Disney CEO Extends Contract; Successor Search Ongoing
We are maintaining our fair value estimate as Iger agrees to stay on at the wide-moat firm until July 2019.
The need for the extension arose from the forced resignation of former COO and heir apparent Thomas Staggs whom the board pushed out last April after refusing to designate him as the next CEO. While there have been a number of rumored candidates including board member and Facebook COO Sheryl Sandberg, CBS CEO Les Moonves, and former News Corp President Peter Chernin, no interviews or discussions with potential candidates have been leaked. We believe that the board is searching for someone with an entertainment background who is comfortable navigating a media landscape that is increasingly digital. However, there are not many candidates that fit these criteria who also have experience managing a firm as large and complex as Disney, thus the need for more time and the contract extension.
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