The Walt Disney Co.
DIS,
said it expects its newly reappointed CEO Robert Iger to implement organizational and operating changes to address the board’s goal of boosting profitability, and that the moves could result in impairment charges. In the company’s annual 10-K filing with the Securities and Exchange Commission, the company said the plans are still in the early stages, but “changes in our structure and operations, including within DMED (Disney Media and Entertainment Distribution) (and including possibly our distribution approach and the businesses/distribution platforms selected for the initial distribution of content), can be expected. The restructuring and change in business strategy, once determined, could result in impairment charges,” said the filing. Disney shocked investors on Nov. 2 when it announced that Iger was returning as CEO, replacing Bob Chapek, who had been CEO since 2020. Iger told employees at a Town Hall this week that he would give priority to creativity and that he will chase profitability over growing subscriber numbers at Disney’s streaming services. Iger, who was Disney’s CEO from 2005 to 2020, was met with applause when he was introduced at the Monday town hall and he responded by saying he thought he might cry. Disney shares were up 0.5% in premarket trade Wednesday, but are down 39% in the year to date, while the S&P 500
SPX,
has fallen 17%.
