Kevin Mayer, Former Head of Disney Streaming, Quits as TikTok CEO

by Ray Keating

News

DisneyBizJournal.com

August 27, 2020

Early this morning, The Wall Street Journal reported that Kevin Mayer resigned as CEO of TikTok. The social media platform is an app for easily making and sharing short videos.

Mayer, the former head of Disney’s streaming business, resigned his job at Disney in May of this year, after he had been passed over for the House of Mouse CEO job, to take the TikTok leadership position.

The Journal reported, “In a letter to staff, Mr. Mayer said the political environment had ‘sharply changed’ in recent weeks and the role of CEO would look very different after an expected sale of TikTok’s U.S. business.”

So, Mayer only lasted for three months in the TikTok job.

DisneyBizJournal.com ran an analysis piece early this month – “From King of Disney Streaming to TikTok Troubles: The Strange Journey of Kevin Mayer” – on Mayer’s wild eight-month-plus ride from heading up Disney streaming to becoming the TikTok CEO to the dramatic political shift against TikTok in the U.S. given the company’s Chinese ties.

The Journal noted, “Vanessa Pappas, currently the U.S. general manager of the app, would serve as interim head for TikTok in his absence…”

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Also, get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.

From King of Disney Streaming to TikTok Troubles: The Strange Journey of Kevin Mayer

by Ray Keating

Analysis

DisneyBizJournal.com

August 3, 2020

It’s been a wild eight-plus months for Kevin Mayer, the former head of Disney’s streaming business.

In November of last year, Disney+ launched to great acclaim, and subscriber numbers ran far ahead of expectations. The new streaming service and Hulu were under the leadership of Mayer at the Walt Disney Company. He was riding high, and most watchers expected him to be named Bob Iger’s successor to run the entire House of Mouse empire.

However, Iger and Disney surprised just about everyone in February, when Iger announced he was stepping down immediately as CEO, and Bob Chapek – not Mayer – was named to run the Walt Disney Company.

About three months later, on May 18, Mayer announced that he was resigning from Disney to take the job of CEO of TikTok, the app for easily making and sharing short videos, as well as chief operating officer of the app’s parent company, ByteDance, a Beijing-based company.

It’s not unusual for a key executive passed over for the C-Suite to leave for another position. But Mayer had one of the best streaming jobs at the top entertainment company on the planet. And while TikTok had gained enormous popularity – though largely among teens – there were questions about the company. And those questions have only multiplied since Mayer became CEO at the app.

The combination of TikTok’s wild popularity and the fact that it is a Chinese company, with potential exposure to informational demands and controls by the Chinese communist government, makes for an uncertain future, to say the least. The U.S. federal government has national security concerns, and has unleashed attacks on TikTok, with President Trump threatening to shut it down in the U.S. The Indian government already has banned TikTok in that country. 

Clearly, TikTok was hoping that hiring Mayer, as an American CEO, would help, along with Mayer’s U.S.-China experience given the fact that Disney is deeply involved in China, with parks in Shanghai and Hong Kong. 

In fact, the ByteDance founder, Zhang Yiming, took certain structural precautions with his company hoping to avoid political woes. The New York Times reported:

He made TikTok unavailable in China so the video app’s users wouldn’t be subject to the Communist Party’s censorship requirements. He stored user data in Virginia and Singapore. He hired managers in the United States to run the app and lobbyists in Washington to fight for it on Capitol Hill. None of that counted for much in the end.

In the U.S., the politics have swung between Trump threatening to close the app down to the president being open to Microsoft buying the U.S. business of TikTok. And in a still more bizarre and unprecedented twist, President Trump wants the U.S. Treasury to receive “a lot of money” for “making it possible for this deal to happen.” 

According to The Wall Street Journal, Microsoft not only is interested in TikTok’s U.S. business, but talks also are covering the app’s business in Canada, Australia and New Zealand. September 15 stands as the target date, for now, to get a deal done. Microsoft apparently is enticed by the idea of expanding its business to young consumers, given the company’s success in recent years with corporate customers.

Whether a Microsoft deal gets done or not, either outcome presents further uncertainty for Mayer. If Microsoft purchases this chunk of TikTok, one would think that Mayer would go with the U.S. part of the business. And then one has to wonder if Microsoft would want to keep Mayer in the top spot at the U.S. version of TikTok. If so, he would suddenly be back running one part of a larger business. If the Microsoft deal doesn’t materialize and the app gets shutdown in the U.S., what value would Mayer then bring to TikTok?

