Disney names Robert Iger as CEO
By Heather Wilson, MarketWatch
Last Update: 9:17 AM ET March 14, 2005
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SAN FRANCISCO (MarketWatch) - Shares of The Walt Disney Co. rose in light pre-market trading Monday after the company's board named President Robert Iger chief executive officer.
Calling Iger "the best possible person for the job," Chairman George Mitchell said the newly named CEO combines the right blend of "continuity and a recognition of needed change."
Iger will succeed CEO Michael Eisner, who plans to step down on Sept. 30. The board stripped Eisner of his chairman title last March.
The stock gained 1.7 percent to $28.05 on Instinet.
Disney's (DIS: news, chart, profile) board met Saturday to discuss the search for a replacement CEO. The naming of Iger to the post had been expected after Eisner tapped him as his chosen successor several months ago.
Iger has been president of the media giant since 2000 and was an executive at Capital Cities/ABC Inc. before Disney bought it in 1996.
The board had hired a search firm to recruit external candidates, but found it difficult to attract people due to Eisner's support for Iger, according to reports.
One high-profile exec who was under consideration, eBay (EBAY: news, chart, profile) CEO Meg Whitman, withdrew her name on Friday.
Dissident shareholders Roy Disney and Stanley Gold on Thursday, issued a letter to the board asking them to stop allowing Eisner to sit in on interviews for his replacement. In their letter, the two former directors also called on the board to investigate the company's 2001 purchase of the Fox Family Channel.
It has been alleged that company executives covered up mistakes made in making the $5.3 billion acquisition.
On a call with reporters Sunday, Mitchell responded to questions about Gold and Roy Disney's claims that Eisner had dominated the recruiting process, calling the allegations "absolutely and totally false."
Mitchell said that Eisner was not involved in any interview with Iger and had only participated in part of a meeting with one external candidate.
He said that the board will now focus on its search for an independent director and his replacement. Mitchell has said that he plans to retire from the chairmanship at the next annual meeting.
In a statement issued Sunday after the Iger announcement, Gold and Roy Disney called on shareholders to replace the entire board and criticized the board's decision as a "breach of faith." The two stated the company needed a "clean break from the prior regime" and questioned why the board hadn't been able to find a suitable external candidate.
Goldman Sachs called Iger's appointment "a net positive reinforcing our already bullish view" and reiterated its "outperform" rating on the news.
By Heather Wilson, MarketWatch
Last Update: 9:17 AM ET March 14, 2005
E-mail it | Print | Alert | Reprint | RSS
SAN FRANCISCO (MarketWatch) - Shares of The Walt Disney Co. rose in light pre-market trading Monday after the company's board named President Robert Iger chief executive officer.
Calling Iger "the best possible person for the job," Chairman George Mitchell said the newly named CEO combines the right blend of "continuity and a recognition of needed change."
Iger will succeed CEO Michael Eisner, who plans to step down on Sept. 30. The board stripped Eisner of his chairman title last March.
The stock gained 1.7 percent to $28.05 on Instinet.
Disney's (DIS: news, chart, profile) board met Saturday to discuss the search for a replacement CEO. The naming of Iger to the post had been expected after Eisner tapped him as his chosen successor several months ago.
Iger has been president of the media giant since 2000 and was an executive at Capital Cities/ABC Inc. before Disney bought it in 1996.
The board had hired a search firm to recruit external candidates, but found it difficult to attract people due to Eisner's support for Iger, according to reports.
One high-profile exec who was under consideration, eBay (EBAY: news, chart, profile) CEO Meg Whitman, withdrew her name on Friday.
Dissident shareholders Roy Disney and Stanley Gold on Thursday, issued a letter to the board asking them to stop allowing Eisner to sit in on interviews for his replacement. In their letter, the two former directors also called on the board to investigate the company's 2001 purchase of the Fox Family Channel.
It has been alleged that company executives covered up mistakes made in making the $5.3 billion acquisition.
On a call with reporters Sunday, Mitchell responded to questions about Gold and Roy Disney's claims that Eisner had dominated the recruiting process, calling the allegations "absolutely and totally false."
Mitchell said that Eisner was not involved in any interview with Iger and had only participated in part of a meeting with one external candidate.
He said that the board will now focus on its search for an independent director and his replacement. Mitchell has said that he plans to retire from the chairmanship at the next annual meeting.
In a statement issued Sunday after the Iger announcement, Gold and Roy Disney called on shareholders to replace the entire board and criticized the board's decision as a "breach of faith." The two stated the company needed a "clean break from the prior regime" and questioned why the board hadn't been able to find a suitable external candidate.
Goldman Sachs called Iger's appointment "a net positive reinforcing our already bullish view" and reiterated its "outperform" rating on the news.