New Executive Structure?

[disneyny]

I hate all this not knowing and I think by Lee's postings it is very clear something has happened. I keep checking back half expecting to see that the parks have been sold. Kind of like the Meg bomb that was posted yesterday. The silence everywhere speaks volumes right now. My heart wants to believe Steve that there is no chance the parks are being sold but my mind is telling me something else.

 

[wedway71]

Maybe it is just me.... but I just don't see the connection to the sale of the parks... I really don't.

I am not saying it can't happen....but I guess I fail to see the connection,even with this hush-hush meeting at WDW last week..

I have seen my share of Disney management shakeups over the course of time, and never did it amount to the selling of the parks....

Maybe the Prosecution has failed to prove Murder 1...oh wait, wrong conversation....

 

[ScoutN]

Maybe it is just me.... but I just don't see the connection to the sale of the parks... I really don't.

I am not saying it can't happen....but I guess I fail to see the connection,even with this hush-hush meeting at WDW last week..

Internet's revolution of how information is passed.

 

[wedway71]

The wonderful world of the internet....

Just like a crazy game of telephone...

Person 1- He saw someone who looks like Bob Iger at WDW last week.


Person Trillion- They closed down WDW due to Zombies eating guests... and they made Casey Anthony the new President of Disney Parks that will be sold to Iran at a later date.

 

[SeaCastle]

Isn't he Korean? :shrug:

 

[Captain Chaos]

Isn't he Korean? :shrug:

Yep but since when did facts ever get in the way of Disney fans??? LOL....

 

[Pioneer Hall]

The wonderful world of the internet....

Just like a crazy game of telephone...

Person 1- He saw someone who looks like Bob Iger at WDW last week.


Person Trillion- They closed down WDW due to Zombies eating guests... and they made Casey Anthony the new President of Disney Parks that will be sold to Iran at a later date.

Don't be crazy...they were mummies. However, the rest of the bold statement is spot on.

 

[SleepingMonk]

Isn't he Korean? :shrug:

It's all part of the plan man!

 

[PalisadesPkteer]

First of all.

LEE: If i was badgering you please forgive me. Did not feel my post did that but someone else did! (SpaceGhost)

Most products we buy are from China, they own a lot of US debt so yea could see it being possible IF this happens.

IF THIS HAPPENS....

Is it at all possible that the parts that would be sold are Hyperion Wharf and Flamingo Crossings but not the parks?

Then they would get the 2 headaches they have off their hands and yet have some control???

 

[JustInTime]

First of all.

LEE: If i was badgering you please forgive me. Did not feel my post did that but someone else did! (SpaceGhost)

Most products we buy are from China, they own a lot of US debt so yea could see it being possible IF this happens.

IF THIS HAPPENS....

Is it at all possible that the parts that would be sold are Hyperion Wharf and Flamingo Crossings but not the parks?

Then they would get the 2 headaches they have off their hands and yet have some control???

I think whatever is going on may be more serious than that. I just wonder when we will know something official.

 

[misterID]

I'm going to wait for more info from Lee, Al and see what happens at D23 before I start really worrying.

I still think this whole thing could work out as a positive. Meg working closer under the scrutiny of Staggs, I think has the possibilty of being good. The P&R division being sold off... I'm not too sure about that. Eddie had some good points about it. But even if it is, it doesn't mean it would be a bad thing. At least for the parks sakes.

 

[TP2000]

Then why go to the trouble of deleting it? Why not just make me look stupid and leave it up? I mean there are thousands of comments but mine gets deleted. There is more creditability to this rumor than we think.

I agree completely. I often make myself look stupid on the Internets, and then it just sits there for eternity as a reminder of how stupid I am. It can be a very powerful tool. :lookaroun

If it's not a problem, then just let it remain online and look stupid. But if it hits too close to home, they'll delete it. Enough said.

 

[devoy1701]

Lee I appreciated you sharing with us the rumors that have been heading your way.

I find it amusing that people still are in complete denial too.

Not saying that the parks being sold is a done deal...but it's blatently obvious that the discussions have been/are being had right now with all of the insiders I know posting rumors all along the same lines from their sources in Burbank.

 

[spaceghost]

First of all.

LEE: If i was badgering you please forgive me. Did not feel my post did that but someone else did! (SpaceGhost)

Most products we buy are from China, they own a lot of US debt so yea could see it being possible IF this happens.

IF THIS HAPPENS....

Is it at all possible that the parts that would be sold are Hyperion Wharf and Flamingo Crossings but not the parks?

Then they would get the 2 headaches they have off their hands and yet have some control???

I apologize. Lee obviously answered your questions, so my post was unwarranted. I should not speak for him or anyone else, but as a longtime (mostly) lurker of these boards, whenever something like this rumor comes out, people always jump to asking Lee or whomever for more info, when typically I would think that if they could say more they would....but, what do I know. <Lurk mode back on>

 

[devoy1701]

I apologize. Lee obviously answered your questions, so my post was unwarranted. I should not speak for him or anyone else, but as a longtime (mostly) lurker of these boards, whenever something like this rumor comes out, people always jump to asking Lee or whomever for more info, when typically I would think that if they could say more they would....but, what do I know. <Lurk mode back on>

</lurk mode>

It seems that we're running kind of low on people who post regularly as of late...I for one would appreciate that you kept Participate Mode on full... :wave:

these kinds conversations beat those "if you could be in Disney World right now..." threads any day.

