Disney Reports $1.5 Billion Write-Off Charge for Removing Shows From Disney Plus and Hulu
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The Walt Disney Co. said in an SEC filing last week that it will incur a $1.5 billion impairment charge in its ongoing fiscal third quarter following the removal of shows and movies from Disney Plus and Hulu.
Looking to reduce taxes and other charges, Disney pulled more than 50 titles from Disney Plus and Hulu, including recent series The World According to Jeff Goldblum, Y: The Last Man, The Mysterious Benedict Society, Dollface, The Mighty Ducks, Turner & Hooch, Willow, Maggie, Dollface and Cheaper by the Dozen.
Disney also said in its filing that it expects to write down another $400 million as more content gets removed.
It wasn't a surprise. During Disney’s fiscal Q2 earnings call last month, chief financial officer Christine McCarthy told investors an impairment charge of between $1.5 billion-$1.8 billion was coming.
Disney trimmed EBITDA losses on streaming to $659 during its fiscal second quarter vs. $1.1 billion the previous quarter.
