Analysts were largely unsurprised on Tuesday after media and entertainment giant Disney (DIS) picked Josh D’Amaro as its next chief executive, a move that was widely expected by Wall Street, as major media houses reported the news over the weekend.
But what blindsided them was Dana Walden’s appointment to the new roles of president and creative chief of the “Mouse House.”
Like former CEO Bob Chapek, who also came from the Experiences division, D’Amaro’s appointment slightly feels like “history repeating itself.”
Chapek lacked experience in movie production and television networks, and under his regime, the company witnessed a streak of bad earnings reports and recorded heavy losses in the streaming division, which ultimately triggered the second coming of Bob Iger.
But this time, things could be different.
D’Amaro and Walden were the top two contenders for the CEO job. Albeit it’s not a co-CEO scenario, the leadership announcement, while clearly defining who the top boss is and who is second-in-command, gives the impression that their combined expertise could benefit the company.
“While D’Amaro lacks experience on the creative side of the business, Walden’s elevation directly addresses any content leadership gap, pairing D’Amaro’s operational strengths with proven creative expertise,” analysts at TD Cowen said. “It will be critical for the two executives to be able to forge a strong partnership.”
Wells Fargo views the leadership rejig to be positive for investors when compared to a co-CEO arrangement or a scenario under which Iger’s contract is extended.
“Best succession since HBO’s,” Wells Fargo said on Tuesday.
left to right: James P. Gorman, Josh D’Amaro, Dana Walden, Robert A. Iger (The Walt Disney Company) 
Evercore ISI was surprised by Iger’s earlier-than-expected transition news and thinks it would give D’Amaro enough time to set strategy and align the organization under his vision.
“D’Amaro’s experience running Disney’s largest segment as chairman of Disney Experiences, along with his track record expanding the business globally, speaks to his ability to drive durable growth while balancing investment, returns, and brand stewardship,” Evercore said.
Shares of Disney are marginally down on Tuesday, a day after recording more than a 7% decline in value, after it provided a lackluster current quarter forecast.