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Disney Construction Stopped???

Discussion in 'WDW Parks News, Rumors and Current Events' started by thebig2, Aug 6, 2002.

  1. thebig2

    thebig2 New Member

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    I heard from a respectable person that on the news today they said Disney was stopping all construction at the parks and were under investigation for hiding accounting losses (Sound familiar). The person I heard this from is a Disney freak. I have not been able to find anything on CNN, FOX, ABC (Obviously), or any other news outlet. Just wondering if anyone else had heard. The last thing I heard was that Disney had found they made more money due to an accounting error not less. I was wondering if anyone else had any news on this or had heard this or is the person I heard this from mistaken. Very disturbing but not surprising if this is in fact true
  2. thebig2

    thebig2 New Member

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    By the way not sure which news outlet it was originally shown on as well.
  3. ISTCNavigator57

    ISTCNavigator57 Well-Known Member

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    this would be ALL OVER the news were it true. Disney is a Dow company--this would be very big news. I'd take it with a grain of salt--but I'll be at Disney tomorrow to see if construction is still go.
  4. TURKEY

    TURKEY New Member

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    I check several news and business sites and haven't seen anything on it. I think if it were true, it would be showing up somewhere.
  5. thebig2

    thebig2 New Member

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    I thought i was alone in my love for turkey legs
  6. DanStat

    DanStat Well-Known Member

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    I actually heard from CNN that Disney actually understated their accounting stuff, and were going to restate it.
  7. thebig2

    thebig2 New Member

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    yeah thats what i was getting at near the end of the post that they made a good accounting error and they made $200 million more than originaly estimated. It doesnt make sene to me but thats what i heard. This is how rumours start eh?
  8. DisneyInsider

    DisneyInsider Premium Member

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    This is not true!

    Everyone would have heard it by now since Disney is such a major company. So whatever you heard is not really happening.
  9. garyhoov

    garyhoov Trophy Husband

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    I did hear today that Disney's bond rating was reduced. That would reduce their ability to borrow money for building. Could that be the cause of the rumor?
  10. DisneyInsider

    DisneyInsider Premium Member

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    The thing about Disney and the stock market is the category it will be in for investment. Since the price has lowered substantially recently they are placing it from a quick trade category to a long term investment category.

    I haven't heard a bond thing though, so maybe I need to check more info.
  11. jmarc63

    jmarc63 New Member

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    heres an article from Moody's Investment Services
    The original article is at
    http://www.moodys.com/cust/loadHighLight.asp?documentID=1501600000003433&original=1

    WALT DISNEY’S A3 on review for downgrade; Theme Park, debt concerns growing

    PRESS RELEASE

    Approximately $15 billion of debt securities affected

    New York, August 05, 2002 -- Moody's Investors Service has placed the A3 long term rating of The Walt Disney Company on review for possible downgrade. The company's P-2 short term rating remains stable. In addition, the A2 ratings for its subsidiaries, Disney Enterprises and ABC, Inc. are being placed on review as well.

    The review is prompted by Moody's ongoing concerns about the outlook for the company's theme park operations, uncertainty about viewer and advertiser share momentum at its ABC networks, and the company's high debt burden versus operating and free cash flow for the A3 rating category. Moody's believes that the external environment, which includes waning consumer confidence and ongoing geopolitical uncertainty, will continue to challenge the company's ability to return to credit metrics appropriate for the current rating category.

    As a result of weakening market conditions, Disney has been slower to de-lever than originally expected following the Fox Family acquisition, completed earlier in fiscal 2002, despite management's efforts to reduce costs and net debt. In addition, Moody's remains concerned that given ABC's lagging audience share it may experience greater negative volatility should a "double dip" advertising recession take hold.

    The review will focus on the following items: First, Disney's ability to improve its balance sheet over the next fiscal year. Second, the company's ability to rebuild audience and advertiser share at its flagship network. Third, developing comfort around the theme park's intermediate term operating and free cash flow contribution. Fourth, assessing future transaction risk.

    The Walt Disney Company, headquartered in Burbank, California, is a diversified international media and entertainment company.
  12. MajinBuu

    MajinBuu New Member

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    NOT TRUE!!

    at least the construction part...

    Look at the progress on Mission: Space...
  13. WDWFREAK53

    WDWFREAK53 Well-Known Member

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    ALERT ALERT!!!!

    EVERYBODY OFF OF THE FORUMS!!!

    WE ARE ALL IN GREAT DANGER!!!

    We are all going to DIE! Our sodium levels are going to SKYROCKET from the amount of things that we need to take with a "grain of salt!" :slurp: :lol:
  14. indigo

    indigo Member

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    Disney is a very cash rich company. They have in reserve the cash to build five $1billion dollar themeparks right now if they wanted to. A small dip in their bond rating won't really hurt matters.
  15. admats130

    admats130 New Member

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    I recall reading that Disney had accounting errors. However, undereporting profit is apparantly not fraudulent, unlike overreporting profit like WorldCom. It was apparantlly written off as bad accounting, since it didn't cuase their stock to be overvalued ala WorldCom.
  16. Pumbas Nakasak

    Pumbas Nakasak Feast upon my magnificence Premium Member

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    The phrase " return to credit matrix" what does that actually mean, well ill admit ive done no economics since i left school many years ago but i think what their saying id Disney Parks are making money but not as much in as short a time as we money men would like.

    If you think about it stock brokers are just like people that gamble at the track but are lucky enough to use someone elses money and then get paid big wedge for not screwing up:rolleyes:
  17. bvolguards

    bvolguards New Member

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    exactly:)

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