Disney’s new CEO, Josh D’Amaro, hit with multiple early crises

The Walt Disney Company CEO Josh D’Amaro has run into early turbulence in just over a week into his new role, as two major billion-dollar tech bets began to unravel, raising concerns about the company’s digital strategy.

First setback: A landmark partnership with OpenAI collapsed after the company abruptly shut down its Sora video generator to streamline its product lineup. 

The deal, announced last year, was expected to include a $1 billion investment and a three-year collaboration to create AI-generated short videos featuring franchises like Star Wars and Marvel for Disney+. 

However, no money had been exchanged. Analysts say Disney may now turn to alternatives such as Runway AI, Pika AI, or Google.

Second setback: Epic Games cut 1,000 jobs, pointing to a drop in engagement for its hit game Fortnite. Disney had invested $1.5 billion to build a gaming universe tied to its characters, a project D’Amaro helped design.

Adding pressure, a controversy surrounding ABC’s The Bachelorette led to the season’s cancellation, amplifying reputational risks.

Despite setbacks, D’Amaro, who succeeded Bob Iger on March 18, continues to push a vision of a more immersive, tech-driven Disney.