Key Points
- Disney shares won as entertainment giant reportedly brings back two former executives to advise CEO Bob Iger.
- Kevin Mayer and Tom Staggs are expected to consider the future of Disney's legacy TV operations.
- Iger suggested that TV assets, including ESPN, could be sold.
The Walt Disney Company (DIS) shares rose 3.2% on Monday following reports that the entertainment company reportedly brought back two former senior executives to advise CEO Bob Iger on a potential shakeup.
Kevin Mayer and Tom Staggs would consult with Iger to address the the company's legacy television operations, including sports network ESPN. Iger indicated in a recent interview that he is considering selling these assets.
Mayer and Staggs are also expected work with ESPN President Jimmy Pitaro to review strategic options for the network.
The Walt Disney Company shares fell to their lowest level since 2014 at the end of December, and although they rebounded at the start of the year, they have faded and increased only slightly for 2023.
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Iger returned as CEO in November after that his replacement, Bob Chapek, was fired after a tumultuous two-year tenure, including a spat between Disney and Florida Governor Ron DeSantis over the company's policies on social issues. He previously served as CEO from 2005 to 2020 and worked closely with Mayer and Skaggs. The two, seen as the best candidates to succeed Iger, left the company to start Candle Media.
The board recently extended the Iger's contract until 2026 as he continues to search for a new CEO.
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Source: investopedia.com
