Bob Iger is returning to Disney’s CEO seat for a two-year term after less than a year away from the company. He’ll replace Bob Chapek, who has stepped down from the position after less than three years.

“Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and he is greatly admired by Disney employees worldwide—all of which will allow for a seamless transition of leadership,” Board Chair Susan Arnold said in a statement.

The news comes five months after the board voted unanimously to extend Chapek’s contract as CEO for three years less than three weeks after Peter Rice, former Head of TV Content, was let go from the company. Chapek’s contract was initially set to expire in February 2023, and at that time Arnold said he had “the support and confidence of the board.”

Disney stock rose as much as 9% in early trading Monday in light of the CEO switch. MoffettNathanson upgraded its rating to “Outperform” from “Market Perform” and raised its price target by $20 to $120, a reflection of its confidence in Iger’s vision and strategic mind.

“We have not recommended the shares since May 2020 for multiple reasons, including concern that the former CEO Bob Chapek had become wedded to a streaming strategy that did not make sense given today’s reality,” the firm said in a note to clients. “Putting it all together, we expect the new CEO to re-examine and re-direct Disney’s current streaming strategy, honestly deal with the challenges confronting its linear networks by cutting back on non-essential sports, change the centralized approach to content procurement under former CEO Chapek and manage the company forward with discipline, sound strategy and flawless execution.”

The Daily

Subscribe

Gunning for Gigi: Outcry Over Recent Coverage Grows Louder

When we spotted last week’s Daily Mail article tying FCC nominee Gigi Sohn to a dominatrix because of her membership on the Electronic Frontier Foundation board, we figured the tabloid report would not

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact [email protected] for more information.