Walt Disney announces reorganization to focus on streaming

about 1 year ago - Direct link

Disney is going all-in on streaming media. 

On Monday, the company announced a massive reorganization of its media and entertainment business that will focus on developing productions that will debut on its streaming and broadcast services. And Disney’s media businesses, ads and distribution, and Disney+, will now operate under the same business unit, the company said.

Its major reorganization comes just days after activist investor Dan Loeb, a major investor in the company through his Third Point Capital hedge fund, called on Disney to cancel its dividend and redirect more investments into streaming.

Wall Street has already given its seal of approval to Disney’s new move, sending shares up nearly 6% in after-hours trading.

Disney’s announcement follows a significant reorganization of its release schedule to address new realities, including a collapsing theatrical release business; production issues; and the runaway success of its streaming service — all caused or accelerated by the national failure to effectively address the COVID-19 pandemic.

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