For those worried about a sale of the Disney Parks...

[Ignohippo]

This article with Tom Staggs appeared yesterday in China. It would appear to be the business model going forward for new Disney Parks internationally. It also may be the reason outside investors were spotted a couple of weeks ago...



" The "Shanghai Mode" is also applied to other fields. With a unique management method, Walt Disneyland and the Chinese party will jointly participate in investment, construction and administrative management of the future amusement park Disneyland Shanghai and other facilities. These all create a precedent in Disney's overseas theme park project management. In this regard, Staggs made more detailed disclosures..

"Disney and Shendi Group established two joint companies: One runs the resort, in which Disney holds most of the shares. The other, as the operator of the resort project, owns and invests in the resort and the theme park, in which Shendi Group holds most of the shares," he said.

He said profits will be distributed to partners on both sides, which is also the precondition for the cooperation. Yet, the specific profit distribution proportion cannot be disclosed."

BUT, according to another China Daily article: "Disney and Shendi Group established two joint companies: "A source close to the deal disclosed that 70 percent of the shares of the management company in charge of the operation of the Disney theme park is controlled by Walt Disney and 30 percent held by Shendi. The properties of the park and its facilities will be controlled by Shendi holding 57 percent of the shares and Walt Disney holding 43 percent.

"To put it in a simple way, Shendi provides funding and land, while Walt Disney offers funding and intellectual property. The two sides share the profits according to the shares they hold," the source said. "

 

[Crush Dude!]

This article with Tom Staggs appeared yesterday in China. It would appear to be the business model going forward for new Disney Parks internationally. It also may be the reason outside investors were spotted a couple of weeks ago...



" The "Shanghai Mode" is also applied to other fields. With a unique management method, Walt Disneyland and the Chinese party will jointly participate in investment, construction and administrative management of the future amusement park Disneyland Shanghai and other facilities. These all create a precedent in Disney's overseas theme park project management. In this regard, Staggs made more detailed disclosures..

"Disney and Shendi Group established two joint companies: One runs the resort, in which Disney holds most of the shares. The other, as the operator of the resort project, owns and invests in the resort and the theme park, in which Shendi Group holds most of the shares," he said.

He said profits will be distributed to partners on both sides, which is also the precondition for the cooperation. Yet, the specific profit distribution proportion cannot be disclosed."

BUT, according to another China Daily article: "Disney and Shendi Group established two joint companies: "A source close to the deal disclosed that 70 percent of the shares of the management company in charge of the operation of the Disney theme park is controlled by Walt Disney and 30 percent held by Shendi. The properties of the park and its facilities will be controlled by Shendi holding 57 percent of the shares and Walt Disney holding 43 percent.

"To put it in a simple way, Shendi provides funding and land, while Walt Disney offers funding and intellectual property. The two sides share the profits according to the shares they hold," the source said. "

Maybe the way to go!

Is tokyo run like this? Their Parks are amazing!!!

 

[Kamikaze]

This isn't a sale. This is very akin to what they do with DLP and TDL. I wouldn't be too upset if they found the right partner for the US parks for a deal like this. But to give a company 100% and only be looking for licensing back, thats what I'm against.

 

[Crush Dude!]

This isn't a sale. This is very akin to what they do with DLP and TDL. I wouldn't be too upset if they found the right partner for the US parks for a deal like this. But to give a company 100% and only be looking for licensing back, thats what I'm against.

Yeah something like this could do wonders for The US parks

 

[Ignohippo]

This isn't a sale. This is very akin to what they do with DLP and TDL. I wouldn't be too upset if they found the right partner for the US parks for a deal like this. But to give a company 100% and only be looking for licensing back, thats what I'm against.

That's the point of the post. It may not be that they're trying to sell the parks, just looking for investors. Definitely for new international parks at least.

It wouldn't surprise me a bit to hear of new parks in Russia and the Middle East sometime soon.

 

[Kamikaze]

That's the point of the post. It may not be that they're trying to sell the parks, just looking for investors. Definitely for new international parks at least.

It wouldn't surprise me a bit to hear of new parks in Russia and the Middle East sometime soon.

Lee was pretty specific that they were looking for buyers for the whole kit and caboodle, not investors/partners.

The Russia rumor had nothing to do with Disney, at all. They hadn't talked to anyone from TWDC.

Middle East I just can't see happening, in this lifetime or the next.

 

[Ignohippo]

Lee was pretty specific that they were looking for buyers for the whole kit and caboodle, not investors/partners.

The Russia rumor had nothing to do with Disney, at all. They hadn't talked to anyone from TWDC.

Middle East I just can't see happening, in this lifetime or the next.

Yeah, Lee is the only thing that gives the rumor credibility. He's right-on with everything he says. Everything's for sale. I just don't see a way that a sale of the parks would make sense, for either Disney or the buyer.

