What's Happening at Disney? The New CEO & What It Means for the Company's Future
Will this strategy lead Disney to a new renaissance, or will the company face another period of turbulence?
A long-awaited event finally took place at Disney this week: the board of directors selected Bob Iger's successor. On March 18, Josh D'Amaro will take the reins. He previously oversaw theme parks and cruise ships.
This decision brings an end to years of uncertainty and intrigue surrounding the media giant's leadership. Why was D'Amaro chosen and what does this mean for Disney's strategy? And why was it so important for the company to make the right choice this time?
Why Did Bob Iger Retire, Only to Return to Disney?
Bob Iger first took over Disney in 2005 and became the architect of its modern empire by adding Pixar, Marvel, Lucasfilm, and 20th Century Fox. Iger postponed his departure four times, but in 2020, he seemed to have found the perfect successor in Bob Chapek, the leader of Disney's parks division.
However, Chapek's reign coincided with the pandemic and proved disastrous. Unpopular decisions, conflicts with creative leaders, and disagreements with Iger led to Chapek's ouster after just two years.
In 2022, Iger returned as CEO with a mission to stabilize the company and find a more reliable leader.
The Two Main Candidates for the CEO Role – Josh D'Amaro and Dana Walden
The search for a successor, led by a special committee chaired by former Morgan Stanley CEO James P. Gorman, narrowed down to two key figures. The first was Dana Walden, who oversaw TV and streaming, achieving profitability for the services.
The second was Josh D'Amaro, who heads the company's most profitable division, Parks, Experiences, and Cruises. Although many experts considered Walden the front-runner, D'Amaro was ultimately chosen.
However, Walden was not left out in the cold – she was appointed chief creative officer, overseeing all creative and content areas of the company under the new CEO.
Who Is Josh D'Amaro, and What Does His Appointment Mean for Disney?
Josh D'Amaro has worked for the company since 1998. He recently managed the company's flagship business, which includes 12 parks worldwide and a fleet of cruise ships. This business generates approximately 60% of Disney's revenue and accounts for over 80% of its total value.
Experts note his boldness in innovation. He lobbied for the multibillion-dollar partnership with Fortnite and championed the implementation of AI and robotics in ride design. D'Amaro isn't afraid to make tough decisions, as evidenced by repeated price increases and process optimization at the parks.
His appointment signals a clear strategic choice to focus on a sustainable, highly profitable physical entertainment business with a development plan calling for $60 billion in investments over the next decade.
However, D'Amaro also faces significant challenges – he lacks experience working with Hollywood's creative elite, which proved fatal for Chapek. Additionally, creative divisions, especially streaming, are experiencing hard times due to fierce competition.
The future of Disney will be determined by the partnership of D'Amaro and Walden. D'Amaro will ensure the financial stability and growth of the company's most valuable asset, and Walden will ensure a creative renaissance and the production of competitive content.
After past mistakes, the company is finally trying to create a balanced management model.
