The search for Disney’s (DIS) next CEO will reach a climax next year, with the media and entertainment giant expected to announce a new chief executive in early 2026.
If that period holds, investors will know who will replace current CEO Bob Iger about a year before his scheduled retirement at the end of the year. Now, the executive has announced that he is retiring for good.
KAPOLEI, HAWAII – NOVEMBER 21: Bob Iger poses for a photo while attending the world premiere of Moana 2 at the Lanikuhonua Cultural Institute on November 21, 2024 in Kapolei, Hawaii. (Photo by Darryl Oumi/Getty Images) ·Darryl Oumi (via Getty Images)
James Gorman is set to become chairman of Disney’s board on January 2, replacing former Nike CEO Mark Parker, with the transition process consistently branded as a “top priority” in the new year. There is.
Gorman, who oversaw his own succession process at Morgan Stanley, first joined Disney’s board in February, just two months before Disney successfully fended off activist investor Nelson Peltz. Ta. He has been leading Disney’s succession planning committee since August.
Rumors had previously circulated that names within the company were being thrown around, including Disney Entertainment co-chairmen Dana Walden and Alan Bergman. Josh D’Amaro, Disney’s Head of Parks and Experiences. And ESPN Chairman Jimmy Pitaro could replace Iger.
But recently, speculation has shifted to outside names.
“I think they’re actively looking outward,” Macquarie analyst Tim Nolen told Yahoo Finance in an interview. “James Gorman is definitely an outsider. He himself only joined the board a year ago, so I’m sure they’ll be willing to look outside the company.”
Los Angeles, California – June 10: EA CEO Andrew Wilson speaks at Electronic Arts’ EA Play event at the Hollywood Palladium on June 10, 2017 in Los Angeles, California. The E3 gaming conference begins on Tuesday, June 13th. Wilson is reportedly being considered for the top job at Disney. (Photo by Christian Petersen/Getty Images) ·Christian Petersen, via Getty Images
According to a recent report in the Wall Street Journal, Disney is interviewing outside candidates, including Electronic Arts (EA) CEO Andrew Wilson. EA did not respond to Yahoo Finance’s request for comment on this rumor. At least two other external candidates are also being considered for the top position, the paper said.
Historically, Disney has promoted almost exclusively from within, with the past three CEOs rising through the ranks of the media giant.
“They have a natural tendency to do things that way,” Nolen said. “However, Disney is a vast, large company, and internal candidates run separate, independent divisions, not Disney as a whole.”
“So, can the same people who run the parks also run the networks? Can the same people who run streaming and ESPN also run the parks? I don’t know if that’s the best option,” he cautioned. “I’m not saying it’s not. I don’t know what the best course of action is.”
Disney had previously discussed a dual-CEO strategy that had worked well for rival Netflix (NFLX), the paper said. But Disney’s management team doesn’t traditionally operate in that way, so this scenario could quickly break down.
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“Netflix was able to do that because they were all raised that way together,” Nolen said. “I’m not saying Disney doesn’t have the ability, but I don’t know if the top internal candidates were developed the same way.”
Finding a new CEO has been one of the company’s top priorities since Bob Chapek’s succession disaster nearly five years ago.
“I think it’s safe to assume that I’m always thinking about (the CEO successor),” Iger said on a podcast with Kelly Ripa earlier this summer. “To say ‘I’m obsessed with it’ is probably an understatement. In fact, when I returned the board and I agreed that it was one of our biggest (priorities), if not the biggest. It has been established that there will be one.”
Chapek was selected as CEO by Iger in 2020, but was fired in November 2022 after less than three years in office, a period marred by political strife, top talent issues and a controversial reorganization. It was.
“It was never my intention to be pulled back,” Mr. Iger told Mr. Ripa about returning to the chief executive role. “This company means a lot to me and they answered my calls so well.”
Since Mr. Iger’s return, Disney has faced some difficult times, especially as the industry tries to navigate the transition away from linear television.
Creative challenges at the box office, fundamental changes at ESPN, antitrust hurdles to future sports joint ventures and other difficulties are putting pressure on the company’s long-term prospects for investors.
And while stocks have recovered from last year’s multi-year lows, they still underperform the broader market. The stock is up about 25% since the beginning of the year, compared with a 27% rise in the S&P 500 index.
Shareholders are also increasingly concerned about the potential for Disney’s theme park business to slow due to higher prices and weaker demand. In August, the company reported a 6% year-on-year decline in profit for the three months ended June 29, as performance at its domestic parks fell short of expectations.
Those trends reversed in the latest quarter, but park pricing will continue to be a challenge as new competition from Comcast (CMCSA) Universal threatens to weigh on sales.
Cruise ships, on the other hand, are set to be a lucrative opportunity over the next five years and will be yet another area of the business that the next CEO will have to cultivate.
But overall, Disney’s strategy is already set thanks to Iger’s return.
“The next person just has to come in and run things the way Iger has set them out,” Nolen said. “It’s simple: don’t let the wheels fall off.”
Alexandra Canal is a senior reporter at Yahoo Finance. X @allie_canal, follow her on LinkedIn and email alexandra.canal@yahoofinance.com.
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Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.
