Friday, August 24, 2012

Breaking News: Walt Disney Company Considers Buyout Disneyland Paris



If this is confirmed it might be the big news that all DLP fans are waiting for: According to TIME magazine the Walt Disney Company is considering a possible buyout of Disneyland Paris. Currently the WDC owns "only" 40% of Euro Disney, and among "the remaining shares 10% is owned by Saudi Prince al-Waleed bin Talal, and the rest is held by individual and institutional investors". Sources close to the WDC told TIME that "serious discussions have been taking place internally about buying out the stock it doesn’t currently own".

Always according to TIME "Acquiring the entire French company would be the first step in a comprehensive turnaround strategy that would enable Disney to benefit far more substantially from the popular success of the park". "Disney said in a statement that “we’re encouraged by the resort’s continued financial resilience and remain deeply committed to the future growth and long-term success of this invaluable asset to the Walt Disney Co.” ...but didn’t made any official comment on the buyout possibility "which TIME’s sources say have been under discussion for some time. Based on Euro Disney’s stock price, which has long been depressed, the market value of the 23.4 million shares of the French company that Disney doesn’t own is about $120 million. However, Disney would certainly have to pay a premium over the market price".

TIME note that "It’s not certain that Disney will decide to make a bid for the company, but the timing for such a move is favorable, since Disneyland Paris is currently on track to pay down about 500 million euros in debt over the next six years, or about one quarter of the remainder. This would put it on a more sustainable path to profitability. Thanks to management’s tight financial controls and higher spending per visitor, the resort is now finally making an operating profit and its cash flow is healthier".

And what does all this means for DLP fans? Well, it means that "a buyout would be followed by increased investment in the resort aimed at paying down the debt more quickly and increasing the number of attractions".

I've been saying since a long time that DLP needed a "Marshall plan" and may be it's finally coming now, although in a different way than i had expected. If the WDC really do this buyout it might resolve not only DLP debt problem but also, as they will be totally in charge of DLP parks just like they are at Disneyland Anaheim or WDW, that they will try to resolve DLP problem for once and for all and the example of California Adventure just prove recently that when they want to do it, they can do it, so you can expect new attractions for sure.

Let's cross our fingers that the news will be confirmed, but considering that it's coming from TIME, a reliable magazine, and that "there is never smoke without fire" this one might be the one you were all waiting for.

Text excerpts coming from TIME full article HERE

13 comments:

spajadigit said...

That is great news indeed! Thanks so much for the breaking info!

Anonymous said...

croisons les doigts...si ca se fait, Disney ne sera plus obligé de donner ses résultats et surtout, le cout des nouvelles attractions ne sera plus sur-facturé par Disney US comme c le cas aujourd'hui ! (le Space Mountain a l'epoque avait couté plus cher que la totalité du parc Astérix!) et donc oui, on peut esperer de nouvelles attractions dans les deux parcs et un relaunch des WDS

David Neubauer said...

the stock market also registered it: +22% within one day :) (the share went up sharply from 4.2 to 5.15)

Anonymous said...

This would be AWESOME! It will be a proper Disney resort, I really hope it happens and soon!

Dominique Mol said...

Oh my.. that would be great news..
Hopefully this will come true and will also mean some really necessary changes in quality management will follow. Since my last visit this summer it was pretty clear how they are saving money; as far as I can see.
Many were complaining about the few choices and steep prices in fast-food and merchandise, crazy prices in the table restaurants (5,50 for a coke).

Plus that the park in summertime really is reaching it's capacity and expansion is needed.

I wish them all the best and hope the WDC will step in and take control.

Anonymous said...

WOW!!!!!!

Robert /Cologne said...

Hope this happens.
Look what happened to DCA and the fantasyland expansion .
Maybe disney could save DLP and maybe a Carsland could also be on the way .

Anonymous said...

While they have the wallet out, can they also buy out the rest of Hong Kong Disneyland Resort's stocks?

Anonymous said...

This has to happen! When you wish upon a star...

Anonymous said...

Hopefully they get rid of this malfunctional French management and raise the resort to its full potential. After all, Euro Disney was modeled after Walt Disney World originally.

Dream said...

Si ça se fait j'espère que le management va changer et que les CM qui s'en fichent de leur boulot et de l'esprit Disney vont se faire envoyer dehors et récompenser les gens qui aiment leur boulot.
La comparaison est choquante avec les CM de Tokyo ou de Californie.

Marco Antonio Garcia said...

This is the best news for DLP since the opening of the Resort!!!

I've been saying for a long time that the only solution for the French Resort is the Walt Disney Co. put a lot of money, as capital, in it.

I really hope that this happens and soon!

Xavier said...

I'm always surprised by the unbalanced comments in this kind of subject. Not to mention a lack of basic knowledge.

"malfunctional Frenchmal management"?
DLP is run by a direct subsidiary of TWDC...

"et surtout, le cout des nouvelles attractions ne sera plus sur-facturé par Disney US"
That probably wouldn't change. DLP is over charged for everything by TWDC. (the latest coat of paint of BBWWS entrance send several thousand of $ toward WDI, sorry WDI is dead, toward DDC. The French resort would remain another cash cow for its mother company.

"crazy prices in the table restaurants (5,50 for a coke)" Disneyland in California charge $87 for a 1 day ticket. Hopper make it a whooping $125!

"This has to happen! When you wish upon a star..." TWDC didn't shy from disfiguring Main Street of the MK and axe the baber shop to make a few more bucks. And in the over successfull WDW, they do as little as they can. For a small attraction upgrade they have to built a new hotel or a new DVC wing.

The TWDC has almost complete power over DLP. Only the banks & investment funds that owns the debt can restrain its power. So this rumoured move is not really for power but more probably for money. DLP is about to pay off a large chunk of its debt and will become much more profitable in the years to come. And TWDC want as much of it as it is possible...

SO what can we expect? As much as I want to see the return of the Streetmosphers or the Barber Shop quartet. I don't have high hope.
All the frontierland's "saloons" run by TWDC lost their show & revue.
Maybe a more reliable & regular development of new rides?
But do will we have to lose the barber shop, Flower street & Liberty court to sell a few more merchandising ? Time will tell...