Originally Posted by Mr. Eggz
For many years this sort of thing was done all the time. WDW was built with DL money and both WDW and DL supported the studio through the 70s and early 80s, but after Eisner and Wells came in in '84 Disney was broken down into business units and each unit had to prove their worth independently. The theory goes...if the business is a worthwile venture it should make the money necessary for re-investment in that same business. Most large businesses are run this way today (not that that makes it right). All profits are turned over to corporate. It is then up to corporate to decide where profits are re-invested (or invest in new businesses, or give to the shareholders as dividens, or buy back Disney stock). The only way for DL to get profits from WDW or any other division is for corporate to give it to them after it is added to the overall pool of profit. Right now Wall Street (and Disney Co. follows the rules set by Wall Street) says theme parks are a bad investment...so Disney will not be reinvesting in the parks in a meaningful way for some thime. Expect profits to go to ABC, ESPN and International expansion. Current management will do nothing to upset Wall Street.