Farewell to the Eiger era! Disney(DIS.US) announces Damaro as the new CEO, effective March 18

Disney (DIS.US) announced on Tuesday that current “Experience Business” head Josh D’Amaro will succeed Bob Iger as the company’s CEO, ending a three-year search for a successor. The appointment will take effect on March 18, marking a new leadership phase for this century-old entertainment giant.

The 54-year-old D’Amaro has been with Disney for 28 years, with a long focus on theme parks and resort operations. He currently oversees the Experience segment, which is Disney’s core profit driver. He was selected from among several internal candidates, including Dana Walden, Co-Chair of Entertainment and Head of Television; Alan Bergman, Head of Film; and Jimmy Pitaro, President of ESPN.

Disney also announced that Walden will serve as the newly created “President and Chief Creative Officer,” reporting directly to D’Amaro. D’Amaro will also join the Board of Directors. Iger will remain on the board and serve as a senior advisor until his official retirement on December 31 this year. The company stated that Iger has personally mentored potential successors in recent years, and the board hopes to ensure a smooth transition and avoid past mistakes in succession planning.

Disney Chairman James Gorman said that D’Amaro possesses inspiring leadership, innovative spirit, and strategic growth vision, making him the best choice to lead Disney into the future. Media reports previously indicated that the board was close to finalizing D’Amaro as CEO.

D’Amaro previously served as President of California Disney Resort and Walt Disney World in Florida, managing 12 theme parks, 57 hotels, and over 185,000 employees across resort operations. He led the rollout of the “Star Wars” themed land and pushed for updates to Epcot. Under his leadership, Disney launched a ten-year, $60 billion resort expansion plan, including increasing the cruise fleet from 7 to 13 ships and partnering with Miral Group to build the first theme park in the Middle East.

This leadership change comes at a critical time in Disney’s transformation. During his second term as CEO, Iger successfully reversed the decline in streaming, with the division posting a $1.3 billion profit last year, a significant improvement from a $4 billion loss in 2022. However, Disney’s stock has underperformed the S&P 500 over the past three years, streaming user growth has slowed, and traditional TV business has contracted, leading investors to remain cautious about the media industry’s overall outlook.

Analysts note that D’Amaro’s career has been almost entirely in the theme park sector, and he will face more complex challenges ahead: on one hand, continuing to improve profitability in film and streaming; on the other, addressing declining ratings on traditional TV networks like ABC and Disney Channel. Walden has been responsible for TV and streaming operations since 2023 and led Disney’s first streaming profit in 2024. The two are expected to form a key partnership moving forward.

During his tenure, Iger invested hundreds of billions of dollars acquiring assets such as Pixar, Lucasfilm, Marvel, and 21st Century Fox, and launched Disney+ in 2019, laying the foundation for Disney’s streaming strategy. However, his succession has been a long-standing concern. His initially appointed successor, Bob Chapek, was ousted less than three years after taking office in 2020, ultimately leading the board to rehire Iger in 2022.

This succession plan was led by Gorman, who took over the planning process in August 2024 and emphasized that the selection process was more cautious and thorough this time, aiming to avoid past turbulence. Iger, in his farewell remarks, said the new CEO will inherit a “good hand,” with the company still possessing strong fundamentals and growth opportunities. However, in a rapidly changing world, Disney must continue to evolve.