lynnie5150
New Member
I wish I could have back the 30 seconds of my life wasted on seeing what this thread was about.:brick:
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Disney Bankrupt
- Thread starter Imagineer Mitch
- Start date
fngoofy
Well-Known Member
"Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organization)."
just to be clear
disney9752
Member
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!! I'm having flashbacks of why einser came to be.:fork:
Dollysmama
New Member
I would be soooooooooo sad if that ever happened. I like Disney the way it is, I couldnt imagine what a new owner would do with it????????????????
cpeterstx
Member
Fade_to_Blah
Member
I believe that my baseball card collection is reserved for such an occasion. After a quick E-bay sale, some carpentry and paint, and new CM uniforms, Red Sox World would be open for business.
haha! I would vacation there!
KingdomHeart
New Member
Can we get the title of this thread changed to "What if Disney ever went bankrupt?" cause every time I see this thread my head goes " NOT POSSIBLE!" and it reeks of flame.
-Nicholas
-Nicholas
I think they would sell off various segments of the company before going into bankruptcy. For example, ESPN, ABC, etc . . . They also have a gold mine in intellectual property, such as Mickey Mouse, the movies, the TV shows, etc . . .
Before bankruptcy, you would probably start seeing more non-disney ads on the Disney Channel, more sponsorships in the parks ("Expedition Everest, brought to you by Halls cough drops"), and Mickey's face on everything from Oreo cookies to drain cleaner.
I invest in Disney because there are so many safety nets due in large part to the intellectual properties and diversification. They are the leader in entertainment, and will keep on growing intelligently for the foreseeable future. It would truly take a disaster such as a widespread terrorist attack to put them out of business, but many businesses would go under if that were to happen.
By the way, it's a great time to invest in Disney stock. Simply go to the Disney website to read up on it. You can actually buy stock every month directly from Disney. All stocks are beat up, so Disney stock is probably a bargain right now.
Before bankruptcy, you would probably start seeing more non-disney ads on the Disney Channel, more sponsorships in the parks ("Expedition Everest, brought to you by Halls cough drops"), and Mickey's face on everything from Oreo cookies to drain cleaner.
I invest in Disney because there are so many safety nets due in large part to the intellectual properties and diversification. They are the leader in entertainment, and will keep on growing intelligently for the foreseeable future. It would truly take a disaster such as a widespread terrorist attack to put them out of business, but many businesses would go under if that were to happen.
By the way, it's a great time to invest in Disney stock. Simply go to the Disney website to read up on it. You can actually buy stock every month directly from Disney. All stocks are beat up, so Disney stock is probably a bargain right now.
Disney isn't immune to financial disaster. It doesn't have to be a terrorist attack or natural disaster that sets its demise in motion. That's ridiculous. The patents it holds I'm sure help with cashflow, but the company was almost decimated in the 80s. I wouldn't consider Disney the leader in entertainment either. But that's just me.
As of right now, Disney is down $.90 from yesterday. It's currently $16.04 per share.
DisneyYorkian74
Active Member
It's hard to imagine WDW ever going bankrupt when you consider how overpriced just about everything is in the entire resort.
I would like to know how much profit Disney makes off of the Magic Kingdom parking lot alone...
Seriously, $5 for a bag of cotton candy and I see lines of people going to buy it; I really never worry about WDW ever going bankrupt.
I would like to know how much profit Disney makes off of the Magic Kingdom parking lot alone...
Seriously, $5 for a bag of cotton candy and I see lines of people going to buy it; I really never worry about WDW ever going bankrupt.
As I understand it, Disney wasn't really going bankrupt in the 80's, it was the target of hostile takeovers from other companies and people who knew how valuable the intangible assets were. If disney wanted to avoid the takeover, they needed to become a more aggressive company that focused on its financials, created new and exciting products and venues, and acknowledged that competition was starting to eat away at its position. Times were hard, the company was weaker (but not nearly bankrupt), and the marketing mindset was a mess. Few blockbuster movies were being done (remember The Black Cauldron?), and the parks were mostly underutilized, stale (in many people's opinions), and undermarketed. As late as 1993 the travel planning video was advertising off-site hotels instead of taking advantage of the lodgings on site.
Eisner, rightly or wrongly, was largely responsible for turning it around, seeing the inherent value of the company's assets, and transforming it into the financial behemoth that it has become. Mismanagement could certainly kill the company someday in the same way it is killing General Motors right now, but the trademarks and copyrights are so valuable that a collapse due to mismanagement is very unlikely.
When you watch the opening of Magic Kingdom, with all the characters coming off the train to greet the guests, you may be looking at $50,000,000,000.00 worth of intellectual property. That's fifty billion, and even that may be conservative. Used properly, these assets, along with the films, distribution company, networks, ships, and everything else should be healthy for a long time to come. Which would you rather own, the rights to Mickey Mouse, the formula for Coca-Cola, a foundry, or a rusty GM factory?
Finally, Disney stock was selling at about $30 per share a year ago. It's half that now (I don't watch daily fluctuations that much), and that is why it may be a bargain right now. Almost all stocks are down, but Disney is down far less than most because of its inherent strengths. To truly value stock, you need to consider its historic value, its price to earnings ratio, its dividend ratio, its debts, and its assets. Under these considerations, Disney may be a bargain--or maybe not.
Eisner, rightly or wrongly, was largely responsible for turning it around, seeing the inherent value of the company's assets, and transforming it into the financial behemoth that it has become. Mismanagement could certainly kill the company someday in the same way it is killing General Motors right now, but the trademarks and copyrights are so valuable that a collapse due to mismanagement is very unlikely.
When you watch the opening of Magic Kingdom, with all the characters coming off the train to greet the guests, you may be looking at $50,000,000,000.00 worth of intellectual property. That's fifty billion, and even that may be conservative. Used properly, these assets, along with the films, distribution company, networks, ships, and everything else should be healthy for a long time to come. Which would you rather own, the rights to Mickey Mouse, the formula for Coca-Cola, a foundry, or a rusty GM factory?
Finally, Disney stock was selling at about $30 per share a year ago. It's half that now (I don't watch daily fluctuations that much), and that is why it may be a bargain right now. Almost all stocks are down, but Disney is down far less than most because of its inherent strengths. To truly value stock, you need to consider its historic value, its price to earnings ratio, its dividend ratio, its debts, and its assets. Under these considerations, Disney may be a bargain--or maybe not.