Bob Iger's Restructuring Plan Will Accrue Impairment Charges, Disney Cautions

  • Walt Disney Co (NYSE: DIS) expected organizational and operational changes to lead to impairment charges.

  • Robert A. Iger returned to Disney as CEO and director.

  • Iger succeeded Robert A. Chapek, who had served as CEO since 2020.

  • Iger spent over four decades at the Company, including 15 years as CEO.

  • As contemplated by the leadership change, Disney expects Iger to initiate organizational and operating changes within the Company to address the Board’s goals.

  • While the plans are in the early stages, changes in its structure and operations, including within DMED (and possibly its distribution approach and the businesses and distribution platforms selected for the initial content distribution), are pretty likely.

  • Once determined, restructuring and change in business strategy could result in impairment charges.

  • Iger said he would focus on achieving profitability in streaming and take a “hard look” at costs during his first company-wide meeting since returning to the group’s top job.

  • “Instead of chasing subscriptions with aggressive marketing and aggressive spending on content, we have to start chasing profitability,” Iger said.

  • Price Action: DIS shares are up by 0.33% at $95 premarket on the last check Wednesday.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga does not provide investment advice. All rights reserved.