rael ramone
Well-Known Member
It's like they are in panic mode.
-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
The Spirited 11th Hour ...
- Thread starter WDW1974
- Start date
It's like they are in panic mode.
ford91exploder
Resident Curmudgeon
Yes and that scares me, The way they have spent money for the past 5 years or so has bothered me greatly but now it seems they are in a full blown panic so one wonders what shoe is going to drop.
rael ramone
Well-Known Member
It's like someone (or a lot of someones) have been told to increase the margin by an unreasonable amount or they will be pumping gas.
asianway
Well-Known Member
Certainly reeks of someone wanting to puff up numbers for due diligence. Too bad we're not that lucky
ford91exploder
Resident Curmudgeon
Never though of it in those terms, That scenario also makes sense
WildcatDen
Well-Known Member
Scares you??? I sorta pictured you doing your happy dance. You have been predicting the company would be spun off or close for the better part of the last year??? I do not think you have committed to an actual date, but I recall 2, 3, or 4 years. Regardless, prior to the 50th.
jakeman
Well-Known Member
There is literally another thread with the reason for all this right in the title:
http://forums.wdwmagic.com/threads/...-resorts-thanks-to-shanghai-and-paris.909756/
It's a thread that each one of you posted in.
Last edited:
Bairstow
Well-Known Member
I think they're just experimenting with how high they can raise the prices while reducing quality. I have a feeling the limits here before they truly begin to cut into their numbers are a lot higher than most people would like to think.
Katie G
Well-Known Member
I don't think that word means what you think it means.
Surge pricing = I checked the price when I left my house but by the time I got to the front of the park, there were so many people that they raised the price. Typically this type of pricing is used to encourage more supply to even out demand, which theme parks cannot do since their supply is constant.
I think the term you are looking for is Seasonal Pricing. Its been used for years and years with hotels, cruises, ski resorts (lift tickets)... etc. Not a new concept and not unreasonable at a place that experiences different levels of demand throughout the year.
Nubs70
Well-Known Member
If only. The place needs to go private.
ford91exploder
Resident Curmudgeon
What makes you think I would be happy with that outcome, I've visited the place for 30 years starting as a kid, I've watched Iger and company basically loot the company over the past few years, Just because I believe something is going to happen does NOT mean I will be pleased with the outcome.
As to the parks please recall that Iger was shopping the parks around for sale in 2008 with Prince Alaweed being the most likely buyer, The financial crisis put an end to that.
While the business units will continue if TWDC blows up that will likely be the end of Disney as we know it and that will not be good for ANYONE except perhaps for the senior executives who will float off on their golden parachutes while the ordinary CM and shareholders take it on the chin.
FigmentJedi
Well-Known Member
Thank You Walt Disney, the group that's working to turn the Laugh-O-Grams building in Kansas City into a museum has relaunched their website and revealed their plans for the building. Museum and classrooms on the top floor and work-space for digital media start-ups taking up part of the lower floor.
http://thankyouwaltdisney.org/
They're hoping to start the renovation work in 2018.
http://thankyouwaltdisney.org/
They're hoping to start the renovation work in 2018.
PhotoDave219
Well-Known Member
They've had seasonal prices for years.
GoofGoof
Premium Member
Going private worked wonders for Sea World
Nubs70
Well-Known Member
And how did going private lead to the state the park finds itself today?Going private worked wonders for Sea World
Was it because SeaWorld did not have to focus on ever increasing EBITDA. Did they not embrace financial engineering soon enough? Did they have limited IP?
GoofGoof
Premium Member
Blackstone bought Sea World, cut costs and cleaned some things up then IPO'd the company for a nice profit. Their only mistake was not selling all of it before that documentary came out
My only point is that going private doesn't necessarily mean it would be bought by someone who is looking out for the best long term interest of the parks. Usually the blueprint is buy low, cut costs way back and then sell while the profits remain high. A private equity firm will be looking into the best way to maximize their return when they flip the business and they will have huge debt to service so there may not be a lot of cash left over for growth. The grass is not always greener.
ford91exploder
Resident Curmudgeon
Blackstone bought Sea World, cut costs and cleaned some things up then IPO'd the company for a nice profit. Their only mistake was not selling all of it before that documentary came out
My only point is that going private doesn't necessarily mean it would be bought by someone who is looking out for the best long term interest of the parks. Usually the blueprint is buy low, cut costs way back and then sell while the profits remain high. A private equity firm will be looking into the best way to maximize their return when they flip the business and they will have huge debt to service so there may not be a lot of cash left over for growth. The grass is not always greener.
Usually the grass in those cases is brown and trampled, Private Equity != Taking company private
lazyboy97o
Well-Known Member
Nobody would consider Disney buying Pixar as Pixar going private. The Blackstone Group is publicly traded. Many problems started because Anheuser-Busch had no interest in their theme parks making money and rather freely provided basic operating resources like payroll, legal, IT, etc.Blackstone bought Sea World, cut costs and cleaned some things up then IPO'd the company for a nice profit. Their only mistake was not selling all of it before that documentary came out
My only point is that going private doesn't necessarily mean it would be bought by someone who is looking out for the best long term interest of the parks. Usually the blueprint is buy low, cut costs way back and then sell while the profits remain high. A private equity firm will be looking into the best way to maximize their return when they flip the business and they will have huge debt to service so there may not be a lot of cash left over for growth. The grass is not always greener.
GoofGoof
Premium Member
Totally different than Disney buying Pixar. Public or not Blackstone is still primarily a private equity firm specializing in leveraged buyouts. The intent of buying Sea World was always to flip it not continue to manage it indefinitely. I do remember a lot of fans were unhappy with InBev and how they were neglecting the parks. The hope was Blackstone would right the ship, but within a year they announced layoffs and other cost cutting. Eventually Sea World did turn around financially and Blackstone made a nice profit when they sold.
If a person truly wanted to take Disney parks private and manage them they would probably need to borrow at least $10B to get it done. If Sea World went for $3B almost a decade ago that might actually be a low number. Even if you could find banks to lend you that much money (not easy in the current market) you would need to spend over a billion a year on interest alone. The parks throw off a lot of free cash flow now for Disney, but if there is a recession or drop in tourism that debt load could be crushing. Now they have Disney's balance sheet to fall back on if there is a temporary dip.
Andrew C
You know what's funny?
Blackstone did something with Hilton a few years back. Bought them, held them for a while (while changes within Hilton occurred of course), then cashed out a few years later when they took them public again. Although I think Blackstone still owns a majority interest.