Entertainment company, The Walt Disney Company (DIS) reported on Wednesday that it now plans to shut down LucasArts to help cut costs.
The company will shut down operations for its video game publisher, LucasArts, and will terminate all projects within the division including Star Wars: First Assault and Star Wars 1313.
Disney acquired the video game business last year for $4 billion from George Lucas. DIS will now focus on using the licencing model for its game division.
A total of 150 employees have already been laid off from the decision. It is unknown how many more of the division’s 1,800 total employees will be laid off.
Disney shares were mostly flat during premarket trading Thursday. The stock has increased 31% in the past year.
The Bottom Line
Shares of The Walt Disney Company (DIS) have a 1.31% yield, based on Wednesday’s closing price of $57.25.
The Walt Disney Company (DIS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.