Is disney parks and resorts for sale?

[jhastings74]

By no means am I either an economic expert or an 'in-the-know' person with the Walt Disney Corporation, but I really have to agree with mgf and maxair... I can't comprehend any way that Disney could put a positive spin on the public relations nightmare that would result in selling the domestic parks to a foreign entity. Also, since I am not familiar with this prince and only know the information that others have shared on here about him, he may just be wanting an update on his current investment. I like the idea about a potential middle-eastern pavilion being added to World Showcase, though. I think that is an under-represented culture in the parks.

 

[devoy1701]

I wish that was true but it's not. The parks are far from the most profitable division of the company. Wall Street is all about growth and the Parks division has little growth left, at least domestically.

Very doubtful, if you ask me. The Disney parks and resorts have always been the most profitable part of the entire Disney portfolio. Why sell the cash cow?? Doesnt make much sense if you ask me. Have a great day and a Happy Fourth of July Weekend!!! Marie

The parks are not the most profitable division of the company. I don't think they have been in a very long time. I have 3 years worth of financial data sitting in front of me and during the past 3 years P&R has never been the most profitable, and it is the only division of the company to continue to bring in less Income YoY for the last 2 years (with the exception of the Interactive Media Division...but that is a different beast because they have been making quite a bit of acquisitions in that area over the past couple years to build their presense according to the Annual Reports.) Media Networks, Studio Entertainment, and Consumer Products and Interactive Media are all up from their 2009 Income lows...but not P&R.

Yeah but he's also supposed to be violently ill, isn't he?

Apparently you need the entire board present to discuss matters of this nature...and he is part of the board.

Do I see it likely that they would see off the entire P&R division of the company...no, the backlash by shareholders would be devistating to stock price and public image. To a lot of people TWDC is 2 things...movies with "DISNEY" in big letters at the beginning and the theme parks. Many people do not realize ABC shows, EPSN, Touchstone, etc...there would be a public uproar.

Do I see them selling part ownership? I do...and I don't think it would be a bad thing at this point either. TWDC hasn't much cared about the P&R division as a whole over the past 5 years and I think an outside investor with a strict agreement between them and TWDC like what is in place with OLC could be very beneficial to WDW.... in my eyes and in a lot of people's eyes who have been to the parks overseas, OLC does Disney Theme Parks better than TWDC does them.

And remember, they did sell of the Disney Store. Yes it's Eisner's fault for running such an amazing concept to the ground by overreaching and putting a disney store in every mall across America to sell the same things you can find in any Walmart, but Iger was the one who sold them. And they made a mint on the deal.

 

[Disday]

This whole thread is making me sick. I would think that there should be a shareholder revolt if this lame plan was ever even considered. As far as there being little growth left in the domestic parks, that's a myth created by the bean counters. The reason attendance has been flat is because they've failed to make major new investments in the parks. Walt would be rolling over in his cryo-cooler to think that the current Disney management wants to sell his domestic parks!

 

[SoupBone]

Selling an already established Disney icon that is on American soil? Well, it would be sacrilegious, but anything is possible these days. Look what happen to Anheuser Busch. Family run for 150 years, but when $50 billion comes knocking, you open that door right up!

I know this is all just crazy rumors, but you can bet your last dollar there would be a major uproar from many people here in the states if that were to happen. I know that the current Disney isn't really Walt's anymore either, but selling it to a Middle Eastern family would be a horrific PR nightmare for Disney.

Even if they made it light years better people would have a problem with it. As tolerant as many people here in the U.S. are, this would not be the case considering the nation's history out that way.

 

[devoy1701]

This whole thread is making me sick. I would think that there should be a shareholder revolt if this lame plan was ever even considered. As far as there being little growth left in the domestic parks, that's a myth created by the bean counters. The reason attendance has been flat is because they've failed to make major new investments in the parks. Walt would be rolling over in his cryo-cooler to think that the current Disney management wants to sell his domestic parks!

I've long held that Iger is a money man...in it for the money and listening to the bean counters, not so much the creative forces.

And I've also held that in some instances and businesses (such as P&R) operating with a profit maximizing mentality simply doesn't work. There is a middle ground of making profits and delivering a good product that needs to be reached IMO. Disneyland was created because of a new way to tell adventures and as a way to form synergy between the other divisions of the Disney Company. Of course money was a factor and it had to be profitable to keep investors interested, but it wasn't Walt Disney's chief concern during development (though perhaps it was Walt's). What is happening now to the point where prices are rising, quality is diminishing, etc....and perhaps...just perhaps, the thought of selling the parks off is an example of exactly what Walt feared the most when taking his company public.

 

[Lee]

I would think that there should be a shareholder revolt if this lame plan was ever even considered. (

I wonder about that.
The largest individual shareholder is Steve Jobs. As a member of the board he would have to approve the deal, so he wouldn't have an issue with it.

