Disney Announces Business Reorganization

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. asset / ˈæs ɛt / (n) – a property that is considered valuable

    The company plans to sell some of its assets to another company.

  2. contend / kənˈtɛnd / (v) – to compete with someone or something

    We put up a new food business to contend with other small businesses.

  3. at the helm / æt ðə hɛlm / (idiom) – in charge or in control of something

    She is the first woman to be at the helm of the company.

  4. look on the bright side / lʊk ɒn ðə braɪt saɪd / (idiom) – to consider the positive side of a situation

    Our new business may not be doing well now, but let’s look on the bright side—we’re learning a lot.

  5. shareholder / ˈʃɛərˌhoʊl dər / (n) – a person who owns part of a company’s shares

    The company’s shares were equally divided among the shareholders.


Read the text below.

Disney has announced its plans for reorganization to further expand its business.

Last March, the entertainment giant revealed that it will reorganize its business structure and add a new segment called Direct-to-Consumer and International. This segment will cover the technology and programs that facilitate Disney’s streaming activities.

Aside from the new segment, Disney’s new structure will include three other segments—the combined Parks, Experiences, and Consumer Products; Media Networks; and Studio Entertainment.

According to a Disney representative, the new segment will be in charge of global advertising sales for Disney’s media assets like ESPN, ABC, and Disney channels. It will also include the program sales operations, which includes the distribution of film and TV content around the world. The addition of this segment is an indication of Disney’s intention to contend with online streaming platform Netflix not only in the United States, but also globally.

Kevin Mayer, Disney’s former chief strategy officer and head of the acquisition of Pixar and Marvel, will be at the helm of the new segment.

Some have expressed their reservations about Disney’s capability to rival Netflix, but Disney CEO Robert Iger is looking on the bright side. He said that he is confident that the company’s several assets can give them a competitive edge.

According to Iger, the company aims to develop a structure that will cater to an international market. Through this new structure, Disney is also hoping to boost growth and shareholder value.

Although no specific date has been set for the reorganization, a representative has said that the change will take effect immediately.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you consider Disney’s reorganization a good move? Why or why not?
• What do you think are the necessary preparations that Disney has to make before the reorganization takes effect? Discuss.

Discussion B

• Do you think it is always necessary for a company to undergo reorganization? Explain.
• How can a company effectively adjust to a new business structure?