Disney shares rallied after the unexpected return of Robert Bob Iger as chief executive in a move analysts say adds a familiar hand to shake things up after a rocky stretch.
Disney’s board of directors on Sunday night ousted CEO Bob Chapek amid a heated revolt by Disney executives and named Mr. Iger, the company’s former chairman and CEO, as his successor. The surprise switch to Mr. Iger, who left the company at the end of last year, came as Burbank, Calif.-based Disney faces numerous challenges, including weaker-than-expected financial results in the fiscal fourth quarter centered on its streaming shortfalls.
Disney shares opened 9% higher at $100.12 before retreating somewhat. In midday trading on Monday, the shares were up 5.8% at $97.03. Shares closed Monday at $97.58, up 6.3%. It was the stock’s largest increase since Dec. 11, 2020, when it rose 13.59% on news that the company aimed to reach 260 million Disney+ subscribers by 2024. The Dow Jones Industrial Average and S&P 500 index were down 0.2% and 0.4%, respectively.
Source: Wall Street Journal