On a day of overall retreat for the major Wall Street stock indices, Disney shares ended the session down about 2.4%, closing at $99.69.
With crisis in Italy and uncertainty in China conspiring to drag down all stocks throughout the day, it was hard to quantify the Roseanne factor, and shares already had opened lower hours before ABC officially pulled the plug on the show. In an effort to reassure investors, Disney chief Bob Iger tweeted and later told CNBC that there was no other recourse for the company but what it did. “There was no debate” internally, the exec told CNBC’s David Faber off the air, Faber reported.
The disappointing opening of Solo: A Star Wars Story, which undershot estimates significantly over the weekend, also created a post-holiday hangover for shares. One comfort for Disney execs and shareholders is the fact that major media companies are much less vulnerable to the performance of individual shows or movies than they used to be.
The Dow 30 fell 391.64 points for the day, and the Nasdaq and S&P also finished in red figures.
One of the day’s other major media events — the ongoing legal battle between holding company National Amusements and CBS, which it controls — seemed to hold back Viacom shares. The company’s stock fell a bit more than 2% to $26.87 as investors processed NAI’s latest salvo in Delaware court, which seemed to drive a stake through any remaining hope of a reunion with CBS.
Shares of CBS also swooned more than 1% to $50.27.