Home Disney Entertainment Discrepancies in Chapek’s Budget now reveal reasons for his swift exit

Discrepancies in Chapek’s Budget now reveal reasons for his swift exit

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Discrepancies in Chapek's Budget now reveal reasons for his swift exit
Credit: Disney

Curious about what led to the swift exit of former Disney CEO, Bob Chapek? Check out the budgetary discrepancies that led to his swift exit.

Bob Chapek’s Quick Exit

Credit: The Walt Disney Company

When Bob Iger retired in February 2020, Bob Chapek took his place as CEO of The Walt Disney Company. He took charge right before the parks closed in March 2020. Chapek has been in charge for over two years, overseeing the parks, entertainment, and more. During this time, many guests and Cast Members questioned the direction in which he led the Walt Disney Company. 

After recently renewing Chapek’s contract to end in 2025, the Disney Board replaced Bob Chapek as CEO and will replace him with his predecessor Bob Iger for two years. The morning after Bob Iger’s return, Disney stocks were on the rise.

The very quick timeline was a bit surprising for Disney fans, but a poor quarterly earnings report was the final straw and forced the board to replace Chapek. Part of this poor earnings was tied to Disney+ which led to the quick firing of another Disney executive less than 24 hours after Bob Iger’s return.

Budget Discrepancies

Credit: KtP

It now appears that Bob Chapek may have attempted to make Disney+ look more profitable than it really was. According to the Wall Street Journal, it appears that Disney+ originals such as “The Mysterious Benedict Society” and “Doogie Kamealoha, M.D.” were originally aired on Disney Channel and fellow networks.

It is suggested that a debut on other networks would not count against the marketing budget of Disney+. This could allow Disney+ to appear more profitable than it actually was while still offering “original content.” According to Chief Financial Officer, Christine McCarthy, she was “concerned about this strategy.”

Credit: Disney

Bold claims were made by Bob Chapek that the Disney+ bundle (Disney+, Hulu, and ESPN+) would be profitable by 2024. According to the LA Times Disney, “reported an operating loss of nearly $1.5 billion, more than doubling its loss of $630 million during the same quarter a year earlier.”

It is suggested that a debut on other networks would not count against the marketing budget of Disney+. This could allow Disney+ to appear more profitable than it actually was while still offering “original content.”

What do you think of this budget discrepancy? Do you agree with the decision for Bob Chapek’s quick exit? What do you think of the content offered on Disney+? Share your thoughts with us on our Facebook Page.

18 COMMENTS

  1. My dear Liz. This inclusivity is nothing but a man made construct of weirdos. What you are thinking is equality is really the doors of the insane asylum being opened. Mental illness and emotional issues are being normalized. When a child is let believe they are really a cat, and teachers and adults promote their illusion, what do you think will happen to that child later in life. We are destroying lives in making them equal. The future for all the 180 supposed definitions of supposed identity is nothing more than a weakened moral societal construct that has no idea who they really are. None of this is healthy, it is a destructive emotionally disasters future of confused humanity that will not be able to function let alone contribute to a healthy and prosperous society.It is not even taking into account the criminals prescribing dangerous drugs inhibiting hormones of growing children. The physical damage over the next few decades, if not stopped, will leave a damagingly immoral mark on humanity in the future. Your insistence in believing this is all about inclusion is nothing more than the destruction of human life.

  2. Give me an effing break, Harold. No one is forcing anything down your gullet. I bet you can’t stop staring. If you disagree or dislike it, just look away. Plain and simple. I’m so tired of people harping on about “woke” this and that as though it is literally killing them that they can’t be the only type of people represented in the world. There are many other types of people out there and I’m so glad that I’m finally seeing inclusivity and equity EVERYWHERE in the world, including Disney.

  3. The woke agenda was the epicenter of their sales slowdown. I wondered why the losses were not huge, the amount of negativity about programing and alphabet people promotion was very loud and clear. Now we know the losses were really there and our assumptions were correct.

    It takes a long time to create a loyal brand and a few bad decisions and wokeness pushed on fans only serve to crash loyalty quickly.

    This is a family branded enterprise. Throwing in their woke sheit was inane. I have to believe Bob’s personal life may be a hidden alphabet lifestyle and the reason for his insane woke agenda.

  4. You’re absolutely right. Chapek didn’t do anything different than countless other CEOs have done, and they always cannibalize long term for the short term. The problem Disney has is that long term was built by decades of customer goodwill that isn’t easy to rebuild, except for decades, assuming that Disney could survive that long. Disney isn’t a good short term profits type of company. It was largely built by its family friendly reputation and reinforcing that reputation over time. Now to be fair, that reputation credit was being spent under Iger before Chapek cranked the volume to 11. Iger has to do some serious repair jobs just to right the ship. Maybe stop the remakes and half assed movies and get decent creatives making movies again that everyone wants to see, not just some segment of the Twitter vocal population. Maybe he turns back thr Splash mtn rethemeing, even though he greenlit it himself. Some major big “splashy” (no pun intended) moves to get the narrative while he still has the returning to save the company shine on him can do alot more now than announcing it later.

  5. I totally disagree. First, the CFO would have been involved all of these decisions. Second, as others have mentioned, this kind of stuff is standard Hollywood business practice. It’s been known since the Iger regime that this kind of shell gave was going on. There was a whistleblower from 2017 they just settled with. Third, Chapek was fired without cause, meaning there was no reason for them they could disclose that they fired him, this would be cause but that was probably done to get him to sign a NDA for his package. McCarthy was an Iger leftover/plant and she was probably neck deep in this, advising how to perform this shell game . Finally, this is the second “reason” why Chapek was fired meaning we’re still not getting the real reason. Given that there are now rumors that Disney might be sold to Apple, there is way more to this than the official narrative.

  6. Disney needs to stop pushing the LGBTQ content on the families and their kids if they want people to come back. They don’t want that thrown in their faces. They are going against peoples family values and morals.

  7. Not fraud, but definitely not in line with Disney financial management policy and norms, not inline with how CFO’s and CEO’s of Disney have managed finances/budgets in the past …not transparent to the Board and shareholders and not intellectually honest or ethical… a CFA could lose their Charter for going along with this behavior….. hence it was the CFO that alerted the Board about this bad switch in financial management and transparency… and the Board acted quickly…

  8. Chapek’s financial strategies were no different than the strategies of other CEOs I have worked with. In many companies, C-Suite executives rarely stay more than a few years. The incentives are regularly set to satisfy short-term goals. Unfortunately, this often hurts companies in the long run. Let’s hope that Iger can see the long run vision for Disney again. I believe that Iger does care about his legacy. Chapek would have destroyed the Disney most people know and love if he had been allowed to continue with his policies.

  9. It’s technically not fraud as long as it’s accounted somewhere. It would be fraud if they were trying to write off fake losses for tax purposes or take out loans on fake gains. Though this is they first thing they teach you not to do in MBA programs because of you can’t cover the losses it affects budgets for the departments that have money moved around.

  10. We were promised the vault at its introduction. Several older movies have not made it to streaming. Several cartoons and shorts are missing. And the fans REALLY want to see Walts wonderful world of Disney again. We are waiting….

  11. Chapek was renowned as a micromanager of finance during his tenure as the head of Disney Parks & Resorts. Example: Managers were issued directions to pull expenditures forward or push them into future quarters depending upon business climate. Mostly, this was done to help buffer the effect of expenses on the bottom line when revenues for an upcoming quarter were expected to be down. Fraudulent? Not likely. Disruptive and inefficient micro-managing? 100%!

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