Disney fires TV content chief Peter Rice in abrupt shakeup as board backs CEO Bob Chapek

LOS ANGELES – Disney has abruptly fired Peter Rice, its most senior television content executive, multiple sources told CNBC Thursday, while the company’s board expressed support for CEO Bob Chapek.

Rice, who came to Disney in 2019, after the company finalized its deal to buy 21st Century Fox, didn’t know the firing was coming, according to another person with knowledge of the matter. It was not immediately clear what led to Rice’s sudden departure from the company.

Rice was seen as a possible candidate to succeed Chapek as Disney’s chief executive, a person familiar with the matter said. Rice is well-liked and respected in Hollywood, and his ouster is “unheard of” and “sizeable,” the person said.

Dana Walden, who also made the transition from Fox to Disney, will take over his duties, effective immediately. The firing comes as Disney is aggressively working to expand its streaming audience, a major priority of Chapek’s. Rice oversaw 20th Television, ABC Entertainment, ABC News and FX, among other brands.

Rice, who has more than three decades of experience in the entertainment industry, has clashed with Disney executives. He fought former Disney head of streaming Kevin Mayer about organizational powers, such as who controlled the ability to greenlight shows, for instance. While generally well-liked personally, he’s irritated some coworkers at Disney for monopolizing information rather than sharing it with coworkers – a style that may have worked at Fox but was ill-fitting at Disney, according to a person familiar with the matter.

Still, Rice supported Chapek’s organizational changes, which gave him back the power to have direct conversations with Hollywood talent about whether Disney would choose their work, another person said. Rice’s contract was re-upped in August 2021 and set to run through 2024. Rice was given an undisclosed payout, a person familiar with the matter said.

Rice did not immediately respond to CNBC’s request for comment.

Disney’s board said Thursday it backed Chapek, who delivered the news to Rice earlier this week – and who has contended with several controversies since he took over for ex-CEO Bob Iger.

“The strength of the Walt Disney Company’s businesses coming out of the pandemic is a testament to Bob’s leadership and vision for the company’s future,” Susan Arnold, chairwoman of Disney’s board, said in a statement. “In this important time of business growth and transformation, we are committed to keeping Disney on the successful path it is on today, and Bob and his leadership team have the support and confidence of the board.”

— CNBC’s Julia Boorstin contributed to this report.