Case
Teaching Notes
Abstract
The case follows the restructuring efforts of the Walt Disney Company’s (Disney) media and entertainment division, under the leadership of Robert A. Chapek, CEO of Disney. In October 2020, Disney restructured the media and entertainment division to emphasize the direct-to-consumer strategy through Disney+ (Disney’s online streaming service). A leading shareholder and activist, Dan Loeb, suggested that Chapek should also invest dividend capital into content production for Disney+ and shift entirely to streaming videos and eliminate cinema halls from its distribution channel. Experts were concerned both with the restructuring efforts and Disney’s focus on primarily the online video streaming business to compete against Netflix. Will the restructuring of Disney’s media and entertainment division help Chapek grow Disney+? To what extent should Chapek follow the advice of Loeb? Should he switch Disney media completely towards streaming?
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