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Summary:

This articles starts: “The Walt Disney Co. will spend about $30 million to shut down its Mobile ESPN wireless telephone services, but remain…

This articles starts: “The Walt Disney Co. will spend about $30 million to shut down its Mobile ESPN wireless telephone services, but remains “excited” about its family-oriented Disney Mobile phone service, Disney Chief Financial Officer Tom Staggs said on Monday.” The effect will be mainly in the fiscal year 2007. I’m unsure if the $30 million figure includes what the company invested to start the MVNO, whether it’s the total loss or just the termination payments… I’ll post more as it comes up.
Staci adds: Staggs was referring specifically to the shutdown costs for Mobile ESPN, which are distinct from the $150 million overall Disney MVNO investment. The costs include refunding the cost of handets, severance, etc. As James noted, most of that expense will come in fiscal 2007; the announcement came in the final days of FY06. Disney discloses earnings early next month; a write-off for some

  1. Kim Thompson Tuesday, March 6, 2007

    Disney mobile sucks. I purchased a Disney Mobile handeset for my son for Christmas with the rebate and a month free. My son has had the phone since Christmas and it is now March 6th. All has been well. Disney MObile advertised that parents can get alerts when their children reach the allowance that a parent sets for their monthly spending amount. I as a parent set up an allowance of 400 minutes which is his monthly alotted amount. They advertise that there alerts that are sent to you when they reach this amount. I received an email this passed Sunday stating that I could review my bill. To my surprise I opened up my bill and it was $277. SO MUCH FOR UNEXPECTED BILLS! I have made several phone calls to Disney Mobile and they keep telling me that the only time that parents get an alert is if parents themselves have a hand held phone. Well I dont have disney mobile phone and was not told anywhere in the paperwork or website that this is the case. If you look at the allowance area of the website, it tells you to set an allowance. I set it. THEY DO NOT SEND YOU ALERTS IF YOU DO NOT HAVE A HANDHELD! And they are not changing this. So I feel everyone should be aware. They advertise falsly with this sence of hope for parent!

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