The bulk of the remaining shares are held by investment firms and giant funds. Most people who own shares either don't even know it, or really don't care about the parks so long as their shares increase in value.

Only the serious fans who also own shares might have an issue with it.

Not that it's happening, of course....

 

[wannabeBelle]

The parks are not the most profitable division of the company. I don't think they have been in a very long time. I have 3 years worth of financial data sitting in front of me and during the past 3 years P&R has never been the most profitable, and it is the only division of the company to continue to bring in less Income YoY for the last 2 years (with the exception of the Interactive Media Division...but that is a different beast because they have been making quite a bit of acquisitions in that area over the past couple years to build their presense according to the Annual Reports.) Media Networks, Studio Entertainment, and Consumer Products and Interactive Media are all up from their 2009 Income lows...but not P&R.

And remember, they did sell of the Disney Store. Yes it's Eisner's fault for running such an amazing concept to the ground by overreaching and putting a disney store in every mall across America to sell the same things you can find in any Walmart, but Iger was the one who sold them. And they made a mint on the deal.

Good fact finding on the profitability, so I will take a step back on that. I still say there is no way this is happening though for any number of reasons, many of which are posted by other people on this thread.
Also didnt Disney re-aquire the Disney store?? I havent seen any great improvements in the store of the merchandise in the store near me, but that is not to say it wont be happening.
Have a great day!!! Marie

 

[Testtrack321]

Not that it's happening, of course....

Using the same "facts" we can reach several conclusions.

1.) The prince will pay for a new WS pavilion.
2.) He wants to buy a large share of DVC points.
3.) He's going to be a large investor in WDC and they met him while he was on vacation.
4.) Him and Iger are reptile-men who want to control the world and are doing a double bluff and meeting in public to discuss their plans with Freemasons and the Illuminati to cripple the dollar, send unemployment to 50%, and create a universal currency and world government.

And remember, they did sell of the Disney Store. Yes it's Eisner's fault for running such an amazing concept to the ground by overreaching and putting a disney store in every mall across America to sell the same things you can find in any Walmart, but Iger was the one who sold them. And they made a mint on the deal.

As stated early, CP owned the stores for 4 years, sending them into a chaotic spooky hell dream of WalMart clothes and bland decorations. They were BOUGHT BACK the stores that weren't already closed. They released a bunch of corporate speak, to which end it basically said "They suck now, it's hurting our brand, we need them back".

I imagine all sorts of parts of the company have been talked about being sold and plans are created as a contingency, as due diligence. But just because there are plans doesn't mean there is a plan or even a will to sell. Just because parents tell their kids how to get out of a house when there is a fire doesn't mean the parents are going to torch the sucker for insurance money that night.

 

[WereMagicLives]

has this ever happend before and i doubt it will anyway the parks make too much money for the current owner

 

[stitch2008]

Im starting to get the feeling this rumor is nothing but nonsense. What I've heard and read is that the board was there to review plans for future projects. Makes sense, considering D23 is 6 weeks away. Also makes sense, since someone I read on Twitter says that there are plans for future attractions in the near future.

And let's actually step for a minute and look at what else is going on at the resort. Theres a thread here about the Four Seasons resort. http://forums.wdwmagic.com/showthread.php?t=766106
Interesting. And who is one of the major investors and key people of Four Seasons Hotels and Resorts? That would be our prince who is meeting with the board.

 

[Testtrack321]

Im starting to get the feeling this rumor is nothing but nonsense. What I've heard and read is that the board was there to review plans for future projects. Makes sense, considering D23 is 6 weeks away. Also makes sense, since someone I read on Twitter says that there are plans for future attractions in the near future.

And let's actually step for a minute and look at what else is going on at the resort. Theres a thread here about the Four Seasons resort. http://forums.wdwmagic.com/showthread.php?t=766106
Interesting. And who is one of the major investors and key people of Four Seasons Hotels and Resorts? That would be our prince who is meeting with the board.

BUT BUT BUT WHAT ABOUT POINTLESS CYNICAL SPECULATION!?!??! :hammer:

 

[wizards8507]

And I've also held that in some instances and businesses (such as P&R) operating with a profit maximizing mentality simply doesn't work.

I think we agree in our conclusions on this one but we get there in two different ways. Your premise (correct me if I'm wrong) is that focus on quality and delivering a good show will ultimately generate more profit for the company in the long run. I wholeheartedly agree with you. Where I disagree is that I believe that this is still a focus on profit. It is not a focus on short-term profit, but on profit nonetheless. You might disagree with what the correct decisions in pursuit of that long-term profit might be, but the goal is still the same.

