Star Wars Park?

[PhotoDave219]

Except if this DOES happen the stock will tank, I don't envy the next management team as pretty much their only options to keep the stock price high is to follow the Iger model so the options are.

1 - Continue with minimal investment in P&R
2 - Sell the parks
3 - Lease the parks.

The problem is Wall St is so used to TWDC handing back cash to the stockholders via repurchases, the market will react swiftly and negatively if they change their current path. Options 2&3 get around that because it will be someone ELSE's CAPEX not TWDC's

No no.... The problem is that Wall Street is never told no. They're like a petulant child.

 

[HauntedMansionFLA]

Except if this DOES happen the stock will tank, I don't envy the next management team as pretty much their only options to keep the stock price high is to follow the Iger model so the options are.

1 - Continue with minimal investment in P&R
2 - Sell the parks
3 - Lease the parks.

The problem is Wall St is so used to TWDC handing back cash to the stockholders via repurchases, the market will react swiftly and negatively if they change their current path. Options 2&3 get around that because it will be someone ELSE's CAPEX not TWDC's

I remember when Comcast tried to do a hostile takeover of Disney a few years back. It's possible they could sell the parks. GE sold NBC and will be getting rid of their appliance division in a few months. Never say never. Would it ever be possible to partner with another big time corporation? ( Apple ) ?

 

[HauntedMansionFLA]

No no.... The problem is that Wall Street is never told no. They're like a petulant child.

Very true......silver spoon

 

[EOD K9]

The next movie after Ep7 comes out December 2016. If they wait to see the box office take on Ep7 it will be to late from them to have anything major open by the next movie. Besides, they really don't need to wait, the success of Ep7 is about as sure a thing as you can get in Hollywood.

They already have the success of Episodes I-VI. This should have happened a ways back.

 

[ford91exploder]

Disagree completely as the market still has room to grow and technology allows for controlling costs. The airport is expanding due to continued growth in central Florida and the tourism numbers speak for themselves.

Plus 'Star Wars'.

The Street loves Disney because it's pushing back so much cash in the form of buybacks to the street, If TWDC stopped doing that to reinvest in P&R the stock would immediately drop, Disney has been steadily decreasing investments in domestic P&R which are now at 7.4% and dropping.

If Disney were to increase CAPEX by reducing buybacks gauging by other companies which did the same we would see a 'correction' in prices of anywhere from 10-30% and the shareholder lawsuits would fly. Disney MIGHT be able to borrow but even then that could send the 'wrong' signal to the 'Street.

The worst thing Iger has done is the massive buyback program which is far larger in size than comparable companies, It's hobbled Disney's ability to invest in any of their lines of business in a meaningful way.

 

[ford91exploder]

They already have the success of Episodes I-VI. This should have happened a ways back.

Yes, yes it should have - Disney has had the Potter Swatter since they bought the Star Wars theme park rights, The Potter Swatter has always been Star Wars it's insanely popular with ALL demographics, It's DIsney's unwillingness to invest in a meaningful fashion which has allowed UNI to grow.

 

[HauntedMansionFLA]

The Street loves Disney because it's pushing back so much cash in the form of buybacks to the street, If TWDC stopped doing that to reinvest in P&R the stock would immediately drop, Disney has been steadily decreasing investments in domestic P&R which are now at 7.4% and dropping.

If Disney were to increase CAPEX by reducing buybacks gauging by other companies which did the same we would see a 'correction' in prices of anywhere from 10-30% and the shareholder lawsuits would fly. Disney MIGHT be able to borrow but even then that could send the 'wrong' signal to the 'Street.

The worst thing Iger has done is the massive buyback program which is far larger in size than comparable companies, It's hobbled Disney's ability to invest in any of their lines of business in a meaningful way.

It's like your a professor of economics. Excellent points all around. These are the issues most people don't think about when they argue about investing in the parks. I pity whoever takes over for Iger. One bad move and Wall Street could turn on them.

