Originally Posted By HongKongDisneyLand According to various sources, these are the latest...(rumors?)....: A Mainland Chinese Company and Disney have set up a Joint-venture for the Theme Park project in Shanghai. Disney owns 51% and the Chinese Co. owns 49%. Agreement hasn't been reached yet between Disney and Mainland Chinese Company (or the Chinese Government; or they need to get approval from the Chinese Government). But Disney would be providing the capital, technical expertise and goodwill, whereas the Shanghai based company will be providing the piece of land. Construction might start in 2008. Disney Shanghai Park might be open in 2012. 1st year annual attendance : 7million. Shanghai Government might also need to build an extra train station
Originally Posted By Captainess sure hope it has an overflow area for when Chinese New Year comes around
Originally Posted By gardabble All I say is by the time Shanghai gets its park up running . Hopefully, its a full day magic kingdom. Hong Kong Disney should have a full-day magic kingdom plus it should have its 2nd park and its own Downtown Disney by then.
Originally Posted By leemac Well it isn't a joint venture if Disney own 51%!! I know the Company is pushing for additional access to distribution in China and I think they will hold out for that access before agreeing to a theme park. I'm sure they want it to happen but will be looking for a better deal than just building a 51%-owned park. I'd also be astonished if they put up all the capital investment and only got 51%. They squeezed HKSAR for a much better deal.
Originally Posted By leemac From an accounting POV JVs are shared ownership, so 50:50 if two partners, 25:25:25:25 if four. Also it is difficult to account for it as a JV if only 1 partner puts up capital. Many companies try to classify deals as JVs as you only assume your percentage of assets and liabilities rather than full consolidation which is usually the case if you own 50% + 1 share or more. There is a difference between claiming it is a JV and it actually being one.