So, many questions and unknowns loom for a guy who, just a few months ago, was one of the top players in online streaming. Indeed, Mayer has gone from the heights of playing a key role at one of the world’s top brands – Disney – to now slogging around in the muck of political controversy in the U.S., China and India. You have to wonder if Mayer is wondering.

In the end, Kevin Mayer might still emerge from this seeming mess sitting pretty – perhaps leading a Microsoft effort to compete with Facebook. But right now, it seems that leaving the leading streaming gig at Disney might not have been the best choice for Mr. Mayer.

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Also, get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.

Leadership Changes at the Walt Disney Company

by Ray Keating

News

DisneyBizJournal.com

May 18, 2020

May 18^th brought announcements of big changes in the leadership team at the Walt Disney Company.

First, Kevin Mayer is leaving his position as Chairman of Disney’s Direct-to-Consumer and International division to take the position of Chief Operating Officer of ByteDance and CEO of ByteDance’s TikTok mobile video platform. Mayer led the launches of ESPN+ and Disney+, as well as the integration of Hulu into Disney. For good measure, as Disney’s Chief Strategy Officer, he played a key role in various acquisitions, including 21st Century Fox. When Mayer lost out to Bob Chapek for the position of Disney CEO, there was much speculation as to whether he would stay with Disney to continue to head up Disney+, ESPN+ and Hulu, or, as is often the case in the corporate world when losing out on getting the top spot, leave the company for a position elsewhere.

Second, Mayer’s replacement is Rebecca Campbell. She comes from being the President of Disneyland Resort, i.e., running Disneyland, Disney California Adventure, three resort hotels and Downtown Disney.

Third, Josh D’Amaro has been named to Chapek’s old job as Chairman of the Disney Parks, Experiences and Products. D’Amaro, who comes from serving as President of the Walt Disney World Resort, will, as noted in the Disney press release, “oversee Disney’s iconic travel and leisure businesses, which include six theme park-resort destinations in the United States, Europe and Asia; a top-rated cruise line; a popular vacation ownership program; and an award-winning guided family adventure business. Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, digital games and apps; the world’s largest children’s print publisher; Disney store locations around the world; and the shopDisney e-commerce platform.”

After the CEO job, these are the two big positions at Disney. Campbell and D’Amaro are company veterans – Campbell having 23 years with Disney and D’Amaro 22 years.

Fourth, Jeff Vahle, formerly President of Disney Signature Experiences, will be taking D’Amaro’s former spot as President of Walt Disney World Resort. Vahle is a 30-year Disney veteran. 

Fifth, taking over Campbell’s spot as President of the Disneyland Resort is Ken Potrock, who has 25 years at the company, including as the Senior Vice President and General Manager of Disney Vacation Club.

Sixth, Kareem Daniel was named to head up Consumer Products, Games and Publishing as President. He formerly was President of Walt Disney Imagineering Business Operations, Product Creation, Publishing and Games.

And seventh, Thomas Mazloum, who was a Senior Vice President of Resort and Transportation Operations at Walt Disney World Resort, has been appointed President of the Disney Signature Experiences, which features Disney Cruise Line, Disney Vacation Club and Adventures by Disney.

In a statement, Chapek was quoted, “I’m incredibly proud of the new leadership team at Parks, beginning with the segment’s Chairman, longtime Disney veteran Josh D’Amaro, and his newly announced team of Jeff Vahle, Ken Potrock, Kareem Daniel and Thomas Mazloum. These talented executives played pivotal roles while leading our exceptional cast members during the largest period of growth in the segment’s history, which included the expansion of our parks and resorts around the world, the addition of new attractions including two highly acclaimed Star Wars-themed lands, and a shift to more personalized experiences for guests. And I am confident that as they assume even greater responsibility and pursue new opportunities, these proven leaders will have an even bigger impact on the future of our company.”

Regarding Rebecca Campbell, Mayer’s replacement, Chapek said, “As we look to grow our direct-to-consumer business and continue to expand into new markets, I can think of no one better suited to lead this effort than Rebecca. She is an exceptionally talented and dedicated leader with a wealth of experience in media, operations and international businesses.  She played a critical role in the launch of Disney+ globally while overseeing the EMEA region, and her strong business acumen and creative vision will be invaluable in taking our successful and well-established streaming services into the future.”

