Disney has chosen a new CEO. He increased revenue in his division to a record high

The Board of Directors of Walt Disney has chosen a new CEO of the company: the head of Disney Experiences Josh D'Amaro will become him. He is responsible for theme parks and cruise business, which have become the largest source of profit for the company since 2020, the Wall Street Journal reports. D'Amaro's division achieved record revenue last quarter. Investors reacted to Disney's choice without enthusiasm.

Josh D'Amaro will succeed Bob Iger and become the ninth CEO of Disney in its 102-year history. This position involves not only managing a large-scale empire, but also the role of the public face of the company under the scrutiny of investors and the media, writes WSJ.

D'Amaro will take office on March 18, the day of Disney's annual shareholder meeting, the company said in a statement. Eiger will remain a senior advisor and member of the company's board of directors for a transition period until his departure on Dec. 31, 2026, Disney said. WSJ wrote that Iger plans to step aside ahead of the end of his contract.

D'Amaro beat out Disney Entertainment co-chairman Dana Walden in the race for the CEO position. She was named president and chief creative officer of the company. Effective March 18, she will report directly to Josh D'Amaro and focus on storytelling and Disney's content ecosystem.

Now shareholders are waiting for 54-year-old Josh D'Amaro to come up with a clear plan for the company's growth and implement it: Disney stock is now worth almost half its 2021 peak and has actually been stagnant for about three years, the WSJ notes.

D'Amaro's appointment reflects a shift in Disney's economics: while previously the main profit was generated by TV channels, now parks and cruises have become the key driver. Last fiscal year, the Experiences segment accounted for 38% of the company's revenue and 57% of its operating profit, and its investment in its development through 2033 will total $60 billion - a record for Disney, according to the publication. Last quarter, Experiences posted record revenue of $10 billion.

According to WSJ's source, D'Amaro's vision for Disney's future includes a more prominent role for video games and the incorporation of gaming technology into the company's creative processes. In 2024, he backed Disney's $1.5 billion investment in video game developer Epic Games and oversaw a partnership with the developer of Fortnite, one of the world's most popular online games.

On February 3, Disney's securities were 1.5% cheaper on the background of this news. A day earlier, after the publication of reports, they fell by 7.4%. Over the past 12 months, the securities have been down by almost 10%.

Of the 33 analysts covering Disney securities, 25 advise buying them, seven advise holding them in a portfolio, and only one recommends selling. The average target price of analysts suggests a rise of almost 28% relative to the closing price on February 2.

This article was AI-translated and verified by a human editor