News Capital Expenditures at Disney's domestic theme parks to be cut by 700 million dollars

[JoeCamel]

So if they dump the entire 700M they are cutting from the capital spend into restoring a divided that would be $0.38 a share. Peltz has/controls ?? about $800M worth or ~ 750000 shares for a cool 2.7M a year in his pocket. Not bad for a couple of letters, a slide deck, a press conference and a couple of weeks work. Plus any appreciation of the stock....

 

[JoeCamel]

The money TWDC loses more money on D+ every year than if Disney built a new cruise ship every year and immediately sunk it.

And WDW “cant afford’ to replace the monorails or do something with the Life pavilion.

They can afford to replace the monorails but what store will you go to when you go shopping?

 

[Disstevefan1]

They can afford to replace the monorails but what store will you go to when you go shopping?

I like Target but I do most of my shopping on Amazon. Now THATS magical! A couple of clicks in the morning and your item is at your door step the same day! Like magic!

 

[JoeCamel]

I like Target but I do most of my shopping on Amazon. Now THATS magical! A couple of clicks in the morning and your item is at your door step the same day! Like magic!

That target monorail set might look cute under the Christmas tree but try shoving a sweaty family from Colorado in it after the 3 o'clock parade

 

[Casper Gutman]

That gets more tired every time I see it.

You were the one who brought up EUs building schedule. Seems a fair comparison.

And perhaps if Disney had slipped a nice new dark ride in between the two very similar sci-fi coasters in the dark (or had opened the better one second) Tron’s deficiencies wouldn’t be quite so glaring.

 

[flynnibus]

So if they dump the entire 700M they are cutting from the capital spend into restoring a divided that would be $0.38 a share. Peltz has/controls ?? about $800M worth or ~ 750000 shares for a cool 2.7M a year in his pocket. Not bad for a couple of letters, a slide deck, a press conference and a couple of weeks work. Plus any appreciation of the stock....

Yeah, but it doesn't work quite that way.

1 - They had to buy all that stock - money isn't normally free.. someone is fronting that or wanting something in return. This could also be leveraged from other assets.
2 - Think of all the money they spent on their campaign. DIS has over 800k shareholders... Even if you only spent a dollar on each one... you're pushing a million dollar budget. All the hustling they did, all the firms they hired, all the materials they sent out.. I bet they spent millions. Think how many lawyers, bankers, PR people, finance people were all involved... with their hand out too. Then think of all the swooning that had to happen when you are talking top tier investors.. you don't do that in the amtrak train station .

It's big money being spent on this stuff, but they also try to make big money. They make money through the hustle and try to cash out - They need the cash for the next hustle. They don't usually get to sit and keep all the stock they bought for leverage ('you can't keep 'em all').

The best outcome for them is the rise in stock price and then selling that back off to be liquid for the next "opportunity". They make money through price pumping, buyouts, and selling off assets... not building a portfolio.

These guys spend like crazy because the upside is so good. You don't swing a billion (or even 800M) around to make $1-2 million...

This is a pretty major defeat for them to not get any direct payout. Right now their upside really is just the stock appreciation which they'll turn around and start bleeding off to cash out if they can't get anyone to take their slot.

 

[Minthorne]

First cut - they are not repainting the back of space mountain.

 

[Poseidon Quest]

I’m wondering how that’s any different than Uni? I mean, you have Revenge of the Mummy in a New York section, Transformers randomly plopped down, FatF is a San Francisco(?) area, Kong just there somewhere (is it part of Jurassic Park area). The Jurassic area combines Park and World concepts. Etc.

Uni certainty has quicker timeframes for building stuff, but I’m not sure how they are any better in “understanding” theme parks compared to Disney.

Both Universal parks are kitchen sink experiences with a loose theme to tie them together. "Studio" at the studios (even if the movie making aspect has diminished over the years) and "Adventure" at Islands. Hollywood Studios used to be like this until Disney decided to actively remove the one unifying studio theme from the park.

 

[JoeCamel]

Yeah, but it doesn't work quite that way.

1 - They had to buy all that stock - money isn't normally free.. someone is fronting that or wanting something in return. This could also be leveraged from other assets.
2 - Think of all the money they spent on their campaign. DIS has over 800k shareholders... Even if you only spent a dollar on each one... you're pushing a million dollar budget. All the hustling they did, all the firms they hired, all the materials they sent out.. I bet they spent millions. Think how many lawyers, bankers, PR people, finance people were all involved... with their hand out too. Then think of all the swooning that had to happen when you are talking top tier investors.. you don't do that in the amtrak train station .

It's big money being spent on this stuff, but they also try to make big money. They make money through the hustle and try to cash out - They need the cash for the next hustle. They don't usually get to sit and keep all the stock they bought for leverage ('you can't keep 'em all').

The best outcome for them is the rise in stock price and then selling that back off to be liquid for the next "opportunity". They make money through price pumping, buyouts, and selling off assets... not building a portfolio.

These guys spend like crazy because the upside is so good. You don't swing a billion (or even 800M) around to make $1-2 million...

This is a pretty major defeat for them to not get any direct payout. Right now their upside really is just the stock appreciation which they'll turn around and start bleeding off to cash out if they can't get anyone to take their slot.

Peltz sent out proxy materials or said he would? I got nothing

 

[lentesta]

@lentesta a few weeks back you mentioned CapEx being quietly increased… Is this the ‘ol bait and switch to shareholders of “We definitely reduced spending, pay no attention to us initially increasing it by that exact amount a month ago!”

I was really surprised by this, so I think the $1 b I heard was wrong.

 

[No Name]

I mean this is the same company that lied to investors in 2014 about an extra $800 million going toward “new attractions and entertainment” in Shanghai Disneyland. It obviously went toward cost overruns. 9 years later, there’s no additional attractions and nobody has questioned them on it.

It’s easy to throw around numbers when you never have to go into specifics and everyone will forget about it by next week.