 

[HauntedMansionFLA]

Yes, yes it should have - Disney has had the Potter Swatter since they bought the Star Wars theme park rights, The Potter Swatter has always been Star Wars it's insanely popular with ALL demographics, It's DIsney's unwillingness to invest in a meaningful fashion which has allowed UNI to grow.

They know they can make their money back just on merchandising alone. That's why they are dragging their feet.

 

[ford91exploder]

They know they can make their money back just on merchandising alone. That's why they are dragging their feet.

Oh absolutely true, But it's always fun hearing about Glendale looking for the 'Potter Swatter' when they've had it all along... It's like playing Doom and NOT using the BFG9000 when you have it.

 

[EOD K9]

Oh absolutely true, But it's always fun hearing about Glendale looking for the 'Potter Swatter' when they've had it all along... It's like playing Doom and NOT using the BFG9000 when you have it.

As Glinda said to Dorothy, "You've had the power all along".

 

[Animaniac93-98]

As Glinda said to the Witch, "You have no power here, be gone before someone drops a house on you!".

Is that what Iger said to George after he gave the rights of his characters to Disney?

 

[HauntedMansionFLA]

Except if this DOES happen the stock will tank, I don't envy the next management team as pretty much their only options to keep the stock price high is to follow the Iger model so the options are.

1 - Continue with minimal investment in P&R
2 - Sell the parks
3 - Lease the parks.

The problem is Wall St is so used to TWDC handing back cash to the stockholders via repurchases, the market will react swiftly and negatively if they change their current path. Options 2&3 get around that because it will be someone ELSE's CAPEX not TWDC's

It was reported in early 2015, Apple has 178 billion in Cash ( which is crazy ). More than enough to buy Disney out. Comcast would jump at the chance to buy up the FLA parks.

 

[HauntedMansionFLA]

Do they think they will re-visit the Star Wars Boutique Park with highly personalized experiences that was rumored around 2013 - charging around $ 200 for about 6 hours?

 

[ItlngrlBella]

Do they think they will re-visit the Star Wars Boutique Park with highly personalized experiences that was rumored around 2013 - charging around $ 200 for about 6 hours?

Missed that - would love to know examples of personal SW experiences - that's "swimming with the dolphins-level/Discovery Cove" money right there. I'm a SW fan but for me and my family to spend that much $ (we are your average middle-class w/school loans and little kiddo's) - I would have a hard time with that.

 

[bhg469]

Missed that - would love to know examples of personal SW experiences - that's "swimming with the dolphins-level/Discovery Cove" money right there. I'm a SW fan but for me and my family to spend that much $ (we are your average middle-class w/school loans and little kiddo's) - I would have a hard time with that.

You get to swim with space dolphins!

 

[Ignohippo]

It looks like JJ is going to Deliver an excellent movie - going back to old school Star Wars. I am thankful that Disney put the brakes on the Star Wars attractions a few years back because they probably would have just put out average rides. After seeing Potter Land up the road, Disney knows they have to get this land right and leap frog over Potter land. It can be a game changer and make it the must see park.

Not saying Star Wars would get its own park, but imagine if Uni would have made Potter its own gate, with its own Hogwarts-themed hotel.

As big as Potter is for them, its own park would have been HUGE. Iger & Co. have to be seriously thinking about that with Star Wars.

I don't think a fifth gate is as far-fetched as other seem to believe. It certainly would be if Potter hadn't been such a success and if the property we're talking about weren't Star Wars.

And Disney doesn't have to rely on just this one property to bring people to its other parks.

 

[andysol]

Not saying Star Wars would get its own park, but imagine if Uni would have made Potter its own gate, with its own Hogwarts-themed hotel.

As big as Potter is for them, its own park would have been HUGE. Iger & Co. have to be seriously thinking about that with Star Wars.

