Bob Iger brought Disney back to life, yet obstacles still persist

Bob Iger Prepares to Step Down as Disney CEO

After leading The Walt Disney Company for nearly twenty years across two separate terms, Bob Iger is set to pass the CEO baton next month and will officially depart the company by the end of the year.

Disney has selected Josh D'Amaro, currently overseeing the parks division, to take over as chief executive. The transition will occur on March 18 during the annual investor meeting, with Iger remaining as a senior advisor and board member until his retirement in December.

This leadership change marks a significant moment for Disney, closing a chapter defined by Iger’s transformative vision and bold decisions.

Iger’s Legacy at Disney

Bob Iger is widely recognized for reshaping Disney through major acquisitions and creative expansion. Under his leadership, Disney acquired Pixar, Marvel, and Lucasfilm, bringing beloved characters like Captain Marvel, Baby Yoda, and Woody into its fold. These moves fueled both box office and theme park successes.

Iger also guided Disney into the streaming era, launching Disney+ and ESPN+ as traditional TV audiences declined. His reputation as a respected and influential studio head earned him the simple moniker “Bob” throughout Hollywood.

“Bob steadied the company and built it out. He created an absolute powerhouse,” said Disney Chairman James Gorman, reflecting on Iger’s two distinct eras at the helm.

Throughout his tenure, Iger worked to preserve the legacy of Walt Disney, cherishing classic characters like Mickey Mouse, Goofy, Winnie the Pooh, and Moana, while also maintaining the company’s core assets such as ABC and ESPN.

Gorman described Iger’s time as CEO as an era marked by tremendous growth, creative excellence, and strong stewardship, expressing deep gratitude for his leadership.

Challenges and Comebacks

Iger first stepped down as CEO in February 2020, only to return less than two years later after his successor, Bob Chapek, struggled to navigate the company through the COVID-19 pandemic and other challenges. Chapek’s tenure was marred by creative missteps, internal dissent, and a damaging political feud with Florida Governor Ron DeSantis, which affected Disney’s public image.

With Disney facing streaming losses and a declining stock price, the board called Iger back in November 2022 to restore stability and confidence among executives and investors.

“When I returned three years ago, there was a lot to fix. But leading a company is also about preparing it for the future,” Iger said during a recent earnings call.

Restructuring and New Investments

Upon his return, Iger restructured Disney, resulting in thousands of layoffs and giving division leaders more financial responsibility. He also began grooming D’Amaro for leadership, encouraging ambitious growth plans for Disney’s parks and experiences division.

This vision led to a $60 billion, decade-long investment to expand theme parks, resorts, cruise lines, and launch new ventures, including in Abu Dhabi. D’Amaro now leads this initiative, which is crucial as Disney faces shrinking revenue from traditional TV and cable.

Major Deals and Controversies

Iger’s second term was less smooth than his first, as he faced a high-profile proxy battle with activist investors and criticism over Disney’s $71 billion acquisition of 21st Century Fox. While the deal brought valuable properties like “Avatar,” “Deadpool,” and “The Simpsons” under Disney’s umbrella, it also saddled the company with significant debt just before the pandemic.

Despite the controversy, Iger defended the Fox acquisition, highlighting its strategic value in expanding Disney’s intellectual property and streaming presence through Hulu, National Geographic, and FX.

He also played a key role in resolving major Hollywood labor disputes in 2023, negotiating agreements with the Writers Guild of America and SAG-AFTRA. Iger attempted to steer Disney away from political controversies, though not always with complete success.

Looking Ahead: D’Amaro’s Challenges

As D’Amaro prepares to take over, he faces the task of ensuring Disney’s creative output remains strong and that its streaming platforms—Disney+, Hulu, and ESPN—continue to grow in a competitive landscape. Animation studios like Pixar have struggled to consistently produce hits, though sequels such as “Zootopia 2” and “Inside Out 2” have achieved record-breaking box office results.

Maintaining lucrative sports contracts, particularly with the NFL, is also vital for ESPN’s future. Disney recently finalized a deal granting the NFL a 10% stake in ESPN.

With traditional broadcast audiences aging, Disney must also reassess the role of the ABC network, where Iger began his career over five decades ago. Investors are watching closely, hoping D’Amaro can boost Disney’s stock, which has declined 9% this year.

“The stock price doesn’t fairly reflect what [Iger] has done, but it will. And he should get credit for it,” Gorman remarked.

Words of Gratitude and the Road Ahead

In a statement, D’Amaro thanked Disney’s board for their trust and expressed appreciation for Iger’s mentorship and leadership, acknowledging the profound impact Iger has had on the company and its global audience.