As for the Middle East. You're right, it sounds like a recipe for disaster. But, since the Uni park fell through though, I could see it happening. Maybe downplaying Disney and building the park more around Marvel, Star Wars, etc.? There's talk that Shanghai may include quite a bit about China's history. Perhaps they'd take much more of a local slant with a Middle East park as well.

 

[ob1thx1138]

Middle East I just can't see happening, in this lifetime or the next.

I could very easily see a Disney Land Dubai. Actually I am surprised that it has not already happened. (perhaps the first all indoors park???)

 

[Lee]

That's the point of the post. It may not be that they're trying to sell the parks, just looking for investors. Definitely for new international parks at least.

The meetings in FL were for a sale of all or part of P&R, nothing to do with any international properties. The international deals are a whole 'nother thing.

It wouldn't surprise me a bit to hear of new parks in Russia and the Middle East sometime soon.

It would surprise me. Quite a bit.

Lee was pretty specific that they were looking for buyers for the whole kit and caboodle, not investors/partners.

Buyers for all or part. They would be interested in selling just a majority interest, under the right circumstances.

I could very easily see a Disney Land Dubai. Actually I am surprised that it has not already happened. (perhaps the first all indoors park???)

Nah. I don't see any more international parks for a long time outside of Asia. That's where the economy and growing middle class is, with the largest possibility of expanding the brand. Disney sees the Chinese parks almost as advertisements for it's other products, not so much as products themselves. They hope people will like the parks and start buying DVDs and toys.

 

[bayoubelle]

It's hard for me to believe that Dubai or any other Middle Eastern country would allow any theme park so associated with "The Great Satan" to gain a foothold.

 

[HMF]

There are 2 ways a sale could turn out
Good, Disney's lackluster management of the Florida Parks will be relieved from them especially if new owner is as good as OLC. Bad-Other company could be just as bad or worse at running the parks.But most critically they have to keep WED/WDI running.

 

[disney fan 13]

I could very easily see a Disney Land Dubai. Actually I am surprised that it has not already happened. (perhaps the first all indoors park???)

managment is dumb but there not that dumb

 

[roadtripper]

I can see selling a majority stake in the parks causing a huge political uproar if it's to a Middle Eastern shiek. Many of our politicians would not want to see such an American icon as Disney sold to a foreign company. There would probably be some hurdles in the way. Much easier to swallow if it's a homegrown investor.

 

[donaldfan]

i work in finance for a large bank (take that with a grain of salt, just pointed that out to give you my perspective), and from a complete outsiders view i would be somewhat surprised to see them sell an interest in their north america properties. they may not be growth businesses any longer, but they provide a steady and predictable cash flow to the parent company that they can then re-invest into other ventures. they have already outsourced a small chunk of the florida and ca property through 3rd parties to help spread risk. the only thing that would make me think that they would be interested in selling off the NA P&R division would be if DVC sales fell off a cliff . . .

but what do i know, just my $0.02 :shrug:

 

[Goofy6294]

I wouldn't worry about this being a harbinger of things to come. The Chinese government will not let outside companies operate in the country unless there is a partnership with the government directly or a state-owned entity. Any major international company that has a presence in China operates under the same model. I don't think we'll see any sales of large stakes in the US Parks. The only place I see this model possibly existing is in the Middle East where monarchies/government has a heavy hand in a country's business affairs. However, this has not historically been the case, using oil companies as an example.

 

[floridabill]

Lee was pretty specific that they were looking for buyers for the whole kit and caboodle, not investors/partners.

The Russia rumor had nothing to do with Disney, at all. They hadn't talked to anyone from TWDC.

Middle East I just can't see happening, in this lifetime or the next.

I don't understand though, with the third quarter results being up, and theme park driving most of the profit, why would disney bail on the parks? Ok so they make one quick sale then what? how would they incorporate there movies into rides? through other parks? or a deal with the new owners? just wouldn't make sense. now selling the film division thats another story... But why sell your cash cow!!??

 

[bkgrim]

Do you truly believe the company would sell the part that is making profit right now?

 

[HMF]

Do you truly believe the company would sell the part that is making profit right now?

ESPN? Absolutely not.:animwink:

 

[Spike-in-Berlin]

That's the point of the post. It may not be that they're trying to sell the parks, just looking for investors. Definitely for new international parks at least.

It wouldn't surprise me a bit to hear of new parks in Russia and the Middle East sometime soon.

Russia? You must be kidding. There are now a lot of billionaries and millionaries there but you need a BIG middle class to guarantee that a park is economically successful. And the small Russian middle class visits Europe so they also can go to DLP.
And in the Middle East? Where? Dubai?

 

[invader]

Please, no more parks, fix what you have now.