Disney has officially announced that Josh D’Amaro, currently serving as chairman of Disney Experiences, will succeed Bob Iger as the company’s next CEO. This pivotal decision concludes a closely monitored succession process that has captured the attention of investors, industry insiders, and the public. D’Amaro’s appointment will take effect on March 18 during Disney’s annual meeting, marking a significant leadership transition for the storied entertainment giant.
Bob Iger, who has led Disney for roughly two decades over two separate terms, will remain with the company as a senior advisor and board member until his retirement on December 31 of this year. Iger praised D’Amaro in a statement, highlighting his exceptional leadership abilities, deep understanding of the Disney brand, and knack for combining creativity with operational excellence.
The selection of D’Amaro comes after a meticulous vetting process that was overseen by the Disney board, chaired by former Morgan Stanley CEO James Gorman. Throughout the last several years, Disney has assessed candidates primarily from within its own executive team, with D’Amaro, ESPN Chairman Jimmy Pitaro, and Entertainment Co-Chairmen Dana Walden and Alan Bergman all interviewing for the top job. In recent months, speculation about the final candidates had narrowed down to D’Amaro and Walden, with Walden also being named president and chief creative officer as part of the leadership transition.
D’Amaro ascends to the CEO position at a time of some uncertainty within Disney. The company recently reported quarterly earnings that beat expectations, bolstered by impressive performance from its theme parks and streaming services, yet its stock still experienced a 7% decline. This mixed reception highlights the challenges that lie ahead. Iger has expressed confidence in the company’s recent strategic shifts and emphasized a positive trajectory moving forward.
One of Disney’s most promising divisions is the experiences unit, which encompasses the company’s theme parks, resorts, and cruise lines. This segment recorded over $10 billion in quarterly revenue for the first time, providing considerable growth potential. Plans are already underway for a new theme park and resort in Abu Dhabi, in addition to a commitment to invest $60 billion in existing theme parks over the next decade. The entertainment landscape is also rapidly evolving, with Disney facing the intricacies of declining traditional TV viewership while focusing on high-profile content and profitability in the streaming sector.
Transitioning into the CEO role involves significant challenges, especially following Iger’s long tenure. Iger’s comprehensive leadership has seen Disney evolve into a global powerhouse, characterized by strategic acquisitions and the successful launch of platforms like Disney+. However, his successor inherits a company that must navigate various complexities, particularly after a contentious leadership change in 2020 when Bob Chapek took over amidst a tumultuous backdrop marked by the COVID-19 pandemic. Chapek’s period as CEO was clouded by mixed results and public criticism, which ultimately led to Iger reclaiming the top role in late 2022.
During his second tenure, Iger concentrated on restructuring Disney, implementing cost-cutting measures, and reorganizing its divisions into three main areas: Disney Entertainment, ESPN and Sports, and Parks, Experiences and Products. As he prepares to step down, Iger has taken strides to ensure that Disney is well-positioned for the future, emphasizing the importance of succession.
In light of D’Amaro’s new role, industry watchers will be keenly observing how he navigates the complexities of Disney’s multifaceted business in the years to come.
