Disney's (NYSE:DIS) succession dilemma: Who will succeed Bob Iger as CEO?

The question of who will succeed Bob Iger as CEO of The Walt Disney Company (DIS) continues to be a key topic for institutional investors. As the media group faces leadership uncertainty, succession planning has taken center stage. Given the complexity of the company's current challenges, investors and shareholders are particularly keen to see who will lead Disney next.

Disney extends Iger's term to strengthen succession efforts

Bob Iger, who returned as CEO in November 2022 with a two-year commitment, extended his term until July 2023, or 2026. This extension gives Disney more time to find a suitable successor.

To address this important task, Disney recently appointed board member and former Morgan Stanley CEO James Gorman to lead its succession planning committee, a move that signals the company's commitment to a thorough and strategic selection process.

Goldman Sachs analyst highlights succession problem

In the transition from internal preparations, Goldman Sachs analyst Michael Ng emphasized the importance of finding a successor to Iger during the Goldman Sachs Communacopia and Technology Conference in a conversation with Yahoo FinanceNg explained that leadership decisions directly impact the company's strategy.

Disney uses its internal talent pool in the CEO search

Despite the urgency of the matter, Ng remained optimistic about Disney's succession planning process, noting that Disney has a deep pool of talented executives across its various business units, including theme parks, film and television studios and ESPN.

This internal talent gives Disney an advantage because these leaders are already familiar with the company culture and strategic direction.

Disney is considering four internal candidates for the CEO position

If we shift the focus to the potential candidates, Yahoo Finance According to the report, four internal candidates are currently being considered for the top job. They include Dana Walden and Alan Bergman, co-heads of entertainment, Josh D'Amaro, head of park operations, and ESPN chairman Jimmy Pitaro.

Although Walden is considered the favorite for the position, the decision is far from being made. In addition, the company could still decide on an external candidate who brings a fresh perspective to the leadership.

Disney faces growing challenges

As Disney searches for Iger's successor, it faces growing business challenges, including the industry's shift away from linear television, box office woes and fundamental changes at ESPN.

Additionally, Disney's park business is showing signs of slowing due to falling demand. These obstacles underscore the importance of finding a leader who can effectively navigate these turbulent waters.

Goldman Sachs analyst remains optimistic about DIS

Despite these challenges, analyst Ng remains optimistic about Disney's long-term prospects, citing the company's potential to break through the competitive streaming landscape and its strong portfolio of sports rights secured through the end of the decade as key advantages.

This positive perspective counterbalances the uncertainties that accompany the change in leadership.

What is the price target for DIS shares?

Analysts remain bullish on DIS shares, issuing a Strong Buy consensus rating based on 19 Buy recommendations and four Hold recommendations. Over the past year, DIS has gained more than 7%, and the average DIS price target of $118.53 implies 34.1% upside potential from current levels.

View more DIS analyst ratings