Lucasfilm President Kathleen Kennedy To Step Down: How Move Could Impact Star Wars Franchise, Disney Stock

Longtime movie producer Kathleen Kennedy is planning to step down as head of Lucasfilm after 13 years, a move that could dramatically alter the future of the Star Wars franchise.

What Happened: Kennedy's role at The Walt Disney Company DIS and Lucasfilm has received a mixed reaction for Star Wars fans.

After Disney acquired Lucasfilm in 2012, Kennedy was tasked with leading the unit. During her leadership, the company released multiple Star Wars movies and shows, plus a fifth Indiana Jones movie.

Kennedy is now expected to step down by the end of the year, Puck News reports. A source close to Kennedy told Variety the report was "pure speculation" and said the Lucasfilm president has not decided if she will step down at the end of 2025 when her current contract ends.

Kennedy had planned to leave Lucasfilm last year before deciding to stay on for one more year, the report said.

Dave Filoni and Jon Favreau, who have worked on Disney+ shows that take place in the Star Wars universe, could be potential successors if they were interested in the role, according to the report.

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Why It's Important: Kennedy's role with Disney could go down with mixed reviews despite "The Force Awakens" being the highest-grossing film in domestic box office history with nearly $1 billion. Her launching of several Disney+ shows — "The Mandalorian," "The Book of Boba Fett," "Ahsoka" and more — cements her legacy.

In recent years, Star Wars fans have been less impressed. There have been no theatrical releases for Star Wars since 2019. "The Rise of Skywalker," the last feature-length film in the series, grossed $515.2 million domestically and $1.07 billion worldwide. The 2018 release "Solo: A Star Wars Story" grossed $213.8 million domestically and $392.9 million worldwide. The film is said to be the first Star Wars movie to ever lose money during a theatrical run, per Variety.

"Indiana Jones and the Dial of Destiny," which grossed $383 million globally, was also a money loser for the studio.

Kennedy was also behind some TV show misses. Disney canceled "The Acolyte," for example, after one season.

Several directors have been attached to new Star Wars films and TV shows in recent years. However, several projects failed to gain traction outside of "The Mandalorian and Grogu," which is currently set for a May 22, 2026 theatrical release. The film will bring the popular character known as Baby Yoda to big screens next year.

Last year, Elon Musk criticized Kennedy for being "more deadly than the Death Star." He also labeled her a "franchise killer" previously.

The comments come after recent box office misses. Musk says Kennedy has pushed forward a narrative of more progressive themes and female protagonists in Star Wars storylines. He also previously said Kennedy was "super bigoted against men."

On Tuesday, Musk replied to a clip of a "South Park" sketch mocking Kennedy's push to put females and LGBTQ+ characters in movies and TV shows with a bullseye emoji.

Price Action: Disney stock trades at $109.80 Tuesday versus a 52-week trading range of $83.91 to $123.74. Disney stock is up 2% over the last year.

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