(BFM Bourse) – The media giant’s stock advanced sharply on Wall Street on Monday after the company elected to reappoint the leader who made it so successful between 2005 and 2020. But significant challenges lie ahead. on the horizon.
It’s a back to the future in the enchanted kingdom. The iconic Bob Iger, who led Walt Disney for 15 years before stepping down the reins in 2020 he was called back on Sunday to lead the company, succeeding Bob Chapek who resigned.
The group did not specify the reasons for Chapek’s farewell, which however comes after the quarterly results recently received by the market – with the steeply rising costs of the Disney + streaming platform – and while the group is forced cut your expenses. And that its share price has fallen 40% since the beginning of the year…
Under the aegis of Bob Iger, the group led a series of acquisitions that began in 2006 with Pixar, then Marvel Studios and Lucasfilm, which respectively hold the rights to adapt certain Marvel and Star Wars franchises. Many licenses that allowed him to become an even more essential actor of the seventh art and to secure a substantial offer to Disney +.
On the New York Stock Exchange, the market appreciates this return of Disney’s strong man, the group’s share rises 7.4% to $98.58 at around 4.30pm.
“Making things happen”
“While Chapek’s departure is not a surprise due to the recent turmoil and decline of the title, Iger’s resurgence is a good surprise. Iger will be seen as a catalyst to improve the content aspects of [Disney]and we expect more significant potential strategic changes around the long-term shape of DTC [direct-to-consumers, division qui regroupe notamment Disney +, NDLR”, estiment les analystes de Wells Fargo, cités par Investing.com .
“Bien que l’annonce ne résolve pas tous les problèmes de [Disney]we think investors will accept it because it puts perhaps the best media executive at the helm of the company with a mandate to make things happen,” they continue.
“The question is whether this solves Disney’s major strategic dilemma of what to do with Disney+, which lost $1.5 billion last quarter and skews the rest of the business,” said Ian Whittaker, independent analyst at Liberty Sky. advisors, quoted by Bloomberg. “I don’t think so. Iger was the architect of the streaming strategy and he still seems busy,” she continues.
Bob Iger’s arrival also comes sometime after activist fund Trian took a stake of more than $800 million, according to the Wall Street Journal. According to the American newspaper, this fund would not like the return of Bob Iger.
To see if Bob Iger will allow the media giant to find the magic to once again enchant Wall Street. And signs a convincing comeback, the best example remains Steve Jobs. The co-founder of Apple had been dismissed from his group in the mid-80s before taking the leadership of the group in 1997 and leading it to the success we know, with the launch of the iPhone of the iPad.
Julien Marion – ©2022 BFM Exchange