Honestly, between this, the pandemic operational environment, the post-pandemic operational environment, the China elephant in the room, I'm struggling to see WHY The Walt Disney Company would continue to want to be an operator of theme parks? Regardless of how this settles, FL showed the cards they are willing to play. They don't like CA's cards either. We know at various times the idea of selling the Theme Park operations has come up. No one in Burbank seems to be committed to solving the operational issues or even understanding them. There is no champion for Parks & Resorts, and when everything was going more or less like clockwork, the profits made it worth the operational pain, but is that still true? Especially if the parks are maxed out to the point they have to have a reservation system. Growth potential has to be limited, outside of forever raising prices or massive investment.
Why not start working on a long term strategy to divest from this part of the business? Shrink operations at WDW to the point where someone is willing to take them. I'm thinking things like the water parks, golf (both types), Ft. Wilderness, non-attached to anything resorts like All-Stars, Port Orleans. All the things that made WDW a resort and not just parks + place to sleep. It feels, like they have been moving that way post-pandemic anyway. Just wind them down instead of future investment. When the opportunity arises, sell off the bits that specific entities might have an interest in like Disney Springs, Flamingo Crossing to some property group; sell the Resorts to hotel operators, etc. Sell or long-term lease land, collect the licensing fees, but let the rest be someone else's headache.
What is the argument for keeping them long-term at this point? Money, but they can make money multiple ways. Nostalgia, but TWDC doesn't concern itself with such things.
www.wfla.com
