Shares of Walt Disney Co. DIS advanced in premarket trading on Thursday following the company’s announcement in a late-Wednesday filing that CEO Bob Iger‘s term has been extended for two more years until the end of 2026.
Analyst Takes: According to KeyBanc Capital Markets analyst Brandon Nispel, the extension is considered neutral to the stock. Nispel noted that the company may have encountered challenges in finding a suitable replacement for Iger, leading to the decision to extend his tenure.
Why It Matters: The extension provides Iger with more time to fully implement the significant restructuring and cost-saving initiatives he has initiated across various business segments, added Nispel.
CNBC’s Jim Cramer emphasized the importance of speed in executing the turnaround initiatives that Iger has been spearheading since his return to Disney in November 2022.
Price Action: In premarket trading, Disney shares gained 1.50% to reach $91.50, according to data from Benzinga Pro.
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