News TWDC Organizational Shakeup - Parks combined with Consumer Products

[SourcererMark79]

Example Bain Capital (Mitt Romney's company) is forcing Toys'R US out of business. Because they feel auctioning off the companies assets would be better for investors than fixing the company.

RIP Geoffrey

 

[SourcererMark79]

But that’s where you’re not as good as Chapek.
Because Bob will also cut your labor significantly.

Oh true, and charge everyone for parking

 

[ford91exploder]

Well TRU was losing money hand over fist. WDW is making money hand over fist. So is the rest of TWDC.

But the REASON TRU was losing money was the 'Private Equity Shuffle', Equity firm buys underperforming firm, fixes the underlying issues and then loads up the company with debt and IPO's it for a discount however the debt load guarantees that the company will fail sooner than later.

 

[ford91exploder]

Romney hasn’t been a part of Bain for nearly 20 years.


RIP KB

That's true but Romney founded it and gave Bain it's corporate DNA which has destroyed many companies.

 

[EricsBiscuit]

But the REASON TRU was losing money was the 'Private Equity Shuffle', Equity firm buys underperforming firm, fixes the underlying issues and then loads up the company with debt and IPO's it for a discount however the debt load guarantees that the company will fail sooner than later.

TWDC is too large to be taken over by private equity.

 

[montyz81]

I think it now makes sense for us to all speculate on what, if anything, would Walt have done differently? I think it may be ignorant to think he would not make the same decisions given the current climate we live in. But, then again, he wasn’t just focused on profits, good show was just important to him. Discuss!

 

[larryz]

The guy is killing it...

When it comes to that ephemeral commodity known as "good will," yes, you're absolutely right.

 

[larryz]

TWDC is too large to be taken over by private equity.

But each of the many parts could easily be auctioned off... maybe that's why they're putting consumer products and the parks in one basket.

 

[mikejs78]

But each of the many parts could easily be auctioned off... maybe that's why they're putting consumer products and the parks in one basket.

They won't sell P&R - it's their best performing business at the current time. And Chapek, who is running their best performing business, also ran Consumer Products successfully. So since consumer is struggling a bit, I can see that they wanted Chapek to "fix" it.

More likely to go is ESPN....

 

[lazyboy97o]

They won't sell P&R - it's their best performing business at the current time. And Chapek, who is running their best performing business, also ran Consumer Products successfully. So since consumer is struggling a bit, I can see that they wanted Chapek to "fix" it.

This still doesn’t explain a complete restructuring. Doing that based on one man is just silly.

 

[the.dreamfinder]

TWDC is too large to be taken over by private equity.

At this point it is. However, a big scandal, terrorist attack or recession could wipe tens of billions off DIS’ market cap so it could then be feasible to break the company apart.

BTW, I think TWDC should break itself apart on its own terms to acquire and build assets which will make it more competitive in the future. BAMTech and DTC is only the beginning of these needed changes.

 

[the.dreamfinder]

This still doesn’t explain a complete restructuring. Doing that based on one man is just silly.

Observation: P&R and ESPN are the company’s two greatest profit centers, but ESPN’s new president is co-chairman of the division while Chappie, a CP guy despite his two years at P&R, has no parks focused co-chairman.

 

[shortstop]

Observation: P&R and ESPN are the company’s two greatest profit centers, but ESPN’s new president is co-chairman of the division while Chappie, a CP guy despite his two years at P&R, has no parks focused co-chairman.

Hopefully he appoints someone with more park experience to oversee the park underneath him.

 

[lazyboy97o]

Observation: P&R and ESPN are the company’s two greatest profit centers, but ESPN’s new president is co-chairman of the division while Chappie, a CP guy despite his two years at P&R, has no parks focused co-chairman.

That is simple to answer. Theme parks are stupid entertainment for stupid people and anyone who would want to work in the field must also be stupid.

 

[ford91exploder]

At this point it is. However, a big scandal terrorist attack or recession could wipe tens of billions off DIS’ market cap so it could then be feasible to break the company apart.

BTW, I think TWDC should break itself apart on its own terms to acquire and build assets which will make it more competitive in the future. BAMTech and DTC is only the beginning these needed changes.

I agree, I've always thought the optimum corporate structure for TWDC was along the lines of a Korean chaebol or Japanese keiretsu i.e. a small holding core owning independent businesses which have their own P&L so a downturn affecting one company does not affect the rest of the businesses.

 

[ford91exploder]

That is simple to answer. Theme parks are stupid entertainment for stupid people and anyone who would want to work in the field must also be stupid.

Sadly according to @WDW1974 this is exactly how TWDC management feels about the P&R B/U, Not as an interactive artform as Walt and the Nine Old Men saw the parks.

 

[ford91exploder]

They won't sell P&R - it's their best performing business at the current time. And Chapek, who is running their best performing business, also ran Consumer Products successfully. So since consumer is struggling a bit, I can see that they wanted Chapek to "fix" it.

More likely to go is ESPN....

The problem is that even though P&R is TWDC's best performing division, It's the red headed stepchild of the business, Mainly because Iger sees himself as a 'Media Mogul' so P&R gets only the scraps and leavings from the rest of the company and is used as an ATM to prop up the rest of DIS which is underperforming.

As for ESPN, Iger and his minions will ride that horse right to zero because it's the 'BIGGEST' sports media outfit.

 

[EPCOTCenterLover]

If I'm not mistaken, Chapek's first three projects are Tower's Guardians overlay, Toy Story Land, and Pixar Pier. Doesn't look good for the future.

 

[the.dreamfinder]

If I'm not mistaken, Chapek's first three projects are Tower's Guardians overlay, Toy Story Land, and Pixar Pier. Doesn't look good for the future.

The TSLs for Shanghai and Florida were done under Staggs.

 

[brb1006]

As TWDC's recent decision is going on here, Tokyo Disneyland (OLC) is already hard at work with the taping of their 35th Anniversary commercial. Which said anniversary is just a month away.