Disney buys 1000 acres of land

[danlb_2000]

Perhaps. But with a market capitalization approaching $200 billion and cash on hand at any time of several billion dollars, a $23 million purchase is like you or I going to McDonald's to get an order of fries. It just isn't significant to their bottom line.

... and as someone else pointed out, the land isn't likely to go down in value so they don't have much to loose.

 

[jt04]

Why don't you just give up your tired routine of trying to discredit anyone who ever said something that didn't actually turn out to be true.

I didn't call anyone out by name. And I won't respond to what are clearly tropes when people quit using them. That is what is tiring.

 

[danlb_2000]

I didn't call anyone out by name. And I won't respond to what are clearly tropes when people quit using them. That is what is tiring.

Just because you choose not to believe these "tropes" doesn't mean they aren't true, or weren't once true.

 

[Alice a]

You are underestimating the popularity of nintendo. Several announcements from them got number 1 in the past.
Also nintendo world is being spread out into 3 lands. We already know the first land is mario themed in the third theme park.
The second might be Zelda in islands of adventure.
And the third might be pokemon where kidzone is.
EDIT: You are also underestimating the immersiveness of Nintendo games, a lot of them, especially newer ones are super immersive and would make great theme park lands.

I would pretty much pay anything for the chance to walk through Ocarina of Time or Breath of the Wild's Hyrule (esp. considering they might be the same place!)

I can't ride coasters, but I go to Uni for Harry Potter, and I'd move to Florida for a dedicated Legend of Zelda land. It's an incredibly successful IP whose games frequently top 'Best of' lists, and it has a legion of fans worldwide.

Zelda merch, in particular, is a massive revenue-generator for nintendo. I see plenty of people wearing Zelda shirts at WDW- Mitsukoshi even sells the manga and some clothing.

 

[deeevo]

It is so outrageous that a company can make a twenty-three million dollar purchase, with the most likely reason being "just because."

There are people that can make a 23 million dollar purchase just because you know. Not really outrageous that a company like Disney makes one.

 

[Nubs70]

Could WDW be pursuing Island Theory?

 

[Sirwalterraleigh]

Clearly indicates?

Clear as mud

 

[Sirwalterraleigh]

Yes, there is very little chance of a 5th gate any time soon for a variety of reasons.

Almost none...infinitesimal if we are honest.

 

[MotherOfBirds]

Orlando is so over-saturated as it is. Especially given Uni's 3rd park, any more theme parks or major attractions here would be absurd.

 

[homerdance]

Yes, there is very little chance of a 5th gate any time soon for a variety of reasons.

If they didn’t build a 5th gate for the Lucas acquisitions (Star Wars and Indy) I don’t think a fifth gate will happen for years.

 

[Indy_UK]

I agree. With Star Wars in studios, and Marvel being scattered probably when they have a character they can use (although I think bulk will be Epcot) I really don't see the need for a 5th park.

They are better off making the current 4 parks, a 2 day experience each.

What Disney really needs but aren't interested in is more value resorts.

 

[phillip9698]

I don't see how a Nintendo land can compare to either Harry Potter or Star Wars. Nintendo produced some great games and will be popular but they are different games and putting them in the same land will be fun but in no way can it have a common theme. I loved the original games on the original NES but never got into any of the other systems. 8 bit systems required game play and programming over video and IMO were better than what is out there now. I know it's only my opinion but Harry Potter provided the perfect environment for a themepark while Nintendo lacks it.

A Pokémon land done right would absolutely be on Harry Potter's level or surpass it. The Pokémon IP lends itself to any and every ride, show, VR/AR, interactive queue, restaurant, parade, etc... you could imagine EASILY. You could have a Pokémon land half the size of Epcot and not be stretched thin.

If Comcast pumps money into Pokémon and Mario lands it would make Harry Potter look like an appetizer.

 

[DisneyCane]

This, like the 3,000 acre purchase a few years ago, has nothing to do with development of a 5th gate. They do this because it lowers their taxes. They pass it off as being in the name of conservation, which is more of a side effect.

How does owning more land lower taxes? Since it is for conservation, it may be taxed at a low or zero rate (since if it can't be farmed or developed it doesn't have much value) but no land has property tax credits.

The purchase price will be an expense for income tax purposes but they actually spent the money. They will only save some percentage of the purchase price. This effectively reduces the purchase price but doesn't save them overall.

The most interesting thing in this story is that land near WDW costs $230,000 an acre in bulk undeveloped. No wonder anything residential I've seen along I-4 is high density stuff. If you even developed 1/2 acre lots, after the roads and green space/common areas it will be close to $150,000 just for the land. A 2000 square foot home is going to cost over $200k in construction cost. Plus you have to grade the land and put in utilities and infrastructure. For a developer to get any kind of ROI, that home would have to be sold for over $500k.

