In a move that shocked Hollywood, Bob Iger, one of the most notable CEOs in the history of The Walt Disney Company, is returning to once again run the media empire.
Bob Chapek, who replaced Iger in 2020 as CEO, is stepping down immediately.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” Susan Arnold, Chairman of the Board for Disney, said in a statement on Sunday night. “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.”
Investors cheered the news, sending Disney shares 9% higher in premarket trading. As of Friday’s close, the stock has lost roughly 40% of its value this year.
The announcement, while surprising to the media industry, comes at a time of great evolution for Disney. The company is coming off a lackluster earnings report that showed growth for its streaming endeavors. However, that came at a great cost. Disney’s streaming business lost $1.5 billion in the fourth quarter. That report sent Disney’s stock tumbling after a year of sluggish-to-bad performance.
Chapek guided Disney through the pandemic, one of the most tumultuous periods in the company’s nearly 100-year history, but ultimately Disney decided that its future was in better hands with Iger.
