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

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

    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.

  • #2
    Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

    Great news!

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    • #3
      Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

      What would happen to the debts? TWDC would only buy the shares and I guess they are starting with the ones owned by Prince Alwaleed, banks and other institutions. The ones from shareholders like us aren't a problem, because they are a very small part. Minority shareholders can be forced by law to accept an offer. Just because TWDC would own the resort, doesn't mean the future will be better. They still have to repay the debts and they would still not make enough money. Only the ownership is changed, but not the financial situation. TWDC already has the last word in decisions and due to the debts, banks would still have to agree on new projects. Although I think it would be a good idea, I can't see any advantage. Maybe investments from TWDC would be easier, since they don't have to use credit lines for that. So let's wait and see.

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      • #4
        Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

        Very interesting. I have always been under the impression that part of the reason for the creation of Euro Disney SCA was French laws that limit foreign ownership.

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        • #5
          Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

          Originally posted by lazyboy97O View Post
          Very interesting. I have always been under the impression that part of the reason for the creation of Euro Disney SCA was French laws that limit foreign ownership.
          Me too, but maybe that changed during the last years. Since TWDC is an American company, the EU law doesn't apply here.

          Maybe nothing in that article is true and it's not going to happen at all.

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          • #6
            Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

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            • #7
              Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

              In 2005 a German or Swiss company wanted to take over ED SCA and it turned out be a big failure. Maybe it's the same this time.

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              • #8
                Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                Originally posted by Dagobert View Post
                In 2005 a German or Swiss company wanted to take over ED SCA and it turned out be a big failure. Maybe it's the same this time.
                It was impossible because Euro Disney is an SCA.

                The title of this topic is "Walt Disney Company considers buying Disneyland Paris" and not "Walt Disney Company buys Disneyland Paris".
                Last edited by Fultimate; 08-24-2012, 07:51 AM.

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                • #9
                  Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                  Originally posted by Fultimate View Post
                  It was impossible because Euro Disney is an SCA.

                  Nothing is official for now. That why they've written "considers".
                  Can you explain that for me please? What exactly does SCA mean?

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                  • #10
                    Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                    Originally posted by Dagobert View Post
                    Can you explain that for me please? What exactly does SCA mean?
                    18.48%

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                    • #11
                      Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                      im so confused
                      Take a look at some of my models I make at kolbykonnection.com

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                      • #12
                        Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                        Originally posted by Dagobert View Post
                        Can you explain that for me please? What exactly does SCA mean?
                        It's a peculiar type of French corporation and the biggest thing it does is allow The Walt Disney Company to control Euro Disney SCA despite not owning a majority share.

                        As far as the debt, I think The Walt Disney Company would just have to do what they tried to avoid and pay off the debts. Investments into the Resort could also just be funded directly, instead of being financed and approved by the banks as is the current case.

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                        • #13
                          Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                          Originally posted by lazyboy97O View Post
                          It's a peculiar type of French corporation and the biggest thing it does is allow The Walt Disney Company to control Euro Disney SCA despite not owning a majority share.

                          As far as the debt, I think The Walt Disney Company would just have to do what they tried to avoid and pay off the debts. Investments into the Resort could also just be funded directly, instead of being financed and approved by