Disney reportedly scraps its metaverse division

Bob Chapek

The metaverse division was originally put together to work on new ways to engage Disney’s audience.

Entertainment giant Disney has reportedly ditched its metaverse division as part of a broader restructuring plan that will see the firm cut its operating expenses by $5.5 billion and lay off 7,000 staff over two months.

The news was reported by the Wall Street Journal (WSJ) in a March 28 post, citing "people familiar with the matter."

All of the metaverse division’s 50 or so members will be left without a new employment contract, with the exception of Michael White, who led the broader consumer-products unit, the WSJ reported.

Disney has abandoned a plan to develop its own membership program like Amazon Prime, according to @RWhelanWSJ.

Disney has also eliminated the division that was developing metaverse strategies, according to the report. https://t.co/mSm92XtqE0 pic.twitter.com/e2KqbxAC8i
— Scott Gustin (@ScottGustin) March 28, 2023

The metaverse division is understood to have been created in February 2022 in an effort to create new ways by which Disney audiences can engage with its stories.

Disney also patented a “virtual-world simulator” which aimed to facilitate headset-free augmented reality (AR) attractions at Disney theme parks on Dec. 28, 2021.

The firm also once considered how it could integrate metaverse technology into sports betting. However, nothing serious progressed there.

The decision to cut operating expenses and staff count came following a consultation with McKinsey & Co to find cost-cutting opportunities, according to the report.

Unfavorable economic conditions and increased competition in the streaming sector were two of the main factors that led to the decision.

Both Disney’s former and current chief executives, Bob Chapek and Robert Iger once considered the Metaverse to be a very bullish investment opportunity.

Chapek has reportedly described the Metaverse to be “the next great storytelling frontier,” while Iger previously worked as a director and adviser in Genies, a digital avatar platform running on Dapper Labs’ Flow blockchain.

Cointelegraph reached out to Disney for comment but did not receive an immediate response.

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approval

The ruling allows the crypto lender a path out of its bankruptcy, but it still has to undertake some due diligence with Binance US before the sale is final.

Bankrupt cryptocurrency lender Voyager Digital has won court approval to sell over $1 billion of its assets to Binance US.

The approval was granted by United States Bankruptcy Judge Michael Wiles on Mar. 7, which came after four days of arguments presented by Voyager and the U.S. Securities Exchange Commission (SEC).

Wiles said he would give the trading platform permission to close the Binance US sale and issue repayment tokens to impacted Voyager customers, which would give them back approximately 73% of what they're owed.

Wiles rejected a series of arguments by the SEC that the redistribution of the funds from Voyager to Binance.US would violate U.S. securities laws, according to a Mar. 7 report from Bloomberg:

“I cannot put the entire case into indeterminate deep freeze while regulators figure out whether they believe there are problems with the transaction and plan."

Peter M. Aronoff, a lawyer with the Department of Justice (DOJ) said it's considering appealing Wiles' decision.

The judge's decision comes just over a week after 97% of 61,300 Voyager account holders were found to be in favor of the current Binance.US restructuring plan, according to a Feb. 28 filing.

This is a developing story, and further information will be added as it becomes available.

restructuring plan