Bob Iger Back in Charge as Disney CEO; Shares Jump 9%

Disney shares are bucking the early negative trend in the U.S. stock market on Monday rising more than 9% after the media giant announced that Bob Iger would return as CEO, effective immediately.

The move was announced late Sunday after Iger’s hand-picked successor as CEO, Bob Chapek, came under fire for his management of the entertainment giant.

Iger Back at the Helm at Disney

“It is with an incredible sense of gratitude and humility – and, I must admit, a bit of amazement – that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer, Iger wrote to employees in an email, which was obtained by CNBC.

Iger has signed on to work as CEO for two years, Disney said Sunday, “with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”

How Iger Got His Former Job Back

The wheels for Iger’s return were likely set in motion on November 8 when Disney fell short of expectations for profit and key revenue segments during the fiscal quarter and warned strong streaming growth for its Disney+ platform may taper going forward.

After that announcement, shares of the company fell roughly 8%.

The company’s quarterly results missed Wall Street expectations on the top and bottom lines, as both its parks and media divisions underperformed estimates.

At the same time, Chief Financial Officer Christine McCarthy tempered investor expectations for the new fiscal year, forecasting revenue growth of less than 10%. The company reported 2022 fiscal revenue growth of 22%.

Fourth-quarter revenue in the media and entertainment division fell 3% year over year to $12.7 billion during the year-earlier period, as the company’s direct-to-consumer and theatrical business struggled. Analysts has expected segment revenue of $13.9 billion, according to StreetAccount estimates.

Disney+ growth is expected to slow in the fiscal first quarter, Disney executives warned in a conference call.