The Big Q: Will Disney (NYSE:DIS) Look Outside For It New Boss
$DIS, $FB
The sudden departure of Thomas Staggs as Walt Disney Company’s (NYSE:DIS) COO Monday has open the race to succeed Bob Iger at the entertainment giant.
It is now thought that Disney will look outside its ranks for a new leader to guide the company through an era of big changes in the entertainment landscape.
Wall Street does not like uncertainty and hiring someone from outside after they have passed over the heir apparent adds uncertainty.
Investors responded negatively to his exit, pushing Disney’s stock down to 96.83 at the close Tuesday.
The difficulty with finding someone to fill Iger’s shoes is that the Disney job requires a variety of expertise. Its vast holdings include gaming, film, television, theme parks, and merchandising.
In the aftermath of the Thomas Staggs announcement, speculation arose that Facebook (NASDAQ:FB) COO Sheryl Sandberg. 46 anni, a Disney board member, could be an attractive successor, and she has the Silicon Valley bona fides to help Disney adapt to the digital era.
The rise of streaming services and online forms of entertainment have soured investors on companies like Disney that rely heavily on the pay television business for their profits.
As cable loses subscribers that threatens the financial underpinnings of ESPN, the sports channel widely considered to be one of the crown jewels of its holdings. Meaning that the company cannot wait long before they signal that they have figured out the next generation of leadership.
The company needs someone who can help figure out what appears to be significant changes in the multi-channel landscape.
There is also the chance that the Thomas Staggs’ exit sets the stage for Mr. Iger, who has already been at the helm for over 10 years, to extend his contract postponing the inevitable shakeup a the top of one of the biggest companies in entertainment.
| Symbol | Last Trade | Date | Change | Open | High | Low | Volume |
| NYSE:DIS | 96.83 | 5 Apr-2016 | -1.85 | 96.85 | 97.61 | 96.15 | 7,375,202 |
| HeffX-LTN Analysis for DIS: | Overall | Short | Intermediate | Long |
| Neutral (-0.19) | Neutral (-0.16) | Bearish (-0.25) | Neutral (-0.17) |
Stay tuned…
HeffX-LTN
Paul Ebeling
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