 

[Sirwalterraleigh]

If they didn’t build a 5th gate for the Lucas acquisitions (Star Wars and Indy) I don’t think a fifth gate will happen for years.

If that was ever a possibility, it’s long over. I was very optimistic - even confident - that Disney would run LFL effectively when acquired. But the bloom has fallen off that rose....they have done little to position to be viable longterm - which would be required for that kinda park investment. It’s a miniland and window dressing...which frankly should have been done back in the 80’s

I agree. With Star Wars in studios, and Marvel being scattered probably when they have a character they can use (although I think bulk will be Epcot) I really don't see the need for a 5th park.

They are better off making the current 4 parks, a 2 day experience each.

What Disney really needs but aren't interested in is more value resorts.

Their pricing trend for 10+ years is completely inconsistent with the value concept. They don’t want that demographic anymore. If you can’t plunk $10,000 up front or shell out $600+ per DAY in minor upsells, you don’t line McDuck’s bin properly. It’s the sad conclusion/opinion as it stands.

 

[Sirwalterraleigh]

How does owning more land lower taxes? Since it is for conservation, it may be taxed at a low or zero rate (since if it can't be farmed or developed it doesn't have much value) but no land has property tax credits.

The purchase price will be an expense for income tax purposes but they actually spent the money. They will only save some percentage of the purchase price. This effectively reduces the purchase price but doesn't save them overall.

The most interesting thing in this story is that land near WDW costs $230,000 an acre in bulk undeveloped. No wonder anything residential I've seen along I-4 is high density stuff. If you even developed 1/2 acre lots, after the roads and green space/common areas it will be close to $150,000 just for the land. A 2000 square foot home is going to cost over $200k in construction cost. Plus you have to grade the land and put in utilities and infrastructure. For a developer to get any kind of ROI, that home would have to be sold for over $500k.

I’m out of the loop on just how this affects the real estate taxing dynamic currently in Osceola county...

But large deep pocket companies often dump money into “expenses” right at the end of a quarter or fiscal year to dilute earnings for a particular segment in a strategic move to pay it forward. This could fall into that tactic somehow...but disney accounting is super complex/convuluted these days. That’s an Iger era hallmark

 

[monothingie]

Orlando is so over-saturated as it is. Especially given Uni's 3rd park, any more theme parks or major attractions here would be absurd.

Yet everyone complains about overcrowding. Which one is it?
There is a demand and a shortage of capacity.

 

[Unbanshee]

This, like the 3,000 acre purchase a few years ago, has nothing to do with development of a 5th gate. They do this because it lowers their taxes. They pass it off as being in the name of conservation, which is more of a side effect.

But it does have something to do with development. If memory serves, the 3,000 acres was to offset some of flamingo crossing. Not solely for taxes as you suggest

 

[Unbanshee]

Orlando is so over-saturated as it is. Especially given Uni's 3rd park, any more theme parks or major attractions here would be absurd.

I just don't think that's true. The parks are busy and crowded. Saying that Orlando is over-saturated would imply that there are empty parks or parks that just aren't crowded. While this may be true during certain days during the year, it's definitely not true for the vast majority of the year. Disney can open a 5th park and it won't be empty or a failure and Uni can open a 3rd park and it won't be empty or a failure. It's not over-saturated

 

[Kamikaze]

This, like the 3,000 acre purchase a few years ago, has nothing to do with development of a 5th gate. They do this because it lowers their taxes. They pass it off as being in the name of conservation, which is more of a side effect.

Its because they 'promise' to keep a certain percentage of their property as wetlands/conservation. So if they want to develop more of it, they need more land to keep that percentage. It doesn't point to any project in particular, but its not really about 'taxes'.

I just don't think that's true. The parks are busy and crowded. Saying that Orlando is over-saturated would imply that there are empty parks or parks that just aren't crowded. While this may be true during certain days during the year, it's definitely not true for the vast majority of the year. Disney can open a 5th park and it won't be empty or a failure and Uni can open a 3rd park and it won't be empty or a failure. It's not over-saturated

Its not really oversaturated as far as guests go, but as we saw with DAK, the guests from the other three parks spread out to the fourth instead of just adding new guests to fill park #4. It took quite a while before it averaged out to being another 'day' added to the average guest's trip.

The bigger problem with adding a 3rd park at Universal or a 5th at WDW are the employees. The market in Orlando just doesn't exist that would be able to support that many new workers, especially if they both were to open another park. Unless, of course, Disney and Comcast were to raise wages.

 

[The Pho]

The bigger problem with adding a 3rd park at Universal or a 5th at WDW are the employees. The market in Orlando just doesn't exist that would be able to support that many new workers, especially if they both were to open another park. Unless, of course, Disney and Comcast were to raise wages.

There's enough demand from the college program though to pad out whatever they can't find locally.