Media magnate Byron Allen has shown unwavering support for Disney DIS CEO Bob Iger despite the company’s ongoing struggles.
What Happened: Allen expressed his confidence in Iger on Tuesday, during CNBC’s “Last Call” on Tuesday. This comes during a challenging time for the entertainment behemoth.
Allen said, “Bob Iger is the best of the best. He will do a great job as always. It’s just a speed bump,” indicating his belief in Iger’s ability to steer the company through its current challenges.
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Why It Matters: Allen’s endorsement arrives at a crucial time for Disney, which is grappling with several issues. His faith in Iger’s leadership could potentially sway investor sentiment and market confidence in the company.
Disney’s recent struggles include a marginal miss on revenue growth and a decline in entertainment revenue by 5% year over year, as reported in their second-quarter earnings. Additionally, questions about Iger’s succession plans have surfaced, adding to the company’s challenges. Iger, however, has assured a smooth transition.
Despite these challenges, Disney is making significant changes to its streaming services and content strategy, with Iger expressing confidence in securing long-term NBA rights, as per the company’s second-quarter 2024 earnings call.
Price Action: Disney stock closed 9.51% at $105.39 on Tuesday, according to Benzinga Pro.
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