shares of disney (DIS 6.81%) The company was on the rise today after announcing a surprise move to its CEO position last night.
Reintroduces Bob Iger to replace Bob Chapek after poor performance during Chapek’s tenure.
The stock is up 8.1% as of 10 a.m. ET on Monday.
Iger led Disney for 15 years before retiring as CEO in 2020 and is the architect of modern corporate strategy for the entertainment stock.Under his leadership, Disney acquired entertainment properties from Pixar, Marvel, Lucasfilm and Fox, significantly expanding its library of content and adding valuable intellectual property to the Marvel Cinematic Universe and Star Wars Movies and theme park rides.
Armed with its wealth of new content, Disney also successfully launched its Disney+ streaming service in November 2019, just before Iger’s departure.
Disney said Iger had agreed to serve as CEO for two years, “setting strategic direction for new growth and working closely with the board to lead the company upon completion of his term.” I have received a mandate from the board of directors to develop a successor.”
Chapek had the daunting task of leading the company through a pandemic that has shut down movie theaters and theme parks, but last year saw the stock price plummet as the streaming division lost cash and investors lost confidence in the company. remained sluggish. growth strategy.
As the chart below shows, Disney stock is S&P 500 During Chapek’s tenure.
Given Disney’s struggles last year and Iger’s stellar reputation with investors and Hollywood, it’s easy to see why the stock is on the rise today.
Investors shouldn’t expect a sudden move of Iger to the helm, but Iger could be the perfect person to lead the company in its transition from a linear media business to a streaming business.
The market seems to agree.
Jeremy Bowman holds a position at Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool recommends Walt Disney’s January 2024 $145 long call and Walt Disney’s January 2024 $155 short call. The Motley Fool’s U.S. headquarters has a disclosure policy.