The Walt Disney Company's board is reportedly close to naming Josh D’Amaro, chairman of the theme parks division, as its next chief executive officer. Sources indicate that D’Amaro is set to replace current CEO Bob Iger, who is expected to step down at the end of this year. This decision would conclude a three-year search for Iger's successor.
The board is anticipated to finalize its decision during meetings scheduled for this Tuesday and Wednesday. D'Amaro, aged 54, has been a leading candidate for the top position, especially given the strong performance of the theme parks under his leadership.
Key Takeaways
- Josh D’Amaro is expected to be named Disney's next CEO.
- Bob Iger is slated to depart at the end of the year.
- D'Amaro leads the profitable theme parks division.
- Dana Walden was considered a strong contender for the role.
Leadership Transition at Disney
Bob Iger, 74, has had a significant impact on Disney's history. He previously served as CEO from 2005 to 2020. He returned to the role in 2022 after his chosen successor, Bob Chapek, was removed from the position after a short tenure. The search for a new CEO has been ongoing since 2024, led by Disney chairman James Gorman.
The company's four divisional heads were all considered for the CEO role. These included D'Amaro, entertainment co-chairs Dana Walden and Alan Bergman, and sports chair Jimmy Pitaro. The field narrowed over time, with D'Amaro and Walden emerging as the primary contenders.
Quick Fact
Disney's theme park unit, led by Josh D'Amaro, reported over $10 billion in quarterly revenue for the first time recently. This unit contributes significantly to the company's overall profits.
D'Amaro's Path to CEO
Josh D’Amaro joined Disney in 1998. He previously worked at the Gillette razor company. His career at Disney has largely progressed through the theme park division, where he held leadership roles at resorts in California, Hong Kong, and Florida. He assumed leadership of the theme park unit in 2020, a period that included navigating the challenges of the global pandemic.
The success of the theme parks unit under D'Amaro has been a major factor in his ascent. Despite recent expectations of a slowdown in international tourist visits impacting domestic parks, the division's robust performance has been a consistent highlight for the company.
"The board has not yet selected the next CEO of The Walt Disney Co. and once that decision is made, we will announce it," a Disney representative stated, acknowledging the ongoing process.
The Contender: Dana Walden
Dana Walden, co-chair of entertainment, was a strong rival for the CEO position. At one point, many observers saw her and D'Amaro as neck and neck in the race. However, a public incident involving the future of Disney-owned ABC's "Jimmy Kimmel Live!" reportedly impacted Walden's standing.
The situation involved late-night host Jimmy Kimmel making a controversial joke. Walden briefly pulled Kimmel off the air. He eventually returned after negotiations between Walden and Iger, offering a partial apology. This event brought Walden into the news for several days, an outcome Disney leadership typically aims to avoid, despite her strong reputation in Hollywood.
Market Reaction
Shares of Disney experienced a decline of over 6% on Monday, even though the company surpassed analysts' first-quarter expectations. Disney reported adjusted earnings of $1.63 per share on revenue of $25.98 billion, exceeding Wall Street's predictions of $1.57 EPS on $25.74 billion revenue.
The Road Ahead
The expected appointment of D'Amaro brings a level of certainty to Disney after a prolonged search for its next leader. Industry insiders suggest that if D'Amaro is confirmed, the company might offer Dana Walden an elevated creative role to retain her talent. This move would aim to keep key leadership within the company as it navigates future challenges and opportunities in the entertainment landscape.
James Gorman, the Disney chairman, has been instrumental in spearheading the CEO succession search. His experience in managing successful leadership transitions, including a previous one at Morgan Stanley, has guided this crucial process for the entertainment giant.
- The CEO search has lasted three years.
- James Gorman led the succession process since 2024.
- Four divisional heads were initially considered for the role.
- D'Amaro's background is primarily in theme park operations.
The board's decision this week will mark a new chapter for The Walt Disney Company, setting the direction for its vast global operations in entertainment, parks, and consumer products.
