Disney Media Networks Co-Chairman to Resign

By Ben Fritz and Merissa Marr 

A top Walt Disney Co. executive unexpectedly said Tuesday she will be resigning, simultaneously adding clarity to the succession race for chief executive at the media giant and opening up one of the most powerful jobs in the television business.

Disney Media Networks co-Chairman Anne Sweeney, who oversees the company's ABC broadcast network and all of its cable channels except for ESPN, said she would step down at the end of the year to pursue a career in television directing.

Ms. Sweeney, an 18-year company veteran, said in an interview that she expects Disney Chief Executive Robert Iger to name her successor in the next few months.

The announcement comes as the cable channels under Ms. Sweeney have been performing well and expanding overseas, but the ABC network has seen its revenue and operating income decline.

Ms. Sweeney was once considered a contender to succeed Mr. Iger, who plans to retire in June 2016. But her decision to resign caps a decline in her standing among internal rivals, according to people at the company. Chief Financial Officer Jay Rasulo and Parks and Resorts chief Thomas Staggs are now viewed as the top candidates.

Ms. Sweeney said she didn't want the CEO job and never discussed it with Mr. Iger or Disney's board. "Many people wanted that job for me, but I wanted to become closer to the creative process," she said.

A key player for Disney in increasingly contentious distribution negotiations throughout the television business, Ms. Sweeney pointed to a recent hard-fought pact with Dish Network Corp. as an example of the challenges facing her successor.

Under the agreement, Dish agreed to disable its DVRs' commercial-skipping technology for ABC shows until three days after they air and Disney gave the satellite broadcaster rights to its networks for a new Internet-based TV service.

"One of the most important things...is creating the template for the future of television," she said.

Among the most powerful women in the entertainment industry since ascending to her current post in 2004, Ms. Sweeney is the only female leading a major operating unit at Disney.

Her new career direction surprised many in Hollywood, since the 56-year-old has no background in directing. "I have a lot to learn, and I know that," she said.

Write to Ben Fritz at [e-mail] and Merissa Marr at [e-mail]

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