Statement From The Walt Disney Company in Response to the Ongoing Crisis in Ukraine

Rhea-AI Summary

The Walt Disney Company has announced a pause in its theatrical film releases and other business activities in Russia due to the ongoing crisis in Ukraine. This includes halting content and product licensing, Disney Cruise Line operations, and National Geographic tours. While some activities can be immediately ceased, others will take time due to existing contractual obligations. Disney remains committed to its Russian employees and is working with NGOs to provide aid to affected refugees. The company emphasizes that these decisions are influenced by management's views on geopolitical conditions.

Positive

• Commitment to Russian employees to maintain jobs.
• Collaboration with NGOs to provide urgent aid and assistance to refugees.

Negative

• Pausing all business activities in Russia could lead to revenue loss.
• Contractual complexities may delay the cessation of some operations.

BURBANK, Calif.--(BUSINESS WIRE)-- The following statement may be attributed to a spokesperson for The Walt Disney Company:

“Last week, after Russia’s unprovoked invasion of Ukraine, we announced that we were pausing the release of theatrical films in Russia and reviewing the rest of our businesses there.

Given the unrelenting assault on Ukraine and the escalating humanitarian crisis, we are taking steps to pause all other businesses in Russia. This includes content and product licensing, Disney Cruise Line activities, National Geographic magazine and tours, local content productions and linear channels.

Some of those business activities we can and will pause immediately. Others—such as linear channels and some content and product licensing—will take time given contractual complexities.

Even as we pause these businesses, we remain committed to our dedicated colleagues in Russia, who will remain employed. And we continue to work with our NGO partners to provide urgent aid and other much-needed assistance to refugees.”

Forward-Looking Statements

Certain statements in this communication may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business plans and other statements that are not historical in nature. These statements are made on the basis of management’s views and assumptions regarding future events as of the time the statements are made. Management does not undertake any obligation to update these statements.

Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including business decisions, as well as from developments beyond the Company’s control, including changes in geopolitical conditions or regulatory requirements, each of which may impact the Company’s business plans.

Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended October 2, 2021 and subsequent filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220310005900/en/

David Jefferson

(818) 560-4832

david.j.jefferson@disney.com

Karen Hobson

(818) 560-4057

karen.hobson@disney.com

Source: The Walt Disney Company

FAQ

Why is Disney pausing business in Russia?

Disney is pausing business in Russia in response to the ongoing humanitarian crisis following the invasion of Ukraine.

What specific businesses is Disney pausing in Russia?

Disney is pausing theatrical film releases, content and product licensing, Disney Cruise Line activities, and National Geographic tours in Russia.

How does the pause affect Disney's employees in Russia?

Disney has stated that its employees in Russia will remain employed despite the business pause.

What impact could the pause have on Disney's financials?

The pause in Russian operations may lead to potential revenue loss for Disney.

Is Disney providing support to those affected by the crisis in Ukraine?

Yes, Disney is working with NGO partners to provide urgent aid and assistance to Ukrainian refugees.