At News of Former CEO's Comeback... Disney's Stock Surges Over 6%

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Wall Street is buzzing as Disney, facing a crisis due to poor performance, has brought back former CEO Robert Iger (Bob Iger) as a savior. On the 21st (local time), news of Bob Iger’s return as CEO, who led Disney for 15 years, caused Disney’s stock price to surge more than 6%.

As of 2:01 PM at the New York Stock Exchange, Disney’s stock price was trading at around $97.48, up 6.19% from the previous close. At one point during the session, it reached $100.89. This recovery above the $100 mark is the first since the 8th. This upward trend contrasts sharply with the Nasdaq index, which, focused on tech stocks, was down nearly 1% that day.

Disney’s rally is driven by expectations of Iger’s return as CEO. The day before, Iger informed Disney employees via email about his return as CEO. His term is set for two years.

Having served as Disney CEO from 2005 to 2020, Iger is credited with building the "Disney empire" by acquiring Pixar, Marvel, Lucasfilm, and 21st Century Fox, increasing market share fivefold. In February 2020, he handed over the CEO position to Bob Chapek and stepped down as chairman of the board last December. Facing a crisis this year due to poor performance and falling stock prices, Disney reportedly requested the return of the "seasoned savior" Iger.

Disney’s recently disclosed third-quarter loss reached $1.47 billion, double the amount from a year earlier. This was due to late entry into the OTT market with massive investments but little profit. As a result, Disney’s stock price has plummeted 41% since the beginning of the year through last week. Chapek, who had warned of price hikes and layoffs amid profitability pressures, stepped down as CEO the day before.

This content was produced with the assistance of AI translation services.