Disney's succession looks different this time
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Disney named Josh D'Amaro its next CEO, sticking with another parks veteran to succeed Bob Iger. But the context and the reputation are very different.
Why it matters: The last time Disney picked a parks chief, the move backfired. Bob Chapek's rocky tenure was defined by political battles, a messy reorganization and frayed ties with creative leaders.
The big picture: D'Amaro inherits a different company and a cleaner runway. The company already has committed $60 billion to expand Disney Experiences, which spans parks, cruises and consumer products.
- On Disney's earnings call Monday, Iger pointed to the company's strong portfolio and new initiatives that would define its next era, even as Disney Experiences reported record quarterly revenue of $10 billion and profits.
- Case in point: Iger said Disney now has "healthy competition" between its parks and entertainment divisions in terms of which is going to "essentially prevail as the number one driver of profitability for the company."
- "The company is in much better shape today than it was three years ago, because we have done a lot of fixing, but we've also put in place a number of opportunities," Iger said.
- "I also believe that in the world that changes as much as it does ... trying to preserve the status quo was a mistake, and I'm certain that my successor will not do that," he added.
State of play: D'Amaro has deliberately integrated Disney Experiences across divisions and built a reputation for collaboration.
- He's worked closely with leaders like Disney Entertainment co-chair Alan Bergman to move film IP into the parks and vice versa, as well as building new tech like BDX droid robots that appear in the parks and in the upcoming film "The Mandalorian & Grogu."
- "If you have been through the parks, been on one of the cruise ships, you would appreciate just how much the IP is infused in all aspects of what Disney does, so Josh is actually deep in the IP," Disney board chair James Gorman said on CNBC Tuesday.
- D'Amaro also was a key driver of the company's investment in Epic Games, a partnership that brings Disney characters into Fortnite and seeks to create more gaming experiences that resonate with younger generations.
Between the lines: In its succession narrative, Disney is highlighting continuity and collaboration.
- Disney said D'Amaro will be supported by "senior executives who have worked seamlessly together for several years," in its official press release.
- Disney's last CEO succession in 2020 sparked an exodus of top talent such as Kevin Mayer. At the top of Tuesday's release, just under D'Amaro's announcement, was the news of entertainment co-chair Dana Walden, the other leading internal contender, being elevated to president and chief creative officer.
- The company also underscored the continued roles of Bergman and ESPN chairman James Pitaro.
What's next: D'Amaro inherits the keys to a kingdom that's ready to prove it has learned from the last handoff and is building toward the future.
- "This is the best job, maybe, as I said, in the world right now to be CEO of The Walt Disney Company," Gorman said on CNBC. "So, I don't know what happened last time, and honestly, it sort of doesn't matter. What matters is now."