 

[menamechris]

Then why go to the trouble of deleting it? Why not just make me look stupid and leave it up? I mean there are thousands of comments but mine gets deleted. There is more creditability to this rumor than we think.

Well, I don't know if this will make you feel any better, but I would seriously doubt that the individuals moderating the Disney facebook page would be privy to any kind of deals being made or information like this. As others have said, they do not want a discussion like this going on...whether it is true or not...

 

[jt04]

Rumors continue to find me...

Re: Sale - Still hearing Chinese. All or part. These rumors are coming from the west coast, and from places where they are either true (to some degree) or being planted at a fairly high level.

Re: Executive Switcheroo - Lots of surprise and unease in the big green building out back of Disneyland. They didn't see Meg coming.

I bet they didn't. I have found that prevailing wisdom and group think are almost always wrong. But I guess most here already know this. Some folks here are in deep denial due to the constant anti-TDO campaign which had little reality. Some here have been utterly duped or used or played....whatever you want to call it. What is especially amazing is those still begging for more kool-aid when the scam has been so utterly discredited. Unbelievable! :lol:

I have always thought that Disney could ultimately sell some of the parks and have made such comments here on these boards. In fact I guessed they could do so while keeping the castle parks. It would not be a complete suprise to me if Disney kept the MK and the monorail resorts and Fort Wilderness and Wilderness Lodge while offering up other parts of the property including a park or two (or even three). EPCOT has to be tempting to a potential buyer and some added capital investment could create something unique, over the top and not found anywhere else. This rumor might also explain the sudden delay to HW.

All that said though, I am going with my initial gut feeling. Which is this is internal to Disney and has to do with a complete overhaul of the management structure. Some win in these situations and some lose.

PS it is never smart to doubt Steve in my opinion.

 

[Brian Noble]

I find it amusing that people still are in complete denial too.

I suppose it could be denial, but I am certainly skeptical.

Factors in favor of a potential sale: operating margins in the P&R segment are relatively thin, they are capital-intensive business lines, and they have high risk factors that are hard to hedge. (For example, if oil hits $200, there are a lot fewer people who will be willing to travel to destination resorts.)

Factors against a potential sale (at least right now): the segment is profitable, and has been even during a pretty nasty downturn in travel demand. As demand continues to recover, segment margin should correspondingly improve. This is a "low point" in segment profitability, and it is unwise to sell on a dip. This segment is also where the rubber really meets the road in giving the company's audience a chance to connect with their product in a real way. That sort of cross-pomotion was why Disneyland was created. It is no accident that the Lands matched the film genres in which the company was actively interested. It is also fair to say that the company has drifted from that model in some of their more recent development, but they are getting back to those roots in small ways---e.g. all of the interactive elements on the second-generation ships. To illustrate: without the parks, it's hard to imagine that it would be as easy as it is to keep the Princesses evergreen from a merchandise standpoint; a new owner would not have the same imperative to do so.


Weighing all the evidence: the biggest reason to sell would be if you think the inherent risk factors in the business lines outweigh the advantages of cross-promotion, *and* you think others are undervaluing the risk. I don't have any particular insight in how the company is forecasting those risk factors, but if they think travel demand is going to crater even worse than it has now, they are probably unusual in that thinking.

Edited to add: I suppose if you had an entity with money to burn, needing a place to invest it, that entity might over-pay for the segment. Then again, that someone would *also* see that operating margins are thin, the business is capital intensive, and has difficult-to-hedge risks. Of all of the things such an entity might invest in, why would P&R be the right thing?

PS: I am also looking forward to Lutz' reaction. So much for "escaping the Florida yoke."

 

[ZHoyt]

Weighing all the evidence: the biggest reason to sell would be if you think the inherent risk factors in the business lines outweigh the advantages of cross-promotion, *and* you think others are undervaluing the risk. I don't have any particular insight in how the company is forecasting those risk factors, but if they think travel demand is going to crater even worse than it has now, they are probably unusual in that thinking.

There have been rumors for years about contingency plans set in place to divest the company of P&R to deal with a peak oil situation, where travel takes a long-term downward hit, not simply a temporary slump due to a down economy. Maybe they're looking 25 years down the road and think that P&R is going to be a long-term loser, especially in Florida?

I also think a lot of the downside could be minimized with a divestment/partial buyout. Sell off a portion to investors, dramatically rearrange management structure, but keep a controlling interest, at least in some areas, to continue to leverage the Disney brand. Remember, investors aren't buying this because of a great flume ride or roller coaster- the value in P&R is intrinsically related to the value of its brand, no investor would drop a nickel into this if they weren't guaranteed a way to keep that. I don't think the global Disney parks are any way "less Disney" than their American counterparts, so personally if a sale goes through I wouldn't mind. I think it is more likely we'd see an increase in quality, especially at WDW, than a decrease. Just another person's uninformed 2 cents.

EDIT: To put it another way in reply to Brian: a sale would NOT end the benefit of cross promotion, because that cross promotion is part of what makes the parks appealing to an investor. So take that out of the equation, and do you really think Disney wouldn't want to divest themselves of a physical asset, risk heavy division that is very different from their core media business?

 

[RSoxNo1]

Who is Casey Anthony?