coming back, realized that the company was facing a number of challenges, some self-inflicted, some caused by changes in the business, large-scale disruption of certain parts of the business. And while a lot of work has been accomplished in the seven or so months that I've been back, the board believed, and I agreed with them, that there was a lot more work to do. And the timetable that we had initially established, which was two years, seemed like it was putting undue pressure on us, even though we're getting at the work really quickly, but to accomplish everything we want to accomplish. So part of it was designed for continued stability and continuity, and also to give a team of very talented executives who work with me, time not only to help me through what is a challenging period, but to develop themselves.

David Faber (2:07)

Yeah, we sat down in February, you'd been back a couple of months, and I did ask you if two years was too short a time, and you said, quote, You can get things done very quickly. Setting the company up for success is what you were talking about. So I wonder, did something change in your calculation of how quickly you can get things done?

Bob Iger (2:27)

Well, we've gotten a lot done very quickly. Significant cost reductions, a complete realignment of the company in terms of its structure, some major changes in terms of personnel, dealing head-on with some of our biggest challenges and also looking for opportunities. I actually am quite pleased, as is the board and the team, with how much we've accomplished in a short period of time, but there are a lot of challenges out there, and there's just so fast you can go with certain things, and in some cases, the market has to cooperate. In many respects, some of these businesses are still recovering from COVID, for instance, dealing with some complexities in terms of continued disruption, as I mentioned, which we'll talk about.

But I'm pleased with how much we've gotten done, but I also know how much we have to get done.

David Faber (3:12)

Right, so is it more challenging than you'd anticipated? Is the business sort of more challenged than when you returned late last year?

Bob Iger (3:21)

Yes, it doesn't mean that I am any less enthusiastic about the opportunities, and nor am I less enthusiastic about the company. In fact, the opposite. I'm extremely optimistic about the company and its assets, and we should talk about them.

David Faber (3:33)

We will.

Bob Iger (3:34)

But I would say that in some cases, the challenges are greater than I had anticipated.

David Faber (3:40)

In what way?

Bob Iger (3:41)

Well, I think that we talked a few times about it over the years, but the disruption of the traditional television business probably is the most notable.

I predicted when I was out of the company, I made a statement about the future of the multi-channel ecosystem, I think, as I described it, being very pessimistic. And I must say that that prediction that I made was actually accurate. If anything, I'd say that the disruption of that business has happened to a greater extent than even I was aware, as a for instance. That'll be reflected and has been in some of our near term results.

That said, there are other elements of the business that I have huge optimism about. For instance, Parks and Resorts, which is just a tremendous business for us.