Walt Disney Co DIS is initiating a significant change in its film division’s leadership to address recent underperformances, with David Greenbaum of Searchlight Pictures set to replace Sean Bailey.
Bailey has stepped down as the president of Walt Disney Studios Motion Picture Production, marking an end to his 14-year tenure.
This reshuffle comes after a series of disappointing releases, including the recent superhero movie “The Marvels,” which grossed only $206 million globally, significantly less than the typical earnings of a successful comic-book film.
Greenbaum, previously co-president of the critically acclaimed Searchlight Pictures, will now lead Disney Live Action and 20th Century Studios, overseeing significant franchises such as “Avatar” and “Planet of the Apes,” Bloomberg reports.
Greenbaum’s film industry experience includes contributions to acclaimed films like “There Will Be Blood” and securing streaming rights for “Taylor Swift: The Eras Tour.”
Bailey’s new role within Disney will involve producing projects, including “Tron: Ares.”
Under Bailey’s leadership, Disney released blockbuster remakes like “Aladdin” and “The Lion King” but faced challenges with newer releases such as “The Little Mermaid” and “The Haunted Mansion.”
Bailey, known for advocating diversity in Disney’s productions, has recently discussed potential roles with Netflix Inc NFLX and Amazon.Com Inc AMZN, the New York Times reports.
Disney’s move to revamp its movie division’s leadership under CEO Bob Iger reflects a broader strategy to rejuvenate its entertainment offerings and boost performance, especially in the face of challenges from competitors like Comcast Corp’s CMCSA Universal Pictures, which surpassed Disney in global box office earnings in 2023.
The company is also navigating through a cost-cutting phase and restructuring its entertainment operations to focus more on its online video platforms, including Disney+.
This strategic overhaul occurs amidst Disney’s ongoing battle with shareholder activists, notably Nelson Peltz’s Trian Fund Management.
Price Actions: DIS shares are trading higher by 0.46% at $108.15 on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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