 

[maxairmike]

I wonder about that.
The largest individual shareholder is Steve Jobs. As a member of the board he would have to approve the deal, so he wouldn't have an issue with it.

The bulk of the remaining shares are held by investment firms and giant funds. Most people who own shares either don't even know it, or really don't care about the parks so long as their shares increase in value.

Only the serious fans who also own shares might have an issue with it.

Not that it's happening, of course....

You might be surprised at how fast people would realize they own Disney shares if such an event were to happen.

Also, all it takes is one large, vocal investor (doesn't have to be a controlling interest) to object and things can get sticky for a public company very quickly. If you want an example (and an endless string of laughs), go look at what Q Funding has been doing to Cedar Fair for the past year. And here's the thing; Q is only in it to turn a profit, but they seem to have found a way to hop on the side of the enthusiasts pretty quickly in some instances to ride those local and enthusiast shareholder votes.

But yes, I'm pretty sure that outright selling of the parks is not really a consideration. I do, however, wonder about the over-leveraging aspect...

To the Four Seasons point, that is a very good bit of information. I was actually going to try a witty post about the Prince being interested in some Golden Oaks property before I read that. :lol:

 

[wizards8507]

Im starting to get the feeling this rumor is nothing but nonsense. What I've heard and read is that the board was there to review plans for future projects. Makes sense, considering D23 is 6 weeks away. Also makes sense, since someone I read on Twitter says that there are plans for future attractions in the near future.

The entire board of directors doesn't need to meet in secret to review plans for future projects. As others (devoy, I think) have said, Parks and Resorts is, comparatively speaking, a small part of the Walt Disney Company. After excluding International Parks and Resorts, Disney Cruise Line, and Disneyland, Walt Disney World is an even smaller part still. Break it down FURTHER into specific parks and specific projects, and there's absolutely no reason why the Board would be on location, in its entirety, to review the project. I might be wrong, but I really doubt that entire board was even there when DAK opened. Boards of Directors are only concerned with very high-level decisions, and having them present to discuss plans for a new E-ticket would be the equivalent of Wal-mart's board showing up for the grand opening of a new store in Wichitaw.

 

[GrumpyFan]

And let's actually step for a minute and look at what else is going on at the resort. Theres a thread here about the Four Seasons resort. http://forums.wdwmagic.com/showthread.php?t=766106
Interesting. And who is one of the major investors and key people of Four Seasons Hotels and Resorts? That would be our prince who is meeting with the board.

Excellent point! I thought I remembered that he was. This may just be a meeting of the minds to discuss alternative options to his investing in to WDW since the hotel has been delayed. I would guess that this may also be about reassuring him that his investment is still a good idea and maybe even showing him the 5-10 year plan.

 

[Captain Chaos]

BUT BUT BUT WHAT ABOUT POINTLESS CYNICAL SPECULATION!?!??! :hammer:

Pointless cynical speculation + doom and gloom = the typical disney online fanboy....

 

[stitch2008]

The entire board of directors doesn't need to meet in secret to review plans for future projects. As others (devoy, I think) have said, Parks and Resorts is, comparatively speaking, a small part of the Walt Disney Company. After excluding International Parks and Resorts, Disney Cruise Line, and Disneyland, Walt Disney World is an even smaller part still. Break it down FURTHER into specific parks and specific projects, and there's absolutely no reason why the Board would be on location, in its entirety, to review the project. I might be wrong, but I really doubt that entire board was even there when DAK opened. Boards of Directors are only concerned with very high-level decisions, and having them present to discuss plans for a new E-ticket would be the equivalent of Wal-mart's board showing up for the grand opening of a new store in Wichitaw.

Why not? If I'm a board member, I'd like to see exactly what the company is spending money on now and what they will spending money on in the future. And meeting in secret? I'm sure the board members have "secret meetings" to discuss things regarding the company all the time.

 

[njDizFan]

Obviously there are very few people who know exactly what is being talked about in these meetings.

It could be about expansion, investing, and maybe about a possible sell off of the P&R.

It is fairly unlikely but not impossible.

But I do believe that spinning off P&R and selling them has certainly been at least discussed. Maybe not in this meeting, and maybe not to the aforementioned Prince.

If Iger could I think he would.

 

[xdan0920]

This is the worst "secret" meeting in the history of the world.

 

[njDizFan]

I just had a few spare minutes to read that thread over at Laughing Place. That is hilarious. Talk about jumping to wild crazy conclusions. The basis of the whole things appears to be a crazy conspiracy back-theory, some twitter postings, that have no way to be validated. A sighting by a Boardwalk concierge, and then a whole lot of wild assumptions. Having read the source of it, I'm even more certain it is total fiction. At least the original poster got a lot of attention that he so desperately craves.

Definately a fun read...no hard feelings I hope.