Originally Posted By GOB Disney sold a large stake in its American parks to an outside group of investors, sort of like OLC at Tokyo Disneyland? I don't know if this is even possible, and hopefully some of the more financially-minded folks on here could shed some light on this, but the thought occurred to me that perhaps the parks would be in a better shape if Disney wasn't in complete control. For example, I believe contract stipulations by Disney require OLC to keep upkeep at the level it is now, or else OLC would be violating the terms of the agreement. Thoughts?
Originally Posted By EPCOT Explorer It is my greatest and sincerest Disney wish for exactly that to happen.
Originally Posted By MousDad Disney is not a creative company anymore, but rather a massive holding company for other creative entities. All creative Disney enterprises are token guestures that only occasionally make big bucks for the Mouse. It's obvious that they no longer have the desire to be the creative leaders they historically were. So I agree with EE - let someone else do it who'll do it better.
Originally Posted By EPCOT Explorer >>>All creative Disney enterprises are token guestures that only occasionally make big bucks for the Mouse. It's obvious that they no longer have the desire to be the creative leaders they historically were.<<< Well, that's true for the most part. However, if WDI and Parks were given the same reign as, say movies? Perhaps we'd we some more original things. Synergy, and sequels, too, sure, but I would like to believe we'd see some more quality and originality. Then again, that's how OLC runs their parks. Characters, references, but underlying originality and quality.
Originally Posted By SuperDry <<< However, if WDI and Parks were given the same reign as, say movies? >>> The problem is definitely not WDI. Each resort's management team decides what WDI is going to put into their parks. If you like the way OLC does things, consider that they don't have their own Imagineering department - they just "buy" things from the same WDI that designs everything else.
Originally Posted By leemac <<Each resort's management team decides what WDI is going to put into their parks.>> That isn't 100% correct. Resort management is effectively an operating team i.e. focused on the "now" and short term. They have input into what they feel is best for their resort but ultimately the decision is made by WDP&R management under Tom.
Originally Posted By leemac <<However, if WDI and Parks were given the same reign as, say movies? >> EE I'm not sure I understand what you are suggestion here. Are you saying that you think that Studio Entertainment has a freer reign to be creative than WDP&R? If that is the case then I can't agree with you at all. The Studios is only allowed to develop product that is Disney-branded and can feed other business units. Hence why we have POTC 4, Magic Kingdom and Jungle Cruise upcoming and remakes like TRON and Haunted Mansion on the slate. WDP&R and Studio Entertainment are both struggling under the Disney Difference concept that Iger is pushing.
Originally Posted By leemac <<Disney sold a large stake in its American parks to an outside group of investors, sort of like OLC at Tokyo Disneyland? >> It is entirely possible that WDP&R could be hived off. Unfortunately it is the second largest business unit at the moment after Media Networks and so it would have a huge impact on the bottom line if such a transaction was conducted. Unless you are a private equity firm you would be foolish to invest in theme parks. They are hugely capital-intensive and consume huge operating costs just to open the door. They do throw off cash though which is why you have Blackstone invested in Universal Orlando. The problem with PE though is that they typically only think in 5-year windows. They load up the acquired business with debt, service that debt from positive cashflow and then flip the business for a profit 5 years later. The recent credit crisis has made that a little harder but they are still looking for a coherent exit strategy. Blackstone will be looking for an exit in the medium term - probably either to another PE firm or an IPO. There just aren't any trade buyers out there.
Originally Posted By leemac And I should add that OLC operate in a very unique environment. Japan has had low interest rates for a very long time - and most businesses are highly geared. So it was easy for OLC to go and raise billions of dollars for their expansion plans in the late nineties for Ikspiari and TDS. I don't believe there is another market in the world like Japan. It was a perfect storm when OLC lucked upon the idea of an Oriental Disneyland to develop on that landfill. Everything works in their favor from the Japanese love for kawaii and American culture, the Japanese vacation patterns (still largely focused on domestic travel), school parties going on daytrips to the parks and the huge metropolis of Tokyo at your doorstep. The only hiccup in the future will be the rapidly aging population - TDR will need to start thinking properly about how best to deal with that.
Originally Posted By EPCOT Explorer >>>The problem is definitely not WDI. Each resort's management team decides what WDI is going to put into their parks. If you like the way OLC does things, consider that they don't have their own Imagineering department - they just "buy" things from the same WDI that designs everything else.<<< Agreed. Was referring to fact that WDI is made to build all these unoriginal attractions, and not given the creative reign that we would all like to see. (Of course, that's expensive...)
Originally Posted By Socrates How about if Disney sold the parks to Saul Steinberg? Socrates "The unexamined life is not worth living."
