Would Disney Ever Sell??

[Plutoboy1970]

A while back I was reading an article written by Kevin Yee ( can't stand the guy but sometimes he makes you think) about how Disney had an outside company due a study on contingency plans if the gas prices ever reached $160.00 a barrel. In the article, Kevin mentions that one of the plans given was for Disney to sell the parks and Disney would make royalties from the new owners.

All this is with the thought that if gas continues to get too high, airlines now charging a baggage fee and others factors that guests will stop traveling.

What do you all think?? Do you think Disney would ever sell the parks if it were to get to that point??

I only mention it because it's on a website again today where Kevin mentions his point again and how Dubailand comes into play.

 

[TestTrack]

A while back I was reading an article written by Kevin Yee ( can't stand the guy but sometimes he makes you think) about how Disney had an outside company due a study on contingency plans if the gas prices ever reached $160.00 a barrel. In the article, Kevin mentions that one of the plans given was for Disney to sell the parks and Disney would make royalties from the new owners.

All this is with the thought that if gas continues to get too high, airlines now charging a baggage fee and others factors that guests will stop traveling.

What do you all think?? Do you think Disney would ever sell the parks if it were to get to that point??

I only mention it because it's on a website again today where Kevin mentions his point again and how Dubailand comes into play.

If he really did try to make that claim...that's the dumbest idea I have ever heard. First of all...if gas reached $160 a barrel...we'd be at $5ish a gallon. $1 more is going to cause Disney to decide to sell their theme park division? I don't think so.

Look beyond Mr. Yee's short sighted view of the world. The increasing price of oil is an economic force which will drive innovation. Alternative fuel research will increase, fuel economy will as well, less people will drive when they don't have to, cars will get smaller and lighter.

Do you really think Disney is having many problems with the higher gas price when rooms are still booking up months in advance? All one needs to do is look on the trip planning forum to see people having difficulties getting a room a few months out.

 

[wedway71]

I read that article too.

I think Kevin tends to be negative in my opinion. Apparently,he has worked for Disneyland 3 times and finally moved to Orlando.

He will be quick to say he loves Disney but if you ever read any of his articles when he does say something positive it is preceeded with words like"Surprisingly good".

As far as the article goes if you read it says some company said they should not that Disney thinks so.

Could it happen??? Yes
Do I think it would??? No

Disney parks are very strong and make a lot of money for Disney.
After seeing how another company would fail to run a Disney operation such as Childrens Place...I dont see Disney making that same mistake with its parks.

 

[BrennaRN]

I didn't read the article, but the whole thing sounds ridiculous. We decided to fly this year instead of driving due to costs. Even with the baggage charges, etc. The cost was still considerably less than driving. I think people will make other arrangements in order to get to Disney.

 

[Philo]

That sounds pretty ridiculous. I know lots of people have many complaints about Disney but I doubt there is a single person that wants to see the parks sold. If I knew that they were being run and operated by another company I would loose all faith and probably only visit out of interest to see the changes.

Perhaps a negative view but Disney have manged to make a place we all love and there are very few other companies in the world that can do that.

 

[bgraham34]

That sounds pretty ridiculous. I know lots of people have many complaints about Disney but I doubt there is a single person that wants to see the parks sold. If I knew that they were being run and operated by another company I would loose all faith and probably only visit out of interest to see the changes.

Perhaps a negative view but Disney have manged to make a place we all love and there are very few other companies in the world that can do that.

Exactly.

 

[MousDad]

I may be wrong on this, but I did not gather from that article that Disney said it would do this, but rather that the company who did the study recommended that Disney do it.

 

[EPCOT Explorer]

Perish the thought!

 

[krankenstein]

Another erroneous claim by miceage!

 

[KaliSplash]

Many companies are spinning off subsidiaries to focus on "their core business."

I'm thinking it's much more likely Disney would spin off ABC or ESPN than the parks. Next to the studios themselves, Disney's parks are core business.

BTW, I'm not expecting Disney to sell ABC or ESPN anytime soon.

 

[EPCOT Explorer]

Only them...Only them,

 

[fosse76]

I may be wrong on this, but I did not gather from that article that Disney said it would do this, but rather that the company who did the study recommended that Disney do it.

I've read it that way as well. This leads me to believe that the parks aren't as profitable as we think they are for the company (not that they aren't, but with the services they offer and the upgrades and development they constantly perform, I wouldn't be surprised if they were only making a small profit comparatively to the rest of the company).

 

[lebeau]

I read the article. It was basically saying that Disney was advised to sell as oil reached that price. The rationale was that people would stop flying. Kevin cited a book that painted a very bleak picture of America's future in which we essentially revert back to an agrarian society. In this scenerio, people can no longer afford to fly. Cars are no longer a common means of transportation. It was the end of the world as we know (and Disney isn't feeling fine). Anyway, if all that happened, sure I could see Disney selling the parks. But I hardly see that as the inevitable outcome of rising gas prices.

 

[wedway71]

Disney Theme Parks are profitable..... no wait......Very Profitbale.

TWDC has beaten Wall Street expectations due to Movies and Television and of course Theme Parks.

As someone else said, Disney Parks are in fact of of TWDC core business now.

If it got to be where it would be advised for Disney to sell its huge power house division then I think I will be worrying more about how I can survive and put food in my kids mouths than Disney.

 

[raven]

What do you all think?? Do you think Disney would ever sell the parks if it were to get to that point??

A few years ago when Eisner was in the office, yes. Remember the Comcast debacle?

Nowadays, no.

 

[wedway71]

A few years ago when Eisner was in the office, yes. Remember the Comcast debacle?

Nowadays, no.

Yes I remember that too.With the exception of 1984 that was probably one of the darkest hours for Disney.Even with that, they didnt sell.

The company is positioned really well with Iger and owning Pixar and its very strong growth.

Disney has beaten not only Competition but also the S&P 500 too.

Again Kevin finds the most outlandish scenerio and spins it as truth.