Disney taps parks head Josh DAmaro as CEO to lead post-Iger era

D’Amaro’s division generated $10 billion in operating profits last fiscal year

CEO contender Walden named chief content officer and president

Rivalry deepens as Netflix and Paramount eye Warner Bros assets

Analysts say D’Amaro’s unfamiliarity with Hollywood could be a challenge

(Added comments from former Disney CEO Michael Eisner in paragraphs 26-27)

Feb 3 (Reuters) – Walt Disney on Tuesday named theme parks chairman Josh D’Amaro as CEO, ending years of succession uncertainty and putting a longtime insider at the helm as a wave of artificial intelligence and consolidation roils the media industry.

D’Amaro, 54, will take the reins from Bob Iger, 74, at the company’s annual investor meeting on March 18. Iger, credited with shaping modern Disney through deals with Pixar, Marvel and 21st Century Fox, will remain a senior advisor and board member until his retirement from the company on Dec. 31.

Disney also named entertainment co-chief Dana Walden, a creative executive like Iger with a string of commercial and critical hits and strong talent ties, as chief content officer and president.

Walden was among the internal candidates for the CEO role, along with entertainment co-chief Alan Bergman and ESPN president Jimmy Pitaro.

Succession has long been the famed entertainment giant’s Achilles heel; He delayed Iger’s retirement several times, bringing him back in 2022 to replace his handpicked successor, Bob Chapek, after the pandemic disrupted his business. To avoid another misstep, Disney appointed Morgan Stanley veteran James Gorman as chairman in 2024 to oversee the CEO search. Gorman, who led a smooth transition at the Wall Street bank, joined after the House of Mouse extended Iger’s term for a fifth time, through 2026. The search committee evaluated 100 external candidates as well as internal contestants.

Gorman said the committee evaluates candidates’ company vision, understanding of the Disney brand, creative talents and embrace of technological innovations (especially artificial intelligence).

“There’s so much he does creatively, storytelling, and he has such a deep understanding of the brand and where the industry is going,” Gorman said. “I thought it was a great choice.”

With D’Amaro, Disney is turning to a nearly three-decade veteran of the company that runs its biggest profit engine — the experiences unit that includes theme parks and cruises and whose sales are rising every year after the pandemic receded in 2021.

Last fiscal year, the division generated a record operating profit of nearly $10 billion, accounting for almost 60% of the company’s earnings.

Disney shares fell 0.7% on Tuesday.

D’Amaro is leading the company’s push into the Middle East with a theme park in Abu Dhabi, the capital of the United Arab Emirates, that will be its first major new park in nearly a decade.

CHALLENGES FACED BY THE NEW CEO But a decline in international visitors to the US is putting pressure on the parking business; Disney shares fell more than 7% on Monday after the company was flagged as a “headwind” even as its overall sales and profits beat expectations.

While D’Amaro is a familiar face to visitors to Walt Disney World in Florida, analysts say he is little known in Hollywood. This can be challenging when faced with an entertainment industry where generative AI tools threaten to reshape by automating writing, editing and visual effects. The timing is particularly risky as the announcement comes just months before the industry’s major guild contracts, including those for writers and actors, expire in May and June, setting the stage for a new round of labor negotiations. The breakdown in talks, partly due to the use of artificial intelligence, had led to a double strike by unions in 2023; This disrupted much of Hollywood production and led to losses of approximately $6 billion in production. Disney is particularly under scrutiny after it decided late last year to allow OpenAI to use characters from the Star Wars, Pixar and Marvel franchises in the startup’s Sora AI video creator. He also agreed to invest $1 billion in the startup.

Chapek, another park veteran turned CEO, had trouble with talent relations and botched a dispute with Scarlett Johansson over the simultaneous release and theatrical release of “Black Widow”; This resulted in a lawsuit and final settlement.

“These are big boots to fill. Disney cannot afford another complex handover,” said PP Foresight analyst Paolo Pescatore.

“Ultimately, the key to Disney’s success and future growth lies in creating content that keeps the wheels moving across theatrical releases, experiences, licensing and streaming.” Netflix and Paramount, Warner Bros. Competition is getting fiercer as they try to grow by acquiring assets; Both combinations are expected to result in a major competitor for broadcast and studio.

D’Amaro will also have to deal with political pressure from the Trump administration. In September, the company pulled “Jimmy Kimmel Live” from the air after the host’s comments about the assassination of conservative activist Charlie Kirk drew threats from the communications regulator. Following the backlash over the decision, the midnight show was quickly restarted. President Donald Trump said in November that licenses used by Disney-owned ABC affiliates should be “taken away” after a reporter from the network questioned him about the Jeffrey Epstein scandal.

Disney has set D’Amaro’s annual base salary at $2.5 million, and he will be given a long-term incentive award each fiscal year with a target value of $26.3 million.

Former Disney CEO Michael Eisner praised the selection of Iger’s successor and the decision to elevate Walden in a post on social media platform X.

“My advice to Josh is to continue Bob Iger’s strategy that creativity will drive profits and always protect the brand,” Eisner wrote. “And follow Walt Disney’s words closely: ‘We love entertaining kings and queens, but the most important thing to remember is that every guest gets VIP treatment.'”

(Reporting by Aditya Soni in Bengaluru; Additional reporting by Harshita Varghese and Dawn Chmielewski; Editing by Arun Koyyur, Anil D’Silva, Chris Reese and Nick Zieminski)