Dan Coatsworth, head of markets at AJ Bell, said: “Disney has addressed a key question hanging over the business with the announcement of Josh D’Amaro as the man to replace Bob Iger when he retires for the second time next month.
“Investors will be hoping this handover is smoother than the previous time Iger surrendered the reins.
“His successor back in February 2020, Bob Chapek, lasted a little more than two years before Iger was called back by Disney to fix a business which had gone off course – albeit in the midst of a global pandemic.
“Among the criticisms levelled at Chapek were over-centralised decision making affecting staff morale, mounting streaming losses and a perception that visitors to its parks were not being treated particularly well.
“This is something D’Amaro is unlikely to fall foul of given his experience heading up the amusement park business.
“For his part, Iger has managed to get the streaming services to turn a profit since returning but, judged by the key arbiter of the share price, his second tenure has been a disappointment.
“A total return of just 11.5 per cent lacks any stardust and is dwarfed by the 84 per cent chalked up by the S&P 500 over the same period.
“The initial market reaction to D’Amaro’s appointment doesn’t imply huge confidence in his ability to find a magic wand to revive the company’s fortunes on the stock market.
“D’Amaro will have to steer a course through a difficult political environment and a highly competitive entertainment landscape.
“Disney is a company with an enviable cache of content and a brand with huge heritage, but its recent struggles show that is no guarantee of success.”
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