Disney investors have called out Disney stock buybacks, calling them “disaster” and “a complete failure.”
Disney’s stock buy-back program in 2019 and 2020, when the company acquired movie studio Pixar, resulted in more than $2 billion in cash for shareholders.
However, the results have been mixed, with investors looking at Disney’s $5.4 billion in debt.
The company has already missed a debt payment on $2.4 trillion.
In its latest quarterly earnings report, Disney reported that it lost $11.5 billion, or 13%, in the quarter ended May 31, 2018, from a $9.3 billion loss in the same period a year earlier.
Disney reported a net loss of $965 million for the year, which was the company’s worst quarterly performance in six years.
However that does not mean that the company is doing well.
The Walt Disney Co. reported a $15.9 billion loss for the fourth quarter of 2018.
In the year before the stock buy backs, Disney earned $6.9 bn, according to the company.
The stock is currently down 7.3% since it hit $80 in March 2019.
Disney’s CEO Bob Iger is facing increasing criticism for his company’s fiscal 2018, which has been characterized as a “bailout” that helped the company avoid a debt default in 2019.
During that year, Disney also missed a $4.7 billion debt payment.
However during Disney’s second fiscal year in 2021, the company had to write off a $2-billion investment in the development of Star Wars: The Force Awakens, according a New York Times report.
“I’m not going to take a bailout from anybody.
I’m going to fight for Disney,” Iger said at the time.
Iger has said he has “zero interest” in seeing his company take more debt, according the New York Post.
Disney will not need to sell off any of its stock to repay its debt, as it has already sold off some of its assets, including its Disneyland Resort, the majority of its Lucasfilm Studios, and the majority stake in its Star Wars franchise.
The financial results are not expected to be released until after Disney’s IPO, which will take place on April 14.
The SEC filed the paperwork on May 2, 2018.