Bob Iger Suddenly Jumps Back Into Role of Disney CEO
(ConservativeHub.com) – Bob Iger led Disney as its Chief Executive Officer for 15 years. During that time, he helped the company acquire Marvel, Pixar, 21st Century Fox, and the Star Wars series owned by Lucasfilm. However, in February 2020, he handed over the metaphorical reigns to Bob Chapek.
During his successor’s time in office, though, shares in Walt Disney’s enormous empire fell 28%, a stark contrast to the 27% gained by the S&P 500 during that same period. After a rocky few years, the corporate board reinstated Iger into the position of CEO, shocking many.
Disney Shocks the World on Sunday
On Sunday, November 20, Disney’s Board officially announced Bob Iger was immediately replacing Bob Chapek as CEO. Iger worked for the Mouse House for over 40 years and committed to two more, despite previous comments he would not return. Still, as the CEOs switch, Disney will continue to pay Chapek for the remainder of his three-year contract, totaling over $23 million, according to Bloomberg. The number could be higher if company stock prices recover to pre-pandemic levels, too.
Announcement Gives a Boost to Company Stock
As investors heard the news over the weekend, Wall Street quickly reacted. Before the market opened on Monday, the stock was trading 10% higher, and by the end of the day, it settled at a 6% increase, equaling $97.57 a share. While stock prices are still down from their all-time high in March 2021 of $197.16, it was a significant boost.
Disney stock soars after Bob Iger replaces Bob Chapek as CEO https://t.co/37IM4AHiT0 pic.twitter.com/shgnoJMdS8
— New York Post (@nypost) November 21, 2022
This resurgence of confidence from investors also comes shortly after Chapek announced the company would have to cut expenses and likely lay off some workers after a lackluster fourth-quarter financial report.
What Does the Future Look Like for The Walt Disney Company?
In a press release on Sunday, The Walt Disney Company thanked Chapek for “navigating the company through the unprecedented challenges of the pandemic.” However, it also clearly stated, “Iger is uniquely situated” to steer the enterprise where it needs to go.
Iger himself emphasized he was “deeply honored” to return to the company and highlighted how he will focus the mission “on creative excellence to inspire generations through unrivaled, bold storytelling.” With this seasoned media veteran back at the helm of this historic corporation, it could get even stronger as it moves into the future of streaming, technology, and amusement.
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