Walt Disney: Color on COO departure (98.69)
* FBR Capital, like everyone else, was surprised to see that Thomas Staggs is departing May 6 after looking like the heir apparent for CEO for the past year. This unexpected executive shuffle likely creates stress lines in the image of cool stability that has been the public veneer of Disney under current CEO Bob Iger. Clearly, that is a little concerning. Still, what matters is the end result. And Disney and Iger have two years left to figure this out and get Disney a new leader who can carry on in the successful track (particularly in movies) laid down by Iger.
* Topeka is very surprised by the departure of COO Tom Staggs and heir apparent CEO. They would surmise that in the near term, in order to assuage nervous investors, Mr. Iger likely extends his contract beyond 2018, and the DIS board will immediately gets to work on an extensive search for Mr. Iger's replacement. Names that likely make the short list are: 1. John Skipper, current heard of ESPN; 2. Anne Sweeney, ex-head of Media Networks, (now retired, but they wouldn't rule it out.); 3. Sheryl Sandberg, current Facebook (FB) COO; and 4. Ben Sherwood, current Media Networks co-chair.
--> DIS -2.3% premarket.