Disney won't buy DL Paris

[Tom Morrow]

Disney may buyout Disneyland Paris

Walt Disney Co. considers buyout of struggling Disneyland Paris Purchase of Euro Disney shares the company doesn’t already own would be first step in comprehensive turnaround strategy TIME After two decades of putting up with lackluster financial results at its European theme-park resort, Disneyland Paris, the Walt Disney Co. is considering a possible buyout of the publicly traded French company that manages the resort, Euro Disney SCA. Disney currently owns 40% of Euro Disney, and sources close to the Burbank, Calif., entertainment giant told TIME that serious discussions have been taking place internally about buying out the stock it doesn’t currently own. Of the remaining shares, 10% is owned by Saudi Prince al-Waleed bin Talal, and the rest is held by individual and institutional investors. 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. The Walt Disney Co. was supposed to receive a steady stream of royalties and management fees, but because of the resort’s poor financial performance, it has had to waive, defer or reduce these fees for most years of the resort’s existence. 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. by Peter Gumbel complete article

Submitted by Ezra

[bodhran105]

I wish I could pump a little money into the system by going. If anyone is making plans, I can fit into a suitcase...

The 20th anniversary with Disney Dreams, the new parade and music! Oh, it just makes me dream!

[TimmyII]

I loved Disneyland Paris...it was quite fun! It could use some help with the hotels aspect of it though! We stayed at the Sante Fe....it was alright, but I wouldn't recommend it. Wish I had chose the Cheyenne!

[CostaFreak]

Could this finally mean a DCA-style revamp to the Studios park?

I shall look to the psychic powers of the marvelous breadfish.

[Tom Morrow]

Disney will refinance but not buy Disneyland Paris Resort

Disney to back Euro Disney Euro Disney says rumors Disney may boost stake "unfounded" Reuters Euro Disney said parent Walt Disney Co. had agreed to extend l.332 billion euros ($1.74 million) in loans to help refinance its debt but dismissed market talk Walt Disney might boost its stake in the French theme park operator. Euro Disney shares rose sharply in recent weeks amid persistent speculation that Walt Disney planned to buy out the financially-troubled company. "These are unfounded rumors," Euro Disney Chief Executive Philippe Gas told a conference call with journalists on Tuesday. — complete article

—

Related Article:

Disney’s $1.7 Billion French Birthday Gift
Time Magazine

Submitted by Ezra