Disney warns restructuring could result in impairment charges

[November 30, 2022]  (Reuters) -Walt Disney Co on Tuesday said it anticipates organizational and operational changes in the company that could result in impairment charges, according to a regulatory filing.   

The entrance to Walt Disney studios is seen in Burbank, California, U.S. August 6, 2018. REUTERS/Lucy Nicholson

The changes follow Bob Iger's return as Disney's chief executive officer.

Disney said Iger's mandate is to put the company on the path for renewed growth. As he sets a strategic direction for the company, Disney said it anticipates changes in the coming months.

On the first day on the job, Iger announced plans to restructure the Disney Media and Entertainment Division, a unit his predecessor created in October 2020 to centralize the distribution of content.

The restructuring and change in business strategy, once determined, could result in impairment charges, the company said in its filing.

Read more:

'Boomerang CEOs' don't always work out; Disney hopes this one bucks trend

Disney brings back Bob Iger as CEO in surprise move to boost growth

Disney CEO Iger makes profitable streaming a priority

(Reporting by Dawn Chmielewski in Los Angeles; Editing by Mark Porter and Lisa Shumaker)

[© 2022 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.