Disney brings back Bob Iger as CEO in a bid to boost growth
Bob Iger is returning to Walt Disney (NYSE: DIS) Co. as chief executive 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, who retired last year after 15 years as chief executive, has agreed to serve as CEO for two more years effective immediately, Disney said in a statement late on Sunday. He will replace Bob Chapek, who took over as Disney CEO in February 2020, just as the COVID-19 pandemic hit, leading to parking closures and restrictions on visitors globally.
Disney’s shares have fallen more than 40 percent so far this year, lagging the nearly 7 percent year-to-date drop in the broader Down Jones Industrial Average.
“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” chairwoman Susan Arnold said in the statement.
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.
The streaming business lost nearly $1.5 billion in the quarter, more than twice the previous year’s loss, overshadowing subscriber gains.
Iger exited Disney on a high note as the company led the battle against rival Netflix in the streaming wars. During his tenure, Disney made several key acquisitions, including Pixar Animation Studios, Marvel Entertainment and 21st Century Fox, and boosted its market capitalization five-fold.
During this second tour, Iger has been charged with “setting Disney on a path to renewed growth” and working with the board to identify a successor, the company said.
There was no after-hours trading in Disney shares. The stock last closed at $91.80 on Friday, up 0.38%.
The leadership change caught employees by surprise, two company sources said.
DISNEY TECHNICAL ANALYSIS
In the daily chart, Disney is currently trading in the up channel.
It is currently trading above all MA; RSI is in buying zone.
Its immediate resistance is at 108.89 and its support level is at 97.19
HOW TO TRADE IN THIS WEEK
Currently, the market is trading in an up channel. A strong bullish candle is made which has broken the previous week’s high, the market is indicating upside movement remains bullish on it.