Growth dilemma to be resolved! The new CEO of Walt Disney Company (DIS.US) is about to take office. The realization of the "infinite" vision faces a test.

The annual shareholder meeting of the Walt Disney Company (DIS.US) on Wednesday marked the formal transfer of power - Josh D'Amaro took over as Chief Executive Officer (CEO) from Bob Iger, who left behind a long to-do list for his successor. After 20 years at the helm of one of the world's largest entertainment companies, Iger handed over to D'Amaro a business that includes significantly expanded and thriving film studios, continually growing and successful global theme park business, and a profitable streaming service. D'Amaro needs to strengthen Walt Disney Company's foundation in traditional media, a field in which he has relatively less experience and is facing challenges from the decline of traditional television and slowing growth of streaming subscriptions after multiple price hikes. To do this, he will work closely with Dana Walden, who was once the CEO and is now the President and Chief Creative Officer of Walt Disney Company. Her authority has been expanded to oversee the company's film, streaming, and television operations, as well as the growing gaming investments. Walden played a key role in operating Walt Disney Company's streaming platform under Iger's leadership and has a wide network in Hollywood. She will continue to oversee the film business alongside Alan Bergman. D'Amaro, who has worked at Walt Disney Company for 28 years, has been in charge of the company's parks and experiences business over the past five years, which has surpassed the entertainment division to become the company's profit engine. His appointment as CEO signals Walt Disney Company's vision for its future. However, the company recently released weak growth forecasts, citing difficulties in attracting international visitors to its U.S. theme parks, and warned that sports broadcasting costs will continue to rise. The annual meeting marked the formal transfer of power and was D'Amaro's first public address as CEO. Since being announced as the successor on February 3, he has rarely given media interviews but has had phone meetings with prominent bloggers focusing on Walt Disney Company theme parks. Lou Mongello, who participated in one of these talks, stated on his show that D'Amaro spoke about "a unified vision for a massive company" and mentioned that everything from "Fortnite" to theme park vacations, to ESPN and Disney+, will somehow be interconnected in the future. Mongello noted that D'Amaro repeatedly used the word "boundless" to describe his vision. The new CEO did not provide specific details but indicated that he would explore artificial intelligence, augmented reality, and virtual reality to create "more immersive experiences, not only in theme parks but on all platforms and every touchpoint." D'Amaro's challenge is to translate this vision into results. Since Iger returned for his second stint as CEO of Walt Disney Company in 2022, the company's stock performance has been lagging behind the market and peers. Data shows that during this period, Walt Disney Company's stock price has risen by 9%. In the same period, the S&P 500 index has risen by 70%, Netflix (NFLX.US) stock price has more than doubled, and Fox (FOX.US) stock price has almost doubled. This reflects investors' anxiety about the changing landscape of the media industry that was once dominated by Walt Disney Company. After the announcement of D'Amaro's appointment last month, MoffettNathanson media analyst Robert Fishman wrote in a research report titled "A Letter to D'Amaro" that boosting Walt Disney Company's stock price requires "strengthening investor confidence in achieving double-digit revenue growth from streaming" while increasing profit margins. It is worth noting that once Paramount Skydance completes its proposed acquisition of Warner Bros. Discovery, Walt Disney Company will face a new formidable streaming competitor. With the merger of Paramount+ and HBO Max, the two companies will combine the extensive Warner Bros. film library, including "Harry Potter" and DC Comics superhero adaptations, with the Paramount "Yellowstone" universe series, resulting in a global subscriber base of about 200 million, comparable in size to Walt Disney Company's streaming service (excluding ESPN). Analyst Rich Greenfield of LightShed Partners believes that Walt Disney Company could unlock value by splitting off ESPN and ABC, which sometimes simultaneously broadcast sports programs. With tech giants like Amazon.com, Inc. (AMZN.US), Apple Inc. (AAPL.US), and Netflix entering the sports broadcast bidding, competition has become fierce. Greenfield stated that as Walt Disney Company focuses on entertainment, theme parks, and cruise businesses, "ESPN and ABC appear more and more like distractions." D'Amaro has already begun assembling his management team. He promoted Thomas Mazloum, President of Disneyland Resort in California, to oversee the theme park business, which is undergoing a $60 billion expansion plan, including doubling the fleet of cruise ships. Paul Roeder has been appointed as Chief Communications Officer, replacing Kristina Schake. Roeder previously handled public relations for Walt Disney Company's legendary film division and will assist D'Amaro in building closer relationships in Hollywood. Joe Earley and Adam Smith will be responsible for streaming operations under the supervision of Walden and Bergman. Debra O'Connell, who oversees ABC News and local TV stations, will also be in charge of TV production for ABC, Hulu, and National Geographic. The new CEO also needs to deliver on Walt Disney Company's $1.5 billion investment in Epic Games, the publisher of "Fortnite" - a deal facilitated by D'Amaro in 2024. The two companies plan to launch an entertainment universe based on Walt Disney Company brands and characters later this year. In an interview last month, D'Amaro stated that he shares some of the same traits for success as his predecessor. He said, "Iger is somebody who was willing to take big risks, and I am as well, and I always have been - either in personal growth or in the way I navigate through the business world." He cited the decision to build a resort in Abu Dhabi as an example - the first new site for Walt Disney Company since the opening of Shanghai Disneyland Resort in 2016. He added, "When you understand the heritage of this place and the need to continually move forward, to innovate - I feel like I'm ready for this challenge."