LOS ANGELES: Bob Iger is returning to Walt Disney as CEO less than a year after he retired, a surprise comeback that coincides with the entertainment company’s attempt to boost investor confidence and profits at its streaming media unit.
Iger, 71, who was CEO for 15 years and retired as chairman last year, has agreed to serve as chief executive for two more years effective immediately, Disney said late on Sunday. He will replace Bob Chapek, who took over as Disney CEO in February 2020 just as Covid hit, leading to park closures. Disney stock jumped 8% intraday, valuing the company at about $180 billion.
“Maybe the old hand on the tiller is what’s required,” said Markets. com analyst Neil Wilson as the company spends billions of dollars to compete with rival Netflix and seeks to revive its share price.
The stock has sunk more than 40% so far this year, lagging the nearly 7% year-todate drop in Dow Jones. It lost almost a third of its value while Chapek was at the helm. Disney disappointed investors this month with an earnings report that showed mounting losses at its streaming media unit that includes Disney+. Shares hit a 20-year low the day after the fourth-quarter earnings.
During this second stint, Iger has been charged with “setting Disney on a path to renewed growth”, the company said.
Iger, 71, who was CEO for 15 years and retired as chairman last year, has agreed to serve as chief executive for two more years effective immediately, Disney said late on Sunday. He will replace Bob Chapek, who took over as Disney CEO in February 2020 just as Covid hit, leading to park closures. Disney stock jumped 8% intraday, valuing the company at about $180 billion.
“Maybe the old hand on the tiller is what’s required,” said Markets. com analyst Neil Wilson as the company spends billions of dollars to compete with rival Netflix and seeks to revive its share price.
The stock has sunk more than 40% so far this year, lagging the nearly 7% year-todate drop in Dow Jones. It lost almost a third of its value while Chapek was at the helm. Disney disappointed investors this month with an earnings report that showed mounting losses at its streaming media unit that includes Disney+. Shares hit a 20-year low the day after the fourth-quarter earnings.
During this second stint, Iger has been charged with “setting Disney on a path to renewed growth”, the company said.
