The market seems pleased returning chief executive officer Bob Iger is grabbing the mouse by the ears and announcing a big shake-up at Disney judging by the share price action in after-hours trading.
Like several big US firms of late, Iger is cutting jobs and once again investors have welcomed a drive for greater efficiency. It suggests he is serious about making the Disney+ streaming platform profitable after it announced its first fall in subscribers since launch in 2019.
AJ Bell’s Russ Mould said: “The simplification of the group’s structure to have three divisions – entertainment (TV, film and streaming), its ESPN sports network and Disney parks, experience and products – seems logical and it was notable that activist investor Nelson Peltz gave the changes his seal of approval.
“The linear TV business is in structural decline and having separated out sport, often the one thing people are still keen to watch live, it will be interesting to see the destiny of its other cable TV channels.
“Iger is off to a good start but if the sequel to his previous succession plan is to be better received than the original, he still has work to do in his remaining 20 months or so in charge.”