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Walt Disney (DIS), the world’s largest entertainment company, fell to a 3-1/2 year low today as the company struggles to overcome numerous headwinds. Disney is facing (1) losses in its online video businesses, (2) the negative impact of the Hollywood actors and writers strikes, and (3) a fee dispute with Charter Communications, the second-largest U.S. cable company, that has cut off 14.7 million TV viewers from ESPN.
Disney CEO Iger, who returned as CEO for a second time last November after running the company for 15 years through February 2020, has launched a cost-cutting drive that included reduced spending and laying off 7,000 employees in an attempt to turn the company around. However, the stock has yet to recover due to a drop in subscribers to its Disney+ streaming service and the impact of the Hollywood strikes that have limited the release of new content.
