Disney Bails Out Its European Theme Park

[BoarderPhreak]

Ooops.

http://money.cnn.com/2014/10/06/media/disney-paris-bailout/index.html?iid=HP_River

Paris isn't the happiest place on earth for Disney right now.

For the second time in three years, Walt Disney (DIS) has been forced to ride to the rescue of Disneyland Paris -- this time by leading a billion euro ($1.25 billion) refinancing of park operator Euro Disney.

Since opening in 1992, the theme park east of Paris has become Europe's top tourist attraction by visitor numbers.

But the dream has turned into a nightmare for Disney and other investors.

Attendance has been hit by Europe's economic crisis, leaving the company struggling to invest in new attractions while servicing its massive debts.

Visitor numbers are expected to fall to around 14.1 million this year, 800,000 fewer than in 2013.

Hotel occupancy rates are also slumping -- down to 75% from nearly 80% last year. Euro Disney expects to lose between 110 million and 120 million euros this year.

Walt Disney owns about 40% of its European subsidiary. By guaranteeing a capital increase and converting existing debt into equity, it could end up owning the entire company, depending on whether or not other investors choose to take part in the bailout.

Saudi Prince Alwaleed Bin Talal is the second largest shareholder, with a stake of 10%, according to FactSet.

Euro Disney has a market value of about 124 million euros, and owes Disney 1.75 billion euros.

 

[monothingie]

meh

Attendance has been hit by Europe's economic crisis

once that picks up it'll be fine.

 

[Cmdr_Crimson]

But, it's really looking bad...They had this article on Miceage showing the decay of their Mark Twain River Boat that looks terrible!
http://micechat.com/82631-disney-decay-mark-twain-disintegrates-in-disneyland-paris/

 

[TB4244]

It's been lashed by the European weather which mostly isn't kind. It certainly isn't here in the UK.

 

[Rocabilly]

It costs me an my partner around £2000 for accomodation in a moderate/park tickets/table dining plan at WDW, for 14 days.

It somehow costs £600 for the cheapest accom/tickets, for 4 nights. No dining plan, just the 2 parks, and the most un-disney experience imaginable. (Bearing in mind, that price is advertised as na offer, with 2 of the nights for free!?!?!)

For those of you who haven't had the pleasure of visiting Disney Paris, do not feel that you are missing out.

 

[Animaniac93-98]

It somehow costs £600 for the cheapest accom/tickets, for 4 nights.

My 5-night conceierge level package at Newport Bay cost 705 pounds. Sounds like you picked a bad week to go.

There are days when Pop Century in WDW sells rooms for $210 USD a night (and that's before tax!), not discounted of course, but Pop rarely gets more than 15% off.

I'm not sure what was so "un-disney" about your experience when WDW has so many of its own problems from strollers everywhere to unruly tour groups, to awful humidity and heat that don't exist so much at DLP.

 

[BigTxEars]

But, it's really looking bad...They had this article on Miceage showing the decay of their Mark Twain River Boat that looks terrible!
http://micechat.com/82631-disney-decay-mark-twain-disintegrates-in-disneyland-paris/

Looks like that show "Earth After People" where they did the Disney episdoe

 

[216bruce]

Looks like that show "Earth After People" where they did the Disney episdoe

Most depressing boat ride ever. Geyser area was overgrown with weeds and hadn't "geysered" in years, nothing to see and you are on a boat that looks like it hasn't been painted or maintained at all. Symptomatic of everything wrong with DLP.

 

[pumpkin7]

Are people actually riding on the Mark Twain? 'Cause I wouldn't step food on it. Looks like it's going to sink!

I, like others, won't go back to DLP until they lower the prices. It's just not worth it.

 

[BigTxEars]

Most depressing boat ride ever. Geyser area was overgrown with weeds and hadn't "geysered" in years, nothing to see and you are on a boat that looks like it hasn't been painted or maintained at all. Symptomatic of everything wrong with DLP.

Dang the French need some motivation to fix that up.

 

[The Empress Lilly]

Are people actually riding on the Mark Twain? 'Cause I wouldn't step food on it. Looks like it's going to sink!

The Twain sadly has been in dock for ages. But one of the cool things about DLP is that it has not one, but two riverboats (yay!). Quite different ones at that. Unlike Cheap 'R Us WDW, which only runs one boat anymore.

You can still ride the rivers. And if you show some interest in paddlewheel steamboats they may even invite you for a private tour! ^_^

 

[Animaniac93-98]

The irony with Mark Twain is that the only reason people can see its condition now is that the Molly Brown is under refurbishment. It's clear the cost cutting has meant that DLP only feels like running/maintaining one riverboat at a time, but with the new influx of cash and the Molly Brown coming back into operation on Saturday, hopefully Mark will be fixed or replaced soon (which may be needed at this point).