Walt Disney has named Josh D'Amaro, the head of its amusement park business, as its new chief executive.

D'Amaro, a 28-year veteran of the company, will replace current boss Bob Iger. He is due to start in the new role on 18 March.

In selecting D'Amaro, Disney has turned to the leader of the part of its business that has delivered the most reliable profits in recent years, as the company works to navigate the streaming landscape.

The decision ends a succession puzzle for the entertainment giant, which Iger has led for roughly two decades, except for a brief interlude that ended in 2022 when the board ousted his successor and asked Iger to return.

Iger quickly set about restructuring the firm, aiming to tackle ballooning expenses in the streaming, television, and film businesses, regain momentum for sports-focused ESPN, and expand its parks and cruise lines.

In the announcement, Iger said he was "proud to step away at a moment when Disney's future has never been brighter".

D'Amaro joined the company in 1998 at Disneyland Resort, before rising to his current position as chairman of the Disney Experiences division, which has 185,000 employees and generated $36bn in revenue last year.

In the role, the 54-year-old oversees 12 theme parks and 54 resorts globally.

He has handled projects such as World of Frozen and Star Wars: Galaxy's Edge, and has managed digital ventures, including Disney's collaboration with the firm behind Fortnite.

In an interview on CNBC, Disney board chair James Gorman said D'Amaro brought not just financial skills but "great creative touch".

As chief executive, D'Amaro will take on the top role at a time when US media companies are facing increased political pressure.

Disney itself has been a prime target, blasted in recent years by Republicans such as Florida Governor Ron DeSantis for promoting "woke" values.

The company most recently drew headlines when it temporarily suspended comedian Jimmy Kimmel, a decision linked to comments over the killing of conservative activist Charlie Kirk.

Disney's parks business in the US has also drawn attention for rising visitor costs, while investors have been frustrated by its share price, which has lagged that of other publicly listed firms.

Shares dipped 1% in early trading after the announcement.

D'Amaro will receive a $2.5m base salary and Disney shares valued at at least $26.3m annually, according to company filings. The firm has also granted him a $9.7m bonus this year for the new role.

Disney also named Dana Walden, currently co-chair of its entertainment business, to a new role as chief creative officer, reporting to D'Amaro.

Walden, who is known outside of work for her friendship with former Vice President Kamala Harris, had been seen as D'Amaro's chief rival for the top job.

Disney is trying to avoid a repeat of 2020's botched hand-off.

That year, it also elevated the successful head of the theme parks business, Bob Chapek, to chief executive. But within weeks, the Covid-19 pandemic had forced the company to shut its doors.

His tenure was marked by strains on the content side of the business, with costs rising, as well as the brand's involvement in several high-profile public disputes, including with actress Scarlett Johansson.

Analyst Paolo Pescatore warned that, despite the profits delivered by parks, the key to Disney's success lies in its content.

"Disney can ill afford another messy handover," he said. "While it is a strong endorsement of D'Amaro's abilities to elevate Experiences to the fore.... he should not lose sight of Disney's core capabilities."