After Disney announced the return of its former CEO Bob Iger, the company stock (DIS) surged as much as 9% in the early hours of Monday.
Iger’s return to the company will see him replace Bob Chapek who has already stepped down from the CEO position of the company, after his three years reign.
While speaking on his return to Disney, Bob Iger said, “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe, most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration.
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“I am deeply honoured to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling”.
Upon his return, few analysts at Wall Street predict that he will positively impact the company’s stock which declined during Chapek’s tenure.
Also speaking on Iger’s return, Wall Street analyst at Wells Fargo Steven Cahill disclosed that the former CEO’s return to Disney doesn’t really solve all the company’s problems.
However, he is positive that his presence will attract investors, noting that Disney has put one of the best leaders in media at the helm who will possibly shake things up.
Other analysts are optimistic that Iger’s charisma and intelligence will help navigate the company out of its current mess. “While Iger appears to be more woke politically than Chapek, his straightforwardness about his positions may serve the company better than Chapek’s fumbling”, an analyst said.
Iger’s recall back to Disney comes after Chapek’s Chaotic run for the company which saw him lead the company to post its first quarterly loss since 2001 of a whopping 1.5 billion dollars.
His tenure was riddled with controversy, from political battles and A-list talent problems, to controversial reorganizations. Reports reveal that Disney’s stock price fell by over 30 percent since Chapel took over as the CEO.
Insiders at the company disclosed that Chapek shouldn’t be surprised at his replacement, despite the fact that Disney’s board of directors unanimously voted in June to extend his contract for another three years through 2025.
They stated that he was hated by creatives, and according to them, he didn’t possess the acumen and creativity to effectively run the company.
Following Iger’s return to Disney, the company disclosed that he will serve as CEO for two years, with a mandate to “set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”
Iger was Disney’s public face for 15 years as chief executive, where he spent four decades and oversaw the acquisitions of Pixar, Marvel, and Lucasfilm. During his tenure, he also closed a $71 billion deal to buy most of 21st Century Fox before handing the job off to Chapek in 2020.
Iger has already resumed his duty as the CEO and has already sent a memo to the company’s employees informing them about his restructuring plans, as well as certain implementations that will be made.