Disney Will Spend $30 Million To Shut Down Mobile ESPN

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


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