Walt Disney restructures entertainment businesses to boost streaming

(Reuters) – Walt Disney Co said on Monday it had restructured its media and entertainment businesses to accelerate growth of Disney+ and other streaming media efforts that are rising in popularity with consumers.

Disney said it would manage media and entertainment programming under three separate groups – studios, general entertainment and sports — and concentrate distribution and commercialization under a global unit.

The move came days after activist investor Daniel Loeb urged Disney to forgo a dividend payment and double its programming investment in streaming.

Disney shares rose nearly 5 percent in after-hours trading to $130.76.

Kareem Daniel, formerly president of consumer products, games and publishing, will oversee Disney’s new media and entertainment distribution group, the company said.

(Editing by Aurora Ellis)