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

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Advisable Joseph

Well-Known Member
HauntedPirate said:
Can anyone comment (maybe I missed it already?) on if "maintenance capex" is included in this $60B? Saw some posts about things like bus fleet maintenance counting towards that $60B. But I've been reading so many comments in various places that it's all kind of a jumbled mess right now. And I always come back here to get the straight story.
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I saw this post on Seeking Alpha about CapEx.

CapEx is the change in gross fixed assets (i.e. before subtracting depriciation), although there are usually differences between that and the relevant parts of the cash flow section of financial reports due to the exact timing of the actual payments.

CapEx includes "maintenance CapEx." However, from the recent thread on the $17 billion investment, I gather that would not include ordinary maintenance, but only replacements and major improvements which extend the lifetime of assets. An expert would need to clarify this.

When I look at Disney's financial reports, this is the definition of CapEx which makes the numbers make sense.
 
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Haymarket

Haymarket

Well-Known Member
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Haymarket

Haymarket

Well-Known Member
MisterPenguin said:
Please note...

No 5th Gate.​
​
Disneyland forward is not creating a 3rd gate.​
​
Parks with only one park are not creating a 2nd gate.​
​
No new Disneylands elsewhere in the world.​
​
For now.
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"...does not plan to build parks in new countries or cities." (Article summarizing what D'Amaro said to the Times reporter)

No new parks in new countries or cities. New ones.
 
Y

yensid1967

Well-Known Member
The Moles Family said:
Is this higher than what Iger said would be invested in Florida a few months ago?

It all sounds good on paper and common sense would say to invest your most profitable assets but at the same time, they will need to slow down on the price increases in the parks and bring back perks that were taken away, which they won't want to do?
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Remember a few months ago, Iger AGREED that the increase in ticket prices and food was wrong? He never did anything(#1), then now they raise the ticket prices again while the stock price is below $85...shareholders are mad!? I would hope that Disney does the RIGHT THING with the 17.6Billion and the 60Billion over 10 years...but they also said that they will be investing $17.6Billion into WDW...is the $60Billion in addition to or does this include the $17.6Billion?
Another problem with Disney that fans have made known is their time lines on building things. Tron took 5 years to build...UNIVERSAL is building an entire park in 5 years! IF Disney invests $60 Billion into WDW, then I would hope this includes giving the current parks the TLC they deserve and bring back the PRIDE into being a Disney park. Fixing the popcorn lights on MSUSA when they go out, let Imagineers do their jobs and create other lands for the parks and develop a new park! And bring back REEDY CREEK DISTRICT somehow!
 
M

Marionnette

Well-Known Member
yensid1967 said:
Remember a few months ago, Iger AGREED that the increase in ticket prices and food was wrong? He never did anything(#1), then now they raise the ticket prices again while the stock price is below $85...shareholders are mad!? I would hope that Disney does the RIGHT THING with the 17.6Billion and the 60Billion over 10 years...but they also said that they will be investing $17.6Billion into WDW...is the $60Billion in addition to or does this include the $17.6Billion?
Another problem with Disney that fans have made known is their time lines on building things. Tron took 5 years to build...UNIVERSAL is building an entire park in 5 years! IF Disney invests $60 Billion into WDW, then I would hope this includes giving the current parks the TLC they deserve and bring back the PRIDE into being a Disney park. Fixing the popcorn lights on MSUSA when they go out, let Imagineers do their jobs and create other lands for the parks and develop a new park! And bring back REEDY CREEK DISTRICT somehow!
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Disney isn't investing $60B in WDW. They are investing $60B in "parks and experiences" worldwide. That includes the cruiseline, where they have indicated that they hope to double their fleet. I would not expect WDW to get a large piece of that pie.
 
peter11435

peter11435

Well-Known Member
Marionnette said:
Disney isn't investing $60B in WDW. They are investing $60B in "parks and experiences" worldwide. That includes the cruiseline, where they have indicated that they hope to double their fleet. I would not expect WDW to get a large piece of that pie.
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They are well underway on the plan to double the DCL fleet and much of that money has already been spent. Even the current 4 ships expansion would only represent a small fraction of that $60B. A sizable chunk of that $60B is planned to head towards WDW.
 
M

MR.Dis

Well-Known Member
From recent reports, Disney is close to selling their stack in India streaming for 7 to 8 billion. I wonder how much will be used to pay down debt and if any will go into the parks. Anyone have an predictions?
 
pdude81

pdude81

Well-Known Member
MR.Dis said:
From recent reports, Disney is close to selling their stack in India streaming for 7 to 8 billion. I wonder how much will be used to pay down debt and if any will go into the parks. Anyone have an predictions?
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They are about to give Comcast somewhere in the ballpark of $10 billion. I assume this happens in the next month or two based on pushing up the call date.
 
S

Splash4eva

Well-Known Member
MR.Dis said:
From recent reports, Disney is close to selling their stack in India streaming for 7 to 8 billion. I wonder how much will be used to pay down debt and if any will go into the parks. Anyone have an predictions?
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That sale will be used to pay Uni’s share of Hulu just my guess…
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
JoeCamel said:
They certainly don't want to borrow money at these rates.
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I believe they've pre-arranged for short-term credit at favorable rates. But a sale of Hotstar will pretty much cover most of what they'll have to pay for Comcast's share of Hulu. And with $11B in the bank, they most likely will not have to touch extra credit.
 
JD80

JD80

Well-Known Member
MisterPenguin said:
I believe they've pre-arranged for short-term credit at favorable rates. But a sale of Hotstar will pretty much cover most of what they'll have to pay for Comcast's share of Hulu. And with $11B in the bank, they most likely will not have to touch extra credit.
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Large corporations can usually negotiate their own rates with their lenders assuming they have the time and ability to be selective.
 
bmr1591

bmr1591

Well-Known Member
So basically they're going to try and get D+ profitable so that the parks don't have to sustain it, which would allow them to finally reinvest as they'd probably like.
 
JD80

JD80

Well-Known Member
I posted this in the other thread by accident. But with WDI being gutted and the move to FL being aborted they have a 2 year period to ramp up hiring and planning let alone spending significant money on projects.

Timeline makes sense.
 

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