November 22, 2022 Bob Iger is returning to Walt Disney Co (DIS.N) as chief executive less than a year after he retired, a surprise comeback that coincides with the entertainment company's attempt to boost investor confidence and profits at its streaming media unit. Iger, 71, who was chief executive for 15 years and retired as chairman last year, has agreed to serve as CEO for two more years effective immediately, Disney said in a statement late on Sunday. He will replace Bob Chapek, who took over as Disney CEO in February 2020 just as the COVID-19 pandemic led to park closures and visitor restrictions. "Maybe the old hand on the tiller is what's required," said Markets.com analyst Neil Wilson. Disney has been spending billions of dollars to compete with rival Netflix Inc (NFLX.O) and is seeking to revive its share price. The stock had sunk more than 40% so far this year, lagging the nearly 7% year-to-date drop in the broader Dow Jones Industrial Average (.DJI). It lost almost a third of its value while Chapek was at the helm. "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," Chairwoman Susan Arnold said in the statement. Disney disappointed investors this month with an earnings report that showed mounting losses at its streaming media unit that includes Disney+. Shares hit a 20-year low the day after the fourth-quarter earnings. read more The streaming business lost nearly $1.5 billion in the quarter, more than twice the previous year's loss, overshadowing subscriber gains. The unit has yet to turn a profit since its 2019 launch, and Disney has said it expects Disney+ to become profitable in fiscal 2024. "I am an optimist, and if I learned one thing from my years at Disney, it is that even in the face of uncertainty - perhaps especially in the face of uncertainty - our employees and Cast Members achieve the impossible," Iger said in a memo to employees seen by Reuters.
