Disney Expects To Write Down As Much As $190M For ‘Lone Ranger’
CFO Jay Rasulo just told analysts that the company is “disappointed” in the film’s performance and likely will take a charge of anywhere from $160M to $190M next quarter. The company isn’t ready to be more specific because the film is only open in 40% of its markets; it hits Japan in September. But CEO Bob Iger says he hasn’t lost faith in making expensive tentpole films, even though “there has been a lot said about the risk…and we certainly can attest to that given what happened to The Lone Ranger.” He says that overall Disney had “an excellent summer” especially with Iron Man 3, which should end up being Marvel’s top performing film after The Avengers. Tentpoles provide the company with a way to “rise above the din and competition.” He says it’s still important to make good films, not just big ones. “If there are more tentpole films being made, then there’s more risk in the marketplace. But we’ve known about that risk for quite some time.” And he’s confident in the ability of Disney, Marvel, Pixar and Lucasfilms to break through — on the screen, games, publishing and Disney’s theme parks. With its different studio brands, “there’s substantial potential not only to increase sales, but to increase royalties.”
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