Disney Names Board Member Gorman to Lead Committee Tasked With Finding Iger's Successor — Update

By Denny Jacob

Walt Disney Co. has tapped former Morgan Stanley CEO James Gorman to lead the search for Bob Iger's successor.

Gorman, who oversaw the recent succession process at the bank, joined Disney's board earlier this year, when Iger aimed to set Disney on steady footing amid a battle with activist investors.

The entertainment company said its succession committee has met six times in fiscal 2024 for its deliberations, which began in January 2023. Disney must find its next leader before Iger's contract runs out in 2026.

The Wall Street Journal reported that the top internal candidates to succeed Iger include Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment, which includes the cable, streaming and studio units; Josh D'Amaro, chairman of Disney Experiences, which includes Disney's lucrative theme parks; and Jimmy Pitaro, chairman of ESPN, which is in the throes of a high-stakes pivot to streaming.

Iger is currently in his second stint as CEO after his chosen successor, Bob Chapek, was ousted in 2022. Iger returned in November 2022 and said he was coming back for two years. By the following summer, the board extended his contract through 2026.

Disney has pushed through big changes under Iger's latest term as CEO. The company's streaming unit, which includes flagship platform Disney+, general entertainment service Hulu and the sports-focused ESPN+, recently posted its first-ever streaming profit. While its quarterly streaming profit was small, it marked a shift from years of steep losses as the streaming wars between competitors picked up.

The Burbank, Calif., company earlier this month unveiled details of the tens of billions it plans to invest in its Experiences unit--which includes Disney's six global theme-park resorts, a cruise line, consumer-products sales, video-game licensing and other businesses--at its three-day D23 Expo. The company is under pressure to offer fans new, exciting attractions to justify recent increases to ticket prices and other rising costs.

Other streaming-related endeavors have recently faced hurdles. A judge on Friday blocked Warner Bros. Discovery, Fox Corp. and Disney's new sports streaming service from launching later this month.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

August 21, 2024 17:48 ET (21:48 GMT)

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