Disney CEO Frontrunner Thomas Staggs Resigns  

U.S. entertainment giant Walt Disney Corp said Monday that chief operating officer Thomas Staggs, viewed as the likely successor to chief executive Bob Iger, will step down next month.

Staggs, who previously served as chief financial officer and head of Disney's important parks and resorts division, had been seen as the frontrunner to replace Iger, who is scheduled to retire in two years.

No reason was given for his departure, but Disney made clear that it was now looking elsewhere for Iger's replacement.  

In February 2015, Disney promoted Staggs to chief operating officer, tapping him over chief financial officer Jay Rasulo, who later left Disney. 

Staggs has "made important contributions to this company," Iger said. "I'm proud of what we've accomplished together, immensely grateful for the privilege of working with him, and confident that he will be enormously successful in whatever opportunity he chooses."

In light of the unexpected news, Disney will "broaden the scope of its succession planning process to identify and evaluate a robust slate of candidates for consideration," the company said.

The shift comes as Disney faces tough questions over the future of its ESPN sports network given the shifts in cable broadcasting business. The move also comes as Disney prepares to unveil Shanghai Disneyland.

Disney shares fell 1.8 percent to $96.95 in after-hours trade.