Strong rise in Disney shares after the announcement of the return of Bob Iger to lead the company

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The price of its shares on the Wall Street premarket climbs above 8 percent. The former CEO returns two years after handing over the job to Bob Chapek

Strong rise in Disney shares after the announcement of the return of Bob Iger to lead the company

Bob Iger talks next to a Minnie doll in Los Angeles, California, (REUTERS/Mario Anzuoni/File)

Disney shares climb more than 8% this Monday after the announcement of the dismissal of his current CEO, Bob Chapek, and the return of the company's former boss, Bob Iger, who will take over the company. The measure will be implemented immediately, the company assured.

The measure is unexpected and generated an immediate reaction in the markets, which this Monday marked growth in Disney titles on Wall Street hours after the opening of the session.

The initial rise had been around 10 percent, but over the hours it has moderated.

“We are grateful to Bob Chapek for his services to Disney throughout his long career,” said Susan Arnold, chair of the company's board of directors .

The board of directors decided that as the conglomerate “embarks on a increasingly complex period in industry transformation, Bob Iger is uniquely positioned to lead.”

Chapek served as CEO for two years, a tenure in which Wall Street expressed his concerns about the rising expenses of the company. Disney's stock is down 41% this year. A few weeks ago, Disney reported fiscal fourth quarter results that were below expectations.

Strong rise in Disney shares after the announcement of the return of Bob Iger to lead the company

The former CEO of Disney Bob Chapek (REUTERS/Katherine Taylor/File)

Iger, who was chief executive for 15 years, increased the company's capitalization fivefold in the market during that period.

Iger promoted Chapek as his replacement in 2020 but the relationship between the two became strained.

“I I am deeply honored to be asked to lead this extraordinary team again,” said Iger, who led Disney through the acquisition of Pixar, Marvel, Lucasfilm and 21st Century Fox, and during the launch of Disney+ and ESPN+.

(With information from AFP)