D’Amaro, 54, has been serving as chairman of Disney’s theme parks and experiences division, the unit that generates the majority of the company’s operating income through its parks, cruises, and consumer products. He will succeed longtime CEO Bob Iger, who returned to the role in 2022 after previously leading Disney from 2005 to 2020. The move caps a multiyear succession process closely watched by Wall Street, Hollywood, and fans of the company around the world.

Why D’Amaro?

Under D’Amaro’s leadership, Disney’s parks and experiences business has become the company’s primary profit engine, accounting for more than 70% of operating income despite representing under 40% of total revenue. Investors and analysts have frequently cited that performance as a key reason he rose to the top of Disney’s CEO short list, ahead of entertainment co-chair Dana Walden and other senior executives under consideration. His portfolio has included a roughly $60 billion expansion initiative for resorts and cruise ships, underscoring his central role in Disney’s long-term growth strategy.

D’Amaro’s elevation may signal the growing strategic importance of physical experiences—theme parks, resorts, cruises, and in-person storytelling—to Disney’s future, even as the company continues to push into streaming and digital media. The handoff from Iger also aims to avoid the turmoil that followed the company’s last CEO transition, when another parks leader, Bob Chapek, struggled during a brief and unsettled tenure, a dynamic that has made this succession one of the most scrutinized in corporate America.

Market and industry reaction

Early reaction from investors has been broadly positive, with many on the “buy side” previously indicating a preference for D’Amaro to assume the top job. Wall Street has viewed him as a steady operator whose success in parks could translate into disciplined capital allocation across the broader company. Industry observers note that his relatively low public profile in Hollywood may shape how he approaches negotiations with talent, studios, and partners as Disney navigates a reshaped media landscape.

What to watch for next

Attention will now turn to how D’Amaro structures his leadership team, including who steps into his former role overseeing parks and experiences. Observers will also be watching for signals on Disney’s streaming strategy, ESPN’s future, and whether the company maintains or recalibrates recent price hikes across its parks and services. With the succession question finally resolved, analysts say the new CEO’s early decisions—on investment, content, and customer experience—will quickly define the next chapter of Disney’s century-long story.

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.