News Disney plans to accelerate Parks investment to $60 billion over 10 years

Sir_Cliff

Sir_Cliff

Well-Known Member
Nubs70 said:
Disney should be building during recessions with projects coming online on the exit out of the recession.
Click to expand...
I'm not sure that idea works so much if the recession coincides with rising prices and a great deal of uncertainty about whether there will be seismic shifts in the architecture of the global economy and what they will mean. While there is always uncertainty around an economic downturn/recession, the volatility at present is on another level from perhaps any other recession that has occurred since WDW's opening. But, who knows, maybe there will be no recession and everything that was causing anxiety will disappear tomorrow. Or maybe there will be a whole host of new concerns announced the day after that. We are living through interesting times.

The reason I think most of it will happen (thought I would be happy if all the MK stuff was pulled for re-thinking) is that, whatever happens, they are so lacking in capacity in WDW that they probably need to keep building to get to where they should already be.
 
Jrb1979

Jrb1979

Well-Known Member
Sir_Cliff said:
I'm not sure that idea works so much if the recession coincides with rising prices and a great deal of uncertainty about whether there will be seismic shifts in the architecture of the global economy and what they will mean. While there is always uncertainty around an economic downturn/recession, the volatility at present is on another level from perhaps any other recession that has occurred since WDW's opening. But, who knows, maybe there will be no recession and everything that was causing anxiety will disappear tomorrow. Or maybe there will be a whole host of new concerns announced the day after that. We are living through interesting times.

The reason I think most of it will happen (thought I would be happy if all the MK stuff was pulled for re-thinking) is that, whatever happens, they are so lacking in capacity in WDW that they probably need to keep building to get to where they should already be.
Click to expand...
I agree they need to keep building and they lack capacity. At the same time they have lacked capacity for a very long time and have done little about it. The other thing they need to understand that parks need more than E tickets to fill them out.
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
Sir_Cliff said:
I'm not sure that idea works so much if the recession coincides with rising prices and a great deal of uncertainty about whether there will be seismic shifts in the architecture of the global economy and what they will mean. While there is always uncertainty around an economic downturn/recession, the volatility at present is on another level from perhaps any other recession that has occurred since WDW's opening. But, who knows, maybe there will be no recession and everything that was causing anxiety will disappear tomorrow. Or maybe there will be a whole host of new concerns announced the day after that. We are living through interesting times.

The reason I think most of it will happen (thought I would be happy if all the MK stuff was pulled for re-thinking) is that, whatever happens, they are so lacking in capacity in WDW that they probably need to keep building to get to where they should already be.
Click to expand...
Disney parks have never suffered a downturn without a global financial recession

Why does that factoid matter now?
 
Andrew C

Andrew C

You know what's funny?
Sir_Cliff said:
the volatility at present is on another level from perhaps any other recession that has occurred since WDW's opening.
Click to expand...
Huh? The 2008 recession/housing crisis was a disaster for all. 9/11 sucked. Covid forced Disney to close. The oil crisis of the 70s. Heck, the ridiculous inflation we had to deal with just a couple years ago. The only thing that has happened here so far is market volatility due to uncertainty thats likely to come more certain before the end of this year.
 
coffeefan

coffeefan

Well-Known Member
Andrew C said:
Huh? The 2008 recession/housing crisis was a disaster for all. 9/11 sucked. Covid forced Disney to close. The oil crisis of the 70s. Heck, the ridiculous inflation we had to deal with just a couple years ago. The only thing that has happened here so far is market volatility due to uncertainty thats likely to come more certain before the end of this year.
Click to expand...
Everything that's happening right now is completely optional and self-inflicted.
 
co10064

co10064

Well-Known Member
Premium Member
lentesta said:
That makes it impossible to tell the board how much these things are going to cost. And since they can't tell the board, they can't get approval.
Click to expand...
On the one hand, this makes complete sense, but on the other hand, the board had to have already approved the WDW $17 billion spend (or announcement of such a spending plan).

Seems a bit extreme for the board to say “our $17 billion won’t go as far, so let’s only spend $500 million for now.” Unfortunately boards/investors aren’t always logical, and a recession or threat thereof can cause people to do irrational things. But what do I know?
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
John park hopper said:
Disney stock sure is down -they may have to rethink think their 60 billion
Click to expand...
Stock prices don't affect their profit/loss. If costs and income are the same quarter after quarter, well, then they're the same. And they generate cash to be invested back into the company. Stock prices doubling or halved doesn't change that.

It's like if the value of your house went down... it doesn't change your salary or your expenses. In fact you can be making lots of money and get really rich all the while the resale value of your house craters.
 
M

MR.Dis

Well-Known Member
MisterPenguin said:
Stock prices don't affect their profit/loss. If costs and income are the same quarter after quarter, well, then they're the same. And they generate cash to be invested back into the company. Stock prices doubling or halved doesn't change that.

It's like if the value of your house went down... it doesn't change your salary or your expenses. In fact you can be making lots of money and get really rich all the while the resale value of your house craters.
Click to expand...
Actually this is a golden opportunity for Disney. An enlightened leadership would use the stock price decrease to buy back some stock. In the long term this is a great strategy, alass I have no faith Disney leadership will jump on this situation.
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
MR.Dis said:
Actually this is a golden opportunity for Disney. An enlightened leadership would use the stock price decrease to buy back some stock. In the long term this is a great strategy, alass I have no faith Disney leadership will jump on this situation.
Click to expand...
Could be, but...

1. They have no idea how long or deep the slump is. So, if they do a buy back and it doesn't goose their stocks, it will seem to be a waste of money.

2. TWDC still owes about $45B. They don't have a lot of cash on hand and the cash they do have is spoken for by the announced projects.
 
Tha Realest

Tha Realest

Well-Known Member
MisterPenguin said:
2. TWDC still owes about $45B. They don't have a lot of cash on hand and the cash they do have is spoken for by the announced projects.
Click to expand...
They did a $3 billion stock buyback in February 2024, which was the start of the buyback program, five months after stating it would be starting a ten-year, $60 billion investment in the parks.
 

Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.

Back
Top Bottom