[Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

[Dagobert]

Hemmm, first of all sorry for my English, I'm Italian and do not write in English often...
Let me say... Disneyland Paris is not an economical failure despite what they want us to believe. I try to explain myself: DLP has a big debt but..with who? WDC and french banks, obviously, but a big part of debt with WDC is due to the buying of new rides from WDC itself (so they do a debt with the controlling company) ad repaid from all the royalties... the other big part is with banks that are controlled by the french state who receive a lot of taxes for EVERY buying and selling inside the resort (from plush to coffe) and from salary of every worker of DLP.
So every money spent in what looks like a blackhole, just come back from royalities, taxes, economy growth etc etc. That's why DLP is still alive . If WDC buys DLP, a big part of it's debt will desappear, the reason is that DLP has a debt with WDS itself... like a mother who lend some money to his child to buy a dress which she must buy in every case.. just to give him the feeling to be a "big boy" .

Andrea

I agree with nearly everything, except for the banks. They are not controlled by the banks, despite getting financial help from the French government during the economic crisis. But that doesn't mean they are controlled by the government. And here lies some danger. The banks are having troubles currently and so they might get the money they lended ED SCA to refinance their debts.

[rob-bttf]

This would be good news I imagine, and this actually gets me pretty excited for the future.
Of course, it is only a maybe for now - but look at the share prices...
the amount they have gone up in the last couple of days, this must be a fairly substantial rumour.

We can only hope.

[TimmyTimmyTimmy]

Even CNN flashed the news constantly over and over.

DLP´s big failure has been a well known fact.

[darkamor]

The Walt Disney Co currently owns 39.8% of this French Business (which is exactly what Disneyland Paris is), opened in 1992 ... this European Resort comprises of Two Theme Parks (Disneyland Park, Walt Disney Studios Park) and Seven Hotels (Disneyland Hotel Paris, Disney's Hotel New York, Disney's Newport Bay Club, Disney's Sequoia Lodge, Disney's Hotel Cheyenne, Disney's Hotel Santa Fe, Disney's Davy Crockett Ranch) housing 5,800 guests. A Disney Village (on par with Downtown Disney), as well as Golf Disneyland nearby compliment the Disney Paris Resort ...

In 2002 (10 years after Disneyland Paris opened), Euro Disney SCA and the Walt Disney Co announced annual profits for Disneyland Paris, but this has been the last time profits were posted for this Walt Disney Theme Park. Each year since then (10 years in a row) a net loss has been posted. Back in 2005, the Walt Disney Co agreed to write off all debts to the Walt Disney Co made by Euro Disney SCA (unfortunately, since 2007, this Walt Disney Theme Park has approx. $2 billion (US Dollars) in debts). On the plus side? Disneyland Paris Resort is the most visited attraction in Europe (receiving more visitors then the Louvre and the Eiffel Tower combined). Its next obstacle? By 2017, Euro Disney SCA (under the terms specified in its contract with the French Government) is required to complete construction of further Hotel space (bringing the total of rooms available to 18,200); but do you see this happening with each year posting debts vs profits?


Other Factors -

French Intellectuals have been critics of Disneyland Paris from day one (they consider an American Theme Park to be equivalent to "cultural imperialism", they were not willing to accept that a Euro Disney would encourage within France an American type of consumerism). When a % of a population does not want your Theme Park in their Country? There's going to be issues that never go away (even if said Theme Park provides jobs and / or brings tourism francs into your Country). I'm sure most of us are aware that former Euro Disney SCA chairman Robert Fitzpatrick had his work cut out for him in getting this project green lit without further incident, but here's how you truly piss off potential French backers / employees -

1) Walt Disney Co's American Management requiring English be spoken at all meetings (when they could've all taken a course in the French Language and / or had interpreters available)

2) Walt Disney Co's American Management insisting on an "appearance code" involving regulations and limitations for the use of makeup, facial hair, tattoos, jewelry, etc (the last organization you want to piss off is the French Labour Unions, who will site the law regarding restricting individual or collective liberties under French law)


