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Bored In The House? Top Disney Exec Departs To Take TikTok CEO Job

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Bored In The House? Top Disney Exec Departs To Take TikTok CEO Job

Was Walt Disney Co (NYSE: DIS) executive Kevin Mayer "bored in the house" and wanting to take on a new task?

That appears to be the case as Mayer has been named chief executive of TikTok and chief operating officer of its parent company Bytedance.

What To Know About Mayer

Mayer served as Disney's chairman of its direct-to-consumer and the international segment where he oversaw Disney+, Hulu and ESPN+. His departure from Disney to TikTok, the popular short video app, implies he's the highest-profiled American executive to take a position at a Chinese company, according to The Wall Street Journal.

Mayer said in a WSJ interview TikTok is "growing rapidly" and "serving a need." In his position, he will be focusing on adjacent businesses, such as gaming and music while video is "an interesting opportunity."

See Also: TikTok Has Taken Over: Here Are The Big Money Players Behind The Social Media App

Why It's Important For Disney

Mayer's departure from Disney comes at a questionable time. The Disney+ streaming service has proven its importance in keeping children and adults entertained during the COVID-19 pandemic.

It's not yet known if Mayer's decision to leave the company is due to him not being named as Disney's CEO. He was considered a top candidate to replace Bob Iger and many Disney insiders were surprised when Bob Chapek was confirmed as CEO instead of Mayer, according to WSJ.

What's Next For TikTok

Mayer will oversee one of the world's most valuable private companies at an estimated valuation of $75 billion. The social media giant with more than 700 million global daily active users isn't consistently profitable.

Mayer will likely be tasked with reversing this trend by monetizing a mostly teenage audience with minimal spending power.

 

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