Disney CEO replacement says restructuring could affect financial results

Disney has seen another major change in leadership this month, with CEO Bob Chapek resigning and former CEO Bob Iger returning. The company recently said that the restructuring under the leadership of the returning Bob Iger may result in impairment charges. At the same time, Disney also pointed out that, as expected, the company acquired the remaining 15% stake in streaming technology company BamTech for $900 million.

The company's year-end filing reads: "As anticipated in the leadership change announcement, we expect that in the coming months, Mr. Iger will initiate organizational and operational changes within the company to achieve the Board's objectives. While planning is in the early stages, changes to our structure and operations, including within DMED (which may include our distribution approach and the business/distribution platform selected for the initial distribution of content), are anticipated. Restructuring and changes in business strategy, once determined, may result in impairment charges."

Bamtech, now called Disney Streaming, was previously owned 85% by Disney and 15% by MLB. Disney has the option to buy the rest by a 2023 deadline.

The document reviews Disney's finances for the fiscal year that ended Sept. 30. There is little else to the report.

One of Iger’s first restructuring targets now is Disney’s media and entertainment distribution division, DMED, a new group created by Chapek and run by Kareem Daniel, a protégé he also ousted. The distribution center, which controls P&Ls and decision-making for all divisions, has irked many senior executives and prominent members of the creative community.