Disney announces strategic reorganization into four business segments
The Walt Disney Company announced a strategic reorganization of its businesses into four segments: the newly-formed Direct-to-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment. The reorganization is effective immediately. Robert Iger, Chairman and CEO of The Walt Disney Company, said, "With our unparalleled Studio and Media Networks serving as content engines for the Company, we are combining the management of our direct-to-consumer distribution platforms, technology and international operations to deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before. In addition, we are merging our Consumer Products and Parks operations under one segment, combining strategy and resources to produce even more compelling products and experiences that bring our stories and characters to life for consumers." Kevin Mayer, who has served as Disney's Chief Strategy Officer since 2015, has been named Chairman of the new Direct-to-Consumer and International business segment. Bob Chapek, Chairman, Walt Disney Parks and Resorts, will assume additional responsibility for all of Disney's consumer products operations globally, including licensing and Disney stores, as Chairman of the new Parks, Experiences and Consumer Products business segment. Disney's worldwide consumer products business will be merged with Walt Disney Parks and Resorts under Chapek. The Disney Media Networks business segment is co-chaired by Ben Sherwood, President, Disney ABC Television Group, and James Pitaro, who was recently named President of ESPN and previously served as Chairman, Disney Consumer Products and Interactive Media. The Media Networks segment will remain virtually the same, with the exception of the international Disney Channel operations that are moving to the Direct-to-Consumer and International business segment along with management of global advertising sales/technology. The Studio Entertainment business segment is led by Alan F. Horn, Chairman, The Walt Disney Studios, and remains virtually the same, with the exception of the management of program sales moving to the Direct-to-Consumer and International business segment. The company said it expects to transition to financial reporting under the new structure by the beginning of fiscal 2019.