Walt Disney Co. shares rose the most in almost two years after the entertainment company brought back former leader Bob Iger to replace his successor Bob Chapek as chief executive officer, a surprise capitulation by the board after a string of disappointing results.
Iger, 71, who spent more than four decades at Disney, including 15 years as its CEO, has agreed to serve for two years and will help find a permanent replacement, according to a company statement. Chapek, 62, is leaving effective immediately.
Disney jumped as much as 9.9% Monday, the biggest intraday gain since December 2020, after falling 41% this year through Nov. 18. Analyst Michael Nathanson raised MoffettNathanson’s rating on the stock to outperform from market perform, applauding Disney’s board for taking action. Shares were most recently trading up 6.2% at 12:02 p.m. in New York.
Iger will be charged with reversing the steep decline in Disney’s shares, which are headed toward their worst annual loss since at least the 1970s. He’ll need to rein in Disney’s spending on programming for streaming video while reigniting growth for the Disney+ service, all while managing a declining cable-TV business.
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