I don't think a fifth gate is as far-fetched as other seem to believe. It certainly would be if Potter hadn't been such a success and if the property we're talking about weren't Star Wars.

And Disney doesn't have to rely on just this one property to bring people to its other parks.

I completely disagree. I think a potter third gate would be have been a disaster- and I think universal did it brilliantly splitting it between the two parks. Had they opened only a third gate, their attendance growth at the other two would likely be nowhere Near what it was.


Likewise, while I personally and selfishly would love an enormous Star Wars park- it is a simply terrible fiscal choice- and bad for WDW as a whole.

If I have a leaky sink, adding another sink to my house doesn't fix the leaky sink.

DHS is a leaky sink and a mediocre (at best) park. Star Wars land alone (not even including Pixar) turns it into a must visit destination. That in and of itself is reason enough that DHS needs Star Wars Land.

 

[MarkTwain]

Also, I was thinking about the news about the desert planet in Ep 7 not being Tatooine but being "Jakku" instead. Many of us thought that with the reported park emphasis being on Ep 7 and with Tatooine being featured in that film (as well as 5/6 of the other films), that theming a "Star Wars Land" to Tatooine was probably a no brainer. Now, with Jakku in the picture, I'm not so sure what will happen -- you could still have a desert theme, but you couldn't effectively represent both places (could you?) so those dreams of Mos Eisley Cantina, Jabba's Palace, the Sarlacc pit, pod racing, etc. might not come to pass.

Why couldn't you? Places like Adventureland and Fantasyland combine many places that are geographically disparate – Asian jungles with Caribbean buildings and African treehouses, or French chateaus next to Bavarian villages. Even the "Asia" part of Animal Kingdom mixes Indian tropical rainforests with alpine Nepal.

By that logic, "desert planets from Star Wars" should be even easier to pull off in terms of a seamless themed environment.

 

[Ignohippo]

I completely disagree. I think a potter third gate would be have been a disaster- and I think universal did it brilliantly splitting it between the two parks. Had they opened only a third gate, their attendance growth at the other two would likely be nowhere Near what it was.


Likewise, while I personally and selfishly would love an enormous Star Wars park- it is a simply terrible fiscal choice- and bad for WDW as a whole.

If I have a leaky sink, adding another sink to my house doesn't fix the leaky sink.

DHS is a leaky sink and a mediocre (at best) park. Star Wars land alone (not even including Pixar) turns it into a must visit destination. That in and of itself is reason enough that DHS needs Star Wars Land.

It goes without saying that you'd have to bring attractions to DHS and EPCOT to continue to make them viable as full day options.

DHS could build a true Pixar Place and easily be worthy of a day on a person's itinerary. DHS doesn't NEED SW if it were to do that. It would be a viable park without it.

Uni HAS to have Potter in order to bring those audiences to its parks. While it does have some incredible IPs, none are even close to Potter, Pixar or Disney (Marvel, yes, but they can't expand on their current offerings).

Disney could build a SW park and still have the IPs to draw people to its parks.

 

[jt04]

The Street loves Disney because it's pushing back so much cash in the form of buybacks to the street, If TWDC stopped doing that to reinvest in P&R the stock would immediately drop, Disney has been steadily decreasing investments in domestic P&R which are now at 7.4% and dropping.

If Disney were to increase CAPEX by reducing buybacks gauging by other companies which did the same we would see a 'correction' in prices of anywhere from 10-30% and the shareholder lawsuits would fly. Disney MIGHT be able to borrow but even then that could send the 'wrong' signal to the 'Street.

The worst thing Iger has done is the massive buyback program which is far larger in size than comparable companies, It's hobbled Disney's ability to invest in any of their lines of business in a meaningful way.

I remember when some said his worst decision was overpaying for Pixar. Then they said animation could not be rescued. Then they said Shanghai would never happen. Then they said DCA 2.0 was not going to work. And then that the mouse overpayed for Marvel. Some even said that about Lucasfilm believe it or not.

And so it continues.