Dynamic Attractions being sold to Hong Kong company

[Jrb1979]

Disney Ride Manufacturer Dynamic Attractions To Be Sold For $2 Million

Dynamic Attractions, the engineering company which built many of Disney's most beloved rides, is set to be sold for $2 million to Hong Kong-based financial services firm Promising Expert Limited (PEL).

www.forbes.com

Dynamic Attractions, the engineering company which built many of Disney's most beloved rides, including Test Track and Soarin', is set to be sold for CAD$2 million ($1.5 million) to Hong Kong-based financial services firm Promising Expert Limited (PEL).

From the article it sounds like their new prototype coaster ended up costing much more than expected so it caused them to to sell their company.

 

[Comped]

$1.5 million is so cheap I'm surprised Disney didn't buy it for the technology alone...

 

[Jrb1979]

$1.5 million is so cheap I'm surprised Disney didn't buy it for the technology alone...

Even Universal for that matter as they built a bunch of attractions for them too.

 

[Jrb1979]

I thought this would be a bigger story here.

 

[lazyboy97o]

$1.5 million is so cheap I'm surprised Disney didn't buy it for the technology alone...

Why? The systems they built for Disney are largely based on technology owned by Disney.

Neither Disney nor Universal build enough to really support taking on the costs (and liability) of manufacturing ride systems in house. By going to third parties they can go to those who are best with their respective types of systems and they’re not stuck trying to maintain that experience without the requisite work.

 

[rogerrabbitfan9]

I’m kind of surprised how low the cost is. It’d be interesting to get an idea of what their financials really look like. My guess given the sale price is they run in tight margins.

 

[Jrb1979]

I’m kind of surprised how low the cost is. It’d be interesting to get an idea of what their financials really look like. My guess given the sale price is they run in tight margins.

A lot of it had to do a rollercoaster concept they developed. It cost them a lot to try and perfect it. Which led them to this

 

[rogerrabbitfan9]

A lot of it had to do a rollercoaster concept they developed. It cost them a lot to try and perfect it. Which led them to this

I may or may not have posted before reading the full article… but yeah, it looks like all their value is stuck in a bunch of loans and some contracts they have to now deliver on, which they maybe can’t… No fun..

 

[ChrisFL]

if everyone on WDWMagic chipped in...................

 

[Comped]

Why? The systems they built for Disney are largely based on technology owned by Disney.

Neither Disney nor Universal build enough to really support taking on the costs (and liability) of manufacturing ride systems in house. By going to third parties they can go to those who are best with their respective types of systems and they’re not stuck trying to maintain that experience without the requisite work.

Vertical and horizontal integration has been growing in the industry since the pandemic. RMC bought up a flat ride company. ITEC and Thinkwell were bought up by a third company which primary did concert work. Would this have been a different form of consolidation? Yes, but arguably it could have been worth it, especially at such a bloody cheap price, even if Disney just intended to let it be an autonomous thing like parts of Disney have been for years. Integrating things like this not only is a potential revenue centre long-term, but also a cost-saver. A bit of a risk absolutely, but it could very well pay off.

 

[lazyboy97o]

Vertical and horizontal integration has been growing in the industry since the pandemic. RMC bought up a flat ride company. ITEC and Thinkwell were bought up by a third company which primary did concert work. Would this have been a different form of consolidation? Yes, but arguably it could have been worth it, especially at such a bloody cheap price, even if Disney just intended to let it be an autonomous thing like parts of Disney have been for years. Integrating things like this not only is a potential revenue centre long-term, but also a cost-saver. A bit of a risk absolutely, but it could very well pay off.

The business is being sold at a fire sale price because it wasn’t making money. Dynamic Attractions started as a side business and has never really been the big player that was expected. They have these impressive IAAPA announcements for ride systems that largely go unsold.

Disney and Universal also like using third parties because they can pressure them for discounted or even free work. You’re not getting those savings by bringing the work in house. They’re already designing the technology and being able set up manufacturing is something they could do if desired.