[RUMOUR] WDC Considers Buyout of Disneyland Paris

[|Q|]

http://business.time.com/2012/08/24...siders-buyout-of-struggling-disneyland-paris/
(posted by user britincgn on MagicForum)

What do you think?

Q

 

[Ham]

Hasn't done the share price any harm, up 22% today

http://www.bbc.co.uk/news/business/market_data/shares/1/92022/one_month.stm

 

[WDW1974]

Sad, that the thread (hell, the entire DLP forum) doesn't get more traffic.


It's ... sorta old news. Months ago, I mentioned that Euro Disney SCA had defaulted on its debt payments and that the creditors were going to seek full repayment (about $500 million euros) this fall at one time and that they didn't have the money to pay that bill!

If they did so, I said three things could happen:

1.) The company could be forced to close the resort, which wouldn't have happened as the government could have taken control of the operation;

2.) Disney could have found a buyer or investor to help provide the needed capital; or

3.) Disney could put more of its own money into the resort (such as buying it out);

The Time piece was a little weak on real info and details ... it read more like something planted by Burbank. They're clearly floating the idea and looking to see what the Street thinks.

 

[jt04]

I don't represent the street by any means but I could see TWDC taking control. Seems to me a new business model is necessary to meet guest expectations. It needs to be more affordable and the draw should be the resort and Paris for Americans. Not just one or the other. Affordibility will draw more "locals" too. It needs a bit of walmarting to succeed. Otherwise I fear it will continue to struggle.

Just my two francs.

 

[Californian Elitist]

I certainly hope the resort doesn't close, although it doesn't seem like that's going to happen. Hopefully these debt problems can be fixed soon.

 

[Le Clermontois]

If the rumor is confirmed this is good news for the financial health of the company.

And projects like Toy Story Mania or Marvel Land, Star Wars Land, Splash Mountain, the Little Mermaid, Indiana Jones Adventure, Tarzan Coaster and a third park will, may be, realized..

 

[GoofGoof]

Sad, that the thread (hell, the entire DLP forum) doesn't get more traffic.


It's ... sorta old news. Months ago, I mentioned that Euro Disney SCA had defaulted on its debt payments and that the creditors were going to seek full repayment (about $500 million euros) this fall at one time and that they didn't have the money to pay that bill!

If they did so, I said three things could happen:

1.) The company could be forced to close the resort, which wouldn't have happened as the government could have taken control of the operation;

2.) Disney could have found a buyer or investor to help provide the needed capital; or

3.) Disney could put more of its own money into the resort (such as buying it out);

The Time piece was a little weak on real info and details ... it read more like something planted by Burbank. They're clearly floating the idea and looking to see what the Street thinks.

This makes a lot more sense now. You are right that the article was kinda lacking. It's amazing how sometimes the mainstream media only gets half the story or sometimes the whole story is completely wrong.

 

[|Q|]

Sad, that the thread (hell, the entire DLP forum) doesn't get more traffic.

Still waiting for your trip report...

It's ... sorta old news. Months ago, I mentioned that Euro Disney SCA had defaulted on its debt payments and that the creditors were going to seek full repayment (about $500 million euros) this fall at one time and that they didn't have the money to pay that bill!

You mean, since the last quarters have all been in red? I remember you talking about this, but really, you're the only one i've ever seen touching this topic.

The Time piece was a little weak on real info and details ... it read more like something planted by Burbank. They're clearly floating the idea and looking to see what the Street thinks.

Like to check out how the DIS title reacts to a possible buyout?

Q

 

[RonAnnArbor]

Just to clarify -- DLP is in no way "struggling" with visitors and day to day income -- it is now the Number One tourist destination in Europe and it is packed every single day of the year....
The problems are the larger debts incurred over the many years in refinancing and refinancing the original payments for the parks...it doesn't have to do with day to day running of the parks.
That being said -- it would be in Disney's best interest to pump money into their own parks....but we all know that finance doesn't necessarily work that way.
Look at the original owner and founder of Best Buy now struggling to try to buy back his OWN company to keep it from going under.