On May 18, Disney’s stock price increased by better than seven percent.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution (now available at a deep discount) and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.

Disney+ Races Past 50 Million Subscribers

by Ray Keating

News

DisneyBizJournal.com

April 8, 2020

When it launched the Disney+ streaming service in November, The Walt Disney Company served up expectations that it would reach 60 to 90 million subscribers by 2024. Well, it’s 2020, and it looks like that goal is going to be reached a heck of a lot sooner.

The Walt Disney Company announced on April 8 that Disney+ had surpassed 50 million paid subscribers globally.

In a statement, Kevin Mayer, chairman of Walt Disney Direct-to-Consumer & International, was quoted, “We’re truly humbled that Disney+ is resonating with millions around the globe, and believe this bodes well for our continued expansion throughout Western Europe and into Japan and all of Latin America later this year. Great storytelling inspires and uplifts, and we are in the fortunate position of being able to deliver a vast array of great entertainment rooted in joy and optimism on Disney+.”

Within the past two weeks, Disney+ came on line for consumers in the UK, Ireland, France, Germany, Italy, Spain, Austria, Switzerland, and India.

Even with the possible impact of the coronavirus, blowing past 50 million subscribers within five months of its launch is impressive, and it’s likely that Disney+ will hit the 60 million mark before the end of this year.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution (now available at a deep discount) and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Mayer Reportedly Staying at Disney

by Ray Keating

News

DisneyBizJournal.com

March 6, 2020

When Bob Chapek was named Disney CEO, we wondered about Kevin Mayer, who also had been mentioned for the job, especially given his gig as chairman of direct-to-consumer and international division, which includes Disney+.

We wrote: “One question to be answered relates to Kevin Mayer: Will he stay or leave in coming months given that Chapek got the CEO spot?”

A Los Angeles Times report today seems to provide an answer. The Times noted:

Disney insiders and people who know Mayer said it is unlikely he will depart, given the high-profile nature of his current job. For a media executive, there aren’t many positions in entertainment, media or tech that are more interesting than that of leading Disney’s charge into subscription video. And Mayer, 57, could be in a good position to eventually succeed Chapek.

Regarding Mayer’s role and relationship with Chapek, the Times highlighted to the following key points:

• “Some of the biggest hurdles for Disney fall to Mayer, who must work closely with Iger and Chapek to grow Disney+ by increasing programming and expanding globally. Mayer is also tasked with growing Hulu, which has been under Disney control since last year. Hulu is a key part of Disney’s streaming strategy, as the new home of programming from FX Networks. The service also must pursue its long-awaited international expansion.”

• “People close to Mayer and Chapek said the executives get along well. Both are longtime Disney insiders and exacting bosses who have touched multiple parts of Disney’s empire. The interconnected nature of Disney’s numerous businesses — theme parks, cruise ships, Broadway plays, movies and TV shows, toys and so on — requires division heads to collaborate more frequently than at more siloed rival companies.”

• “Mayer oversaw the blockbuster acquisitions that made Disney the dominant force it is today, including Pixar Animation Studios, Marvel Entertainment, Lucasfilm and 21st Century Fox Inc. One key deal was Disney’s takeover of technology company BAMTech, which provided the backbone of Disney’s streaming services. Less successful were the acquisitions of YouTube creator network Maker Studios and online game maker Club Penguin.”

It's clear that Mayer still very much matters to Disney, and as reported, the company wants him focused on streaming, which Iger has identified as key to the future of Disney. Disney investors should be pleased.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Disney Names Bob Chapek CEO Effective Immediately

by Ray Keating

News

DisneyBizJournal.com

February 25, 2020

The Walt Disney Company made a surprise announcement today that the Board of Directors named Bob Chapek Chief Executive Officer effective immediately.

In a statement, Disney reported that Bob Iger “assumes the role of Executive Chairman and will direct the Company’s creative endeavors, while leading the Board and providing the full benefit of his experience, leadership and guidance to ensure a smooth and successful transition through the end of his contract on Dec. 31, 2021.”

The timing wasn’t the only surprise, however, as many had assumed that Kevin Mayer, the chairman of direct-to-consumer and international division, would be named Iger’s successor given Mayer’s role with Disney+. Chapek was head of parks, experiences and products since 2015.

