Disney’s (DIS) quest for its next CEO is heating up, with the company expected to reveal Bob Iger’s successor by early 2026, a year before his anticipated departure, according to a Yahoo Finance report. This time, Iger insists, he will be leaving for good. The process is being closely overseen by James Gorman, who will assume the role of the entertainment giant’s board chairman on January 2. Gorman joined Disney earlier this year and has made succession planning a top priority.
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DIS Is Considering Internal as Well as External Candidates
There have been rumours that name like Dana Walden, Alan Bergman, Josh D’Amaro, and Jimmy Pitaro have been floated as potential successors internally. However, recently, speculation has shifted to external candidates.
According to a WSJ report, Disney is interviewing a slate of outsiders, including Electronic Arts (EA) CEO Andrew Wilson and two other external candidates. Historically, Disney has favored internal promotions, with its last three CEOs rising through the ranks.
Another strategy that has been discussed, according to the WSJ report, involves a dual-CEO structure, as seen at Netflix (NFLX). However, Macquarie analyst Tim Nollen told Yahoo Finance, “Netflix was able to do it because they were all brought up that way together. And I’m not saying Disney is [not capable], but I don’t know if the top internal candidates were brought up in the same way.”
Why Is DIS Urgently Searching for a New CEO?
The urgency for a seamless transition stem from the fallout of Bob Chapek’s tumultuous tenure, which ended in 2022 after less than three years. Chapek’s time was marked by controversies, talent problems, disputes, and political battles, casting a shadow over Disney’s leadership stability. Chapek was handpicked by Bob Iger as CEO in 2020.
Iger, who returned after Chapek’s exit to steady the ship, emphasized the significance of the decision to choose his successor, calling it one of his “biggest priorities.”
What Is the Target Price for DIS Stock?
Analysts remain cautiously optimistic about DIS stock, with a Moderate Buy consensus rating based on 16 Buys and six Holds. Over the past year, DIS has increased by more than 20%, and the average DIS price target of $125.68 implies an upside potential of 11.6% from current levels.
