Layoffs Coming for Disney

Disney's (NYSE: DIS  ) gaming segment, Disney Interactive, has struggled to find an identity in the larger company, and has downsized repeatedly in recent years, seeking consistent profitability. Now, the company is planning to eliminate at least 200 additional jobs from this division in the coming weeks. Disney said on Wednesday that Disney Interactive would report a second-quarter operating loss.

In this segment from Thursday's Consumer Countdown, Motley Fool consumer goods analysts Mark Reeth and Mike Finarelli discuss the overall performance of Disney Interactive, and how it fits into Disney as a whole. This segment has been showing results that are substantially better than they have been previously, with a big contributor to its increased revenue being the recent success of Disney Infinity. Infinity brings interaction between toys and video games, and competes directly with Activision's (NASDAQ: ATVI  ) Skylanders Swap Force. So far sales have been very successful, with Infinity sales nearly keeping pace with Skylanders, despite the latter having a significant head start.

Mark and Mike also discuss that while revenue from Disney Interactive is only a drop in the bucket for the company as a whole, success here may impact the company in other meaningful ways.

How will Disney profit when television changes forever?
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2829350, ~/Articles/ArticleHandler.aspx, 10/30/2014 12:51:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,134.14 159.83 0.94%
S&P 500 1,989.21 6.91 0.35%
NASD 4,552.78 3.55 0.08%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/30/2014 12:35 PM
ATVI $19.43 Up +0.39 +2.05%
Activision Blizzar… CAPS Rating: *****
DIS $89.99 Up +0.46 +0.51%
Walt Disney CAPS Rating: *****

Advertisement