Disney stock is at its lowest point since March 2020 and the fall might have something to do with a major shakeup inside the company’s top ranks. According to multiple reports, Disney fired Chairman of Disney General Entertainment Content Peter Rice and replaced him with top lieutenant Dana Walden.
Rice and Walden, who previously served as Chairman of Entertainment, joined Disney after the company acquired 21st Century Fox. Together, they have been doing a great job for Disney’s TV division and have been lauded across the industry for their efforts. But this obviously wasn’t enough for Rice to stay on his job.
Reportedly, Rice, who signed a new deal just last year, didn’t expect to be fired. He was notified about the decision on Wednesday in a short conversation with Disney CEO Bob Chapek. Sources close to the situation said that Chapek told Rice “he wasn’t a cultural fit” for the company. However, many believe the real reason behind his decision is that he felt Rice wasn’t 100 percent loyal to him and could represent competition in the future.
Disney stock hovered around $110 per share in early June but then dropped as low as $100.11 on Friday.