Walt Disney (NYSE: DIS) is doubling down on Bob Iger. The media giant is extending his CEO contract through the end of 2026, less than eight months after bringing him back on his initial two-year contract. 

Giving Iger more time was inevitable. I predicted back in December that he would be extended in 2023, and the chatter began picking up momentum earlier this month. It's the right call, despite Disney shares trading 2% lower since his return to the helm was announced. Let's dive into some of the reasons why Iger is now contracted to lead Disney for the next three and a half years.

Iger made it his initial priority to turn Disney's direct-to-consumer streaming business around, a segment that posted an operating loss north of $4 billion in fiscal 2022 and has bled nearly $1.5 billion through the first six months of fiscal 2023. He's cutting costs across all of Disney, but a lot of layoffs and $5.5 billion in annual savings are geared at turning its streaming segment profitable by the end of next year.

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Source Fool.com