Bad Publicity -


If a Walt Disney Theme Park exists outside of North America, how do you manage the "image" of said Theme Park? (very tactfully) Are "appearance and product identification" expected from the Walt Disney Co? (Yes, but there's a limit to what you can enforce under French law). You could say this form of negotiation is used for every single Walt Disney Theme Park built outside of North America. There's been a lingering "negative image" since Disneyland Paris opened (1992) when reports that approx. 25% of Euro Disney's workforce (3,000 employees) were quitting their jobs due to unacceptable working conditions. During that same year, the park's attendance wasn't meeting expectations (these reports have fluctuated over the years fluctuate due to recessions and increased unemployment - which currently France is having to deal with like every Nation is currently facing). In fact? Disneyland Paris wasn't profitable until 1995 and remain profitable until 2002 - but this only occurred due to some questionable financing -

1) creditor banks bought $500 million (US Dollars) in Euro Disney shares, forgave 18 months of interest and deferred payments until 1998

2) the Walt Disney Co had to schill out $750 million (US Dollar) into Euro Disney as well as accept a five year suspension of royalty payments that couldn't be collecting on until the year 2000)

3) the biggest financial maneuver involved Saudi Price Al-Waleed Bin Tala Bin Abdulaziz Saud cutting a deal that forced the Walt Disney Co to purchase 51% into a new $1.1 Billion (US Dollars) share issue (shared with existing shareholders at below-market rates), with the Saudi Price purchasing all remaining existing shareholders (24.5%).

4) Disneyland Paris and its assets required a name change (in order to overcome the negative publicity involving "Euro Disney"). As much as I hate Michael Eisner, I have to agree with his statement from 2002 ("As Americans, the word ‘Euro’ is believed to mean glamorous or exciting. For Europeans it turned out to be a term they associated with business, currency, and commerce. Renaming the park ‘Disneyland Paris’ was a way of identifying it with one of the most romantic and exciting cities in the world". — Michael Eisner).

I guess as a Disney Theme Park fans, we all have our favorites & criticisms about our favored Walt Disney Theme Parks. Disneyland Paris has suffered via what I posted above, but it could succeed under the right management, as well as a better (new) negotiated deal with the French Government. If the Walt Disney Co wants to maintain an "image and product identification", its going to have to accept that receiving royalty payments isn't working for Disneyland Paris - its going to have to purchase (probably with a new partnership with wealthy investors) Disneyland Paris carefully under French law.

C J

[Fultimate]

This is probably the reason why the Walt Disney Company don't announce a buyout for now. Disney want the share price to recover its normal level. Let's wait 2 or 3 more days (this is just my opinion).

boursorama.com

[nanarobin]

We shared a drive to the airport (LAX) 12-13 years ago with a top Disney Imagineering castmember. He told us back then that most "higher ups" wanted this park to be built in a warm, sunny spot in Spain but Eisner pushed for Paris. The French don't like us, they had a very difficult time trying to find anyone French to work there and most of the people who attend are from other parts of Europe. It's not a warm, sunny place like other locations that parks are at, from what this castmember told us.

[Martin VV]

Paris was the right choice and there are several reasons for that. One of the main reasons was that it is very easy to get there from nearly every city in Central Europe. It's a two hours train ride from London, nearly every German city has a high speed connection to Paris and highways also connect very well with Paris. And don't forget Paris is the most visited city in Europe.

Your point about germany is intresting. because you are wrong, check out the financial results, there aren't guests from germany(3%) a high speed train connection isn't perfect I check the train connection from Berlin and Munich to Paris on it was pretty slow and expensive most of them with 2 transfers :o(.


I belive that DLRP shoud improve this number somehow maybe the germands dont like the frane because of WWII, or they don't like dirty disneyland toilets, who know .......

[Dagobert]

Your point about germany is intresting. because you are wrong, check out the financial results, there aren't guests from germany(3%) a high speed train connection isn't perfect I check the train connection from Berlin and Munich to Paris on it was pretty slow and expensive most of them with 2 transfers :o(.


I belive that DLRP shoud improve this number somehow maybe the germands dont like the frane because of WWII, or they don't like dirty disneyland toilets, who know .......

The numbers of German visitors were higher during the 90s. The main reason for me is that there is hardly any advertising of DLRP in Germany and other German speaking countries. If Disney would advertise the resort, I'm sure there would also be more guests. Another reason could be the German themeparks. All of them are doing a good job and are sometimes even better than DLRP, especially in terms of quality when it comes to the hotels. I don't know what Disney is thinking, but their hotels are far behind the standard that is found in German speaking countries.

I guess there have been some issues between Germany and France after WWII, but honestly I don't think that a family with kids cares about that anymore. They just want to spend a nice holiday and that's it. DLRP is just too expensive and without any special offers, I would also consider going to Europa Park, for instance, instead.

And don't get me started on the disgusting toilets at DLRP.

[TimmyTimmyTimmy]

The toilets in Disneyland Paris are world famous for being some of the worst in Europe... anyone knows that.

Anyway... let me once again tell you all that marketing for DLP in Sweden, Denmark and Norway is as close anything gets to nothing. There was something in Denmark for the New Generation thing... but other than that I haven´t seen anything for years.

The idiots that run the DLP show do not seme to understand that marketing is almost more important than the product itself. Why have a great park when nobody knows it´s there.

DLP has always been a big shame for Disney. Like a coffe spot on table cloth.

[Hathaway Browne]

I'm thankful I've never had to use any of the toilets in the parks then.

Anyway, as for advertising, I wonder if Disney did take control what they would do with the promotions. I guess they may increase advertising a little, but once they added something - lets use Ratatouille as an example (if they buy before it opens), I would image that they'd really push it hard. And no doubt they would look into other untapped markets that DLRP doesn't normally advertise much, partially because they could increase the budget.

[Martin VV]

The toilets in Disneyland Paris are world famous for being some of the worst in Europe... anyone knows that.

Anyway... let me once again tell you all that marketing for DLP in Sweden, Denmark and Norway is as close anything gets to nothing. There was something in Denmark for the New Generation thing... but other than that I haven´t seen anything for years.

The idiots that run the DLP show do not seme to understand that marketing is almost more important than the product itself. Why have a great park when nobody knows it´s there.

DLP has always been a big shame for Disney. Like a coffe spot on table cloth.

I totaly agreeee with you they are IDIOTS and UNTOUCHED MARKETS are the key to DLRP rosperity, somebody should tell them :o) i bought shares for 3.60 and i'd like see them on 20 next year :o)

But some changes in park are necessary. (they dont need a new ride )
1) toilets .. it's really so difficult to keep them clean??
2) restaurants it's pretty complicated to buy same food, from my point of view price of food is fine when you consider amount you get. Only drinks are too expensive.

[WDW1971]

Disneyland Paris needs to be run as the same standards that WDW and Disneyland are.

Disneyland Paris needs to not have too many similar rides to WDW because so many Europeans could easily go to Florida as Paris.

Disneyland Paris needs to work on making it comfortable for peoples of all languages and cultures. Why would someone who speaks German want to go to a place where most everything is in French or English. If it is a multinational place, they need to do more with having peoples own languages. No one wants to go and hear French all day in rides and attractions if they know nothing of French.

[Xedex]

^I think people are to harsh on the French language! (I'm Dutch and know just a little bit French) EVERY ONE wants to go to Tokyo Disneyland/SEA do all those people speak Japanese, heck no! I would find it very annoying if all the announcements in Disney Paris will have to be made like 5 times so they can include all the major languages! (the old Cinema parade had announcements in a lot different languages, it sounded really stupid)

Disney is American so therefor I think English should be used as language in the park. The park IS build in France so they must use it too IMHO.

So I say, stick with BOTH French and English.

~Dex

(Yes Germany is big, but so is Spain and Italy. Where do you stop in using a language from a big land close to the resort because it delivered many tourists?)

(I'm just talking about Rides/Names/Announcements. Maps and Cast member will have to talk in more languages)

[croboy82]

When I was in Disneyland Paris last year there were anouncements in french, english, spanish and german for some things like the parade

I think marketing and the 2nd bad park are the biggest problems.

[Baby-T]

Here we are again, the Marketing...
I realy don´t wanna know how many Millions of Euros they lost just because
at DLP are working just Idiots in the Marketing department...

I realy can just speak for Germany. Lets go back to the time Toon Studios and Tower of Terror opend. This would have been the big chance to do great advertisment, to bring back the germans to the Parks, but they didn´t. Till today no Advertisment is done for the Parks in Germany.
The funny thing is, the Peeps from Germany love to do they´re vacations, and they spend a lot on it, what a missed opportunity.

At the moment Germany has the lowest Workless people, so a lot of peeps have the money to visit DLP but with no advertisment, why should they go there!? Its again a missed Oportunity to get the Germany Money into the Parks... Stupid Idiots, if i see a country with peeps who love to spend money on vacations i try to get them all and they´re good money.! but DLP isn´t in need of it i think...