Welcome to the CEO suite, Josh. In less than a week since taking over the coveted job of CEO of The Walt Disney Co., Josh D’Amaro finds himself navigating a flurry of major crises that will impact the company’s strategic focus, its content, and its experiences division.
From the collapse of a $1 billion OpenAI partnership to a strategic shift from partner Epic Games, from a dramatic last-minute decision to pull an essentially completed season of ABC’s The Bachelorette to a Middle East theme park that may be impacted by the war in Iran, there is no part of Disney’s business that is unscathed.
The OpenAI Collapse: A $1 Billion Bet Gone Sour
Twenty-four hours before the news broke that the $1 billion Disney-OpenAI partnership was dead, staff at both companies were still working to develop their plan to bring Disney’s characters to the Sora video platform and Disney+. On Tuesday, OpenAI shuttered Sora, and Disney pulled out of the agreement, which hadn’t yet closed.
The partnership was a billion-dollar bet from D’Amaro’s predecessor Bob Iger, who told Wall Street analysts that if AI is going to happen, Disney needed to embrace it aggressively. However, the partnerships drew angst from creatives wary of the “slop” that Sora produced.
Disney said Tuesday that “we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators.” But with OpenAI out, it isn’t clear who else they would partner with in the near term.
Epic Games: A $1.5 Billion Investment Under Pressure
Tuesday also brought a double-whammy for D’Amaro. Epic Games slashed about 20 percent of its staff—more than 1,000 jobs—citing problems with its flagship Fortnite franchise.
“The downturn in Fortnite engagement that started in 2025 means we’re spending significantly more than we’re making, and we have to make major cuts to keep the company funded,” Epic Games CEO Tim Sweeney told staff in a blunt memo.
D’Amaro was the driving force behind Disney’s $1.5 billion Epic Games investment (he joined Epic’s board as an observer), and a planned IP-laden Disney universe connected to Fortnite. Sweeney told THR last month that the project is progressing, though the companies can’t share details just yet.
“Josh and Disney really get it and have a crisp understanding of how the future of their film and TV IP, Disney+ and games fit together into a digital ecosystem and tie into parks and other things,” Sweeney said.
But Epic’s cuts raise questions about the future of the project, especially if Fortnite‘s troubles continue. Conversely, perhaps Disney’s trove of characters—Marvel, Star Wars, and other franchises—can be the driving force that turns Fortnite around.
The Bachelorette: A High-Profile Dispute
ABC pulled The Bachelorette from its lineup after video surfaced of an alleged domestic violence incident involving star Taylor Frankie Paul. Sources note that the decision was made a couple rungs below D’Amaro, though the move could cost Disney tens of millions of dollars. There is already speculation that Disney could try to salvage the show by putting it exclusively on Hulu. But a high-profile dispute around one of ABC’s flagship franchises is not what the company needs at the moment.
Abu Dhabi: A Theme Park in a War Zone
The challenges Disney faces today pale in comparison to the COVID-19 pandemic, but once again international affairs are finding a way to impact Disney’s planning. Last year Disney announced plans for a new theme park in Abu Dhabi, funded and built by the Miral Group but developed with Disney.
Now, of course, Abu Dhabi finds itself in the middle of the U.S. and Israel’s war on Iran, with missiles and drones being sent toward the UAE, and the long-term ramifications of the war still unknown.
At Disney’s annual meeting last week, in a video that served as an introduction to his tenure as CEO, D’Amaro alluded to the Abu Dhabi project as “the first new park in a decade in a brand new corner of the world” as a rendering of the park appeared on screen. He did not mention Abu Dhabi.
The park is still many years away, but it is yet another challenge for D’Amaro to navigate.
