5 Problems Facing Whoever Disney Picks as CEO
Disney has announced it will name CEO Bob Iger’s second successor in 2026.
Former Morgan Stanley CEO James Gorman, who has been appointed executive board chairman of Disney from January, will lead the search.
Gorman had served as CEO of Morgan Stanley for 14 years and is credited with transforming it into a wealth management giant.
“A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026,” said Gorman in a press release. “This timing … will allow ample time for a successful transition.”
Disney’s current CEO, Bob Iger, was previously CEO until 2020 when he stepped down in favour of Bob Chapek, his preferred successor. Chapek however faced huge challenges with the onset of Covid and eventually fell out with both the board and Iger. In late 2022, Disney’s board dismissed Chapek and asked for Iger to come back.
Iger had initially planned to stay for two more years after coming out of retirement but agreed to extend his tenure until December 2026.
Iger, credited with growing Disney’s empire through the high-profile acquisitions of Pixar, Marvel and the Star Wars franchise, has seen his retirement date extended five times.
Internally, four candidates are viewed as competing to become CEO of Disney:
- Dana Walden, co-chair of Disney Entertainment, a TV executive with a string of commercial and critical successes and strong talent relationships
- Josh D’Amaro, chair of Disney Experiences, whose portfolio includes the company’s most significant revenue engine, its theme parks
- Jimmy Pitaro, chair of ESPN, who is guiding the sports network’s digital transition
- Alan Bergman, co-chair of Disney Entertainment, who oversees the movie studio which released smash hits Inside Out 2 and Deadpool & Wolverine this year
5 problems facing whoever becomes Disney CEO
However, each of these four internal frontrunners faces problems in their own divisions which feed into wider challenges facing the venerable media giant.
Struggling theme parks
Attendance and revenue at Disney parks have fallen short of expectations. Disney anticipates continued lower attendance at its American parks for the latter half of the year. Pulse economic struggles in China are impacting park performance there.
Tired franchises
Iger spent heavily buying franchises including Marvel and Star Wars that are perceived as being tired and overworked. The Marvels had the lowest opening weekend of any Marvel superhero movie, falling short of even lowered expectations.
Changing viewing habits
Children's viewing habits are shifting towards online platforms such as YouTube, threatening Disney's traditional dominance in children's entertainment.
Burgeoning costs
The transition of sports network ESPN from traditional TV to digital platforms is proving costly and complex.
Culture wars
Disney has been barracked by right-wing commentators for its promoting diversity, equity, and inclusion (DEI) in its content. Fans have castigated Disney’s “woke” themes in recent cinema releases, including an openly gay teenage character in animated movie Strange World and its colour-blind casting of a Black actress as Ariel in its live-action remake of The Little Mermaid.
******
Make sure you check out the latest edition of Business Chief, the monthly digital magazine for CEOs of multinational companies
******
Business Chief is a BizClik brand