Disney Warns ‘Restructuring, Change in Business Strategy’ May Hurt Financial Results; Admits a $900 million payment for the rest of BamTech

Disney said an upcoming restructuring under new/old CEO Bob Iger could lead to write-downs. It also noted that, as expected, it acquired the remaining 15% of streaming technology company BamTech that it did not already own for $900 million. The news was buried today in a lengthy year-end SEC filing after ten tumultuous days for the company.

“As envisaged in the announcement of leadership change, we expect Mr. More organizational and operational changes within the company over the coming months will lead to achieving the board’s objectives. While plans are still in the early stages, changes to our structure and operations, including within DMED (and potentially our distribution approach and the companies/distribution platforms selected for initial content distribution) can be anticipated in the 10K filing. “The restructuring and change in business strategy, once decided, could lead to impairments.”

Bamtech, now called Disney Streaming, was previously 85% owned by Disney and 15% owned by MLB. Disney had the right to buy back the rest until 2023 – five years after it acquired its original stake.

The lengthy filing, which summarizes last year’s financials — Disney’s fiscal year ends Sept. 30 — didn’t say much about the new regime beyond what was reported. The company’s board announced a week ago on Sunday that Chapek and Iger would be back immediately. Iger addressed Disney employees at a town hall yesterday.

“As previously announced, Robert A. Iger returned to the company as Chief Executive Officer (“CEO”) and a director on November 20, 2022. Mr. Iger previously worked for the company for more than four decades, including 15 years as CEO. In announcing Mr. Iger’s appointment, the company noted that he had agreed to serve as CEO for two years, with a mandate from the company’s board to “set the strategic direction for renewed growth and to work closely with the board to create a .” Successor.” will lead the company at the end of his tenure.” Mr. Iger succeeded Robert A. Chapek, who had been CEO since 2020.”

One of the first things Iger targets is DMED, the Disney Media and Entertainment Distribution division, a new group founded by Chapek and led by his protégé Kareem Daniel, who was also ousted. The distribution center that controlled the income statement and decision making for all departments frustrated many senior managers as well as notable members of the creative industry.