Disney faces charges of up to $2.4 billion due to Star India's removal
.webp)
Walt Disney anticipates non-cash pre-tax impairment charges ranging from $1.8 billion to $2.4 billion for the quarter ending March 31 due to the write-down of net assets and goodwill at Star India following its removal from the company, according to a company filing to the United States Securities and Exchange Commission, submitted on Wednesday.
The impairment charges stem from the merger agreement between Walt Disney and Reliance Industries Ltd (RIL) aimed at creating an $8.5-billion media entity by combining Star India and Viacom18.
"In connection with the transaction, the company determined that Star India should be classified as held-for-sale. In the current quarter, the company expects to record non-cash pre-tax impairment charges estimated to be between $1.8 billion to $2.4 billion, approximately half of which reflect a write-down of the net assets of Star India in order to adjust them to fair value (less estimated transaction costs) pursuant to held-for-sale accounting and approximately half of which reflect a write-down of goodwill at the entertainment linear networks reporting unit, reflecting the impact of removing Star India," the Walt Disney filing stated.
The definitive binding agreement states that the two entities, RIL and Viacom18, owned by Bodhi Tree, will merge into Star India. The proposed merged entity will be majority-owned by RIL and Viacom18, holding a 63 per cent stake. Meanwhile, Disney will retain a 37 per cent ownership.
RIL also plans to inject $1.4 billion into the merged entity to bolster its future growth initiatives.
The filing also added that under the held-for-sale accounting framework, Walt Disney will "continue to adjust the net book value of Star India to fair value (less estimated transaction costs) until the closing date of the Transaction."
"Thus, the company may recognise incremental gains or losses each reporting period as a result of changes in the net book value and/or estimated fair value of Star India (e.g., due to operating results or foreign exchange rate changes, etc.) until the transaction has closed," the company added.
Other Latest News
.webp)
Shares of YES Bank climbed as much as 8.98 per cent to hit an intraday high of Rs 28.50 apiece on Monday, after the private lender announced a strong set of March quarter results (Q4FY24).
YES Bank’s profit jumped over 123 per cent to Rs 452 crore in Q4FY24, as opposed to Rs 202.43 crore reported in Q4FY23.
.webp)
The Congress on Monday attacked the BJP over the alleged sex scandal involving the grandson of JD(S) supremo H D Deve Gowda, with party leader Priyanka Gandhi Vadra asking whether Prime Minister Narendra Modi will remain silent on the matter.
The opposition party also asked why the BJP went ahead with its alliance with the JD(S) when a BJP leader had written to the party's Karnataka unit president, exposing the presence of a pen drive full of "sleaze videos of Prajwal Revanna".
.webp)
China is gearing up to launch a robotic spacecraft on a mission to bring back samples from the dark side of the moon. This mission is prelude to three challenging missions aimed at achieving a Chinese crewed landing and establishing a base on the lunar South pole. And it will also be the world's first attempt at collecting samples from the other side of the moon.
Since the inaugural Chang’s mission in 2007, named after the legendary Chinese moon goddess, China has made substantial strides in its lunar exploration efforts, narrowing the technological divide with the United States and Russia.
.webp)
The Japanese yen hit its weakest levels since April 1990 on Monday, in trading thinned by a holiday in Japan and attempts by traders to test key levels and stop-loss orders in a nervous, illiquid market.
The dollar rose as far as 160.245 yen in a sudden move after the yen traded in a narrow 158.05-158.15 range in early deals.
.webp)
Veteran politician, BJP MP and former Union Minister V Sreenivasa Prasad died on Monday, family sources said.
The 76-year-old Lok Sabha member from Chamarajnagar was ailing for some time and being treated at a private hospital, where he passed away early today.
.webp)
.webp)
.webp)
.webp)
.webp)