Regarding Chapek, Iger stated: “Bob will be the seventh CEO in Disney’s nearly 100-year history, and he has proven himself exceptionally qualified to lead the company into its next century. Throughout his career, Bob has led with integrity and conviction, always respecting Disney’s rich legacy while at the same time taking smart, innovative risks for the future. His success over the past 27 years reflects his visionary leadership and the strong business growth and stellar results he has consistently achieved in his roles at Parks, Consumer Products and the Studio. Under Bob’s leadership as CEO, our portfolio of great businesses and our amazing and talented people will continue to serve the company and its shareholders well for years to come.”

Chapek said: “I am incredibly honored and humbled to assume the role of CEO of what I truly believe is the greatest company in the world, and to lead our exceptionally talented and dedicated cast members and employees. Bob Iger has built Disney into the most admired and successful media and entertainment company, and I have been lucky to enjoy a front-row seat as a member of his leadership team. I share his commitment to creative excellence, technological innovation and international expansion, and I will continue to embrace these same strategic pillars going forward. Everything we have achieved thus far serves as a solid foundation for further creative storytelling, bold innovation and thoughtful risk-taking.”

Over the coming 22 months, the two men will be working together, allowing for a smooth transition period from one Bob to the next Bob. As Iger put it: “I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney’s multifaceted global businesses and operations, while I continue to focus on the company’s creative endeavors.”

Susan Arnold, independent Lead Director of the Disney Board, added, “Mr. Chapek will also benefit from the guidance of one of the world’s most esteemed and successful business leaders, Bob Iger.”

During a press call, Iger was asked: Why now? He said that the time was right for him to get everything aligned on the creative side of the business before he leaves at the end of 2021, while Chapek takes over the day-to-day management. It was apparent from Iger’s response that completing the Fox deal, and setting up ESPN+ and Disney+ were essential as to the timing on this move.

One question to be answered relates to Kevin Mayer: Will he stay or leave in coming months given that Chapek got the CEO spot?

While Chapek has long experience with the Disney company, he has big shoes to fill, following Bob Iger and previously, Michael Eisner, who rank as the two CEOs with the greatest impact on The Walt Disney Company – that is, after Walt Disney, of course.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Dear Bob: When Are You Leaving and Who Will Replace You?

by Ray Keating

Analysis/Commentary

DisneyBizJournal.com

August 28, 2019

Dear Bob,

Your tenure at the helm of Disney has been impressive. And I’m not just talking about the acquisitions of Pixar, Star Wars and Indiana Jones (i.e., LucasFilm), Marvel, and the Fox assets, but also the incredible investments being made in the Disney theme parks, and the bold move into streaming with Disney+, not to mention Hulu and ESPN+.

It’s just a fact that in terms of the history of the company, while each tenure was not without setbacks and poor choices, three names have made unmistakable, positive marks as Disney CEOs – Walt Disney, Michael Eisner, and you. 

Now, having said all of this, I’m not the only one wondering who is going to replace you at the end of 2021, when you’re supposed to retire.

First, I emphasize the “supposed to” because you’ve put off stepping down before – actually doing so four times. And I would argue that you should do so one more time. It would be fitting for you to still be at the helm in 2023, when the company marks its 100^thanniversary. Retire at the close of 2023, and hand over the reins to the next CEO at that time. Of course, there’s no reason that the next CEO cannot be named prior to that point – indeed, most investors obviously would expect that to happen as a signal of a smooth transition.

Second, whether you step down in 2021 or 2023, who is your replacement going to be? I know the board thinks it calls the shots on this, and technically, it does, but no doubt, your voice will carry weight. 

Talk swirling around two people grabs my attention. One is Kevin Mayer, the current chairman of direct-to-consumer and international division.  After all, much of the foreseeable future of the company rides on the success of Disney+. If Disney+ rocks it early on, then Mayer would be a natural next CEO.

The second is Bob Chapek, head of parks, experiences and products since 2015. Given the role and revenue raked in by the parks, and taking note of the investments and transformations going on just at Walt Disney World and Disneyland, Chapek has to be a serious contender.

Well, investors and fans await the decision. 

But again, I think it would be fitting for you and your successor to be standing together on October 16, 2023, celebrating the 100^thanniversary of the Walt Disney Company, and then either Mayer or Chapek kicking off his time as CEO at the close of that year.

Thanks for the consideration, and have a magical day!

Sincerely,

Ray Keating

DisneyBizJournal.com

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

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