Former Disney CEO returns, causing stocks to rise

(NBC) - A familiar name is back in charge at Disney as it looks to reign in costs.

Bob Iger has returned as CEO of the entertainment giant.

He is replacing Bob Chapek, who assumed the top role from Iger in early 2020.

Following the announcement, Disney stock rose about 9% in Monday morning trading.

The company's stock has fallen about 40% so far this year, especially after a disappointing quarterly earnings report was released earlier this month.

Still, the decision to replace Chapek with Iger was shocking.

Iger, who worked for 15 years as Disney's Chief, had said previously that he would not return to the job.

Not only that, Disney renewed Chapek's contract earlier this year.

Chapek took over just before the COVID pandemic hit and guided the company through those trying times, with Iger serving as chairman through December of last year.

Disney's stock was trading at just over $200 at one point in 2021.

Since that point, their shares have tumbled, closing Friday below $100 per share.