Dow: Disney shares climb 10% as Iger returns
Disney’s legendary former CEO Bob Iger has returned to the company as chief executive for a period of two years to inject some profitability into the streaming business.
(Video Transcript)
Disney shares up
Walt Disney shares are still in the limelight on this Monday morning. All sessions on the IG platform the stock is up more than 10% at the start today on news that Bob Iger is returning as the chief executive of the business.
Bob Chapek is leaving with immediate effect. He's been struggling to turn Disney's streaming services into a profitable business.
Iger retired last year after 15 years at the helm at Disney. He's agreed to serve as CEO for two more years.
Let's take a look at a quote from within the company. The chair of Disney's board, Susan Arnold, said in her statement, 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.
Disney share price
Take a look at the shares. All sessions on the IG platform means you can get an opportunity to trade this outside of hours and 9am UK time.
This morning it opened in startling fashion. The stock is currently up 8.7%. You can see it's off the highs at the moment, but it certainly indicates a very strong open at the start.
When the cash session gets underway a little bit later on, one wonders, it might be too much expected of Bob Iger to turn this business around. The problem with Disney is, I mean, it had such a massive ramp up from the COVID lows, right the way to the record highs we saw on the stock in the 9th of March 2021, all the way up to 205.20, gaining 160%, almost from the COVID lows.
Since then, we've seen a lot of competition issues. Streaming is up against a whole raft of of competition, most recently coming through from Netflix , which has just come in with a low subscription figure for advert driven streaming.
And at the moment at least, Disney hasn't yet competed with that. But it'll be interesting to see what happens. Certainly the initial reaction has been positive after the re-introduction as CEO of Bob Iger.
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