Walt Disney (DIS) announced a strategic reshuffling Wednesday, divvying its business into new units that will accommodate its rising streaming ambitions.
The reorganization leaves Disney with four segments.
The company's advertising operations will also move out of the media networks division and be managed by the new direct-to-consumer segment.
On top of all that, all of Disney's worldwide channels and all global direct-to-consumer businesses will also be included in the new segment, under the eye of Mayer. This will be headed up by Bob Chapek, now chairman of Walt Disney Parks and Resorts.
Kevin Mayer, who has recently served as chief strategy officer, working on the purchases of Pixar, Marvel, Lucasfilm and BamTech, a streaming-focused company, was named chairman of a new Disney division: Direct-to-Consumer and global. It will also include the upcoming ESPN+ streaming service that is to be programmed in partnership with ESPN. In addition to the new unit, there is Media Networks; Studio Entertainment and a segment that combines Parks, Experiences and Consumer Products. Recently, James Pitaro, was named president of ESPN and co-chair of the Disney Media Networks.
The Disney-branded service is expected to launch in 2019 will be home to live-action and animated movies in the pay TV window from Disney, Pixar, Marvel and Lucasfilm, original and exclusive series and movie programming, and Disney film and television libraries.
"Kevin is a proven leader who has played a critical role in bringing together the collection of creative and technological assets that will allow Disney to offer unparalleled entertainment experiences in a direct-to-consumer future", Disney CEO Bob Iger said in a statement.
Walt Disney has a 52-week range of $103.48 to $106.65 and it has a consensus analyst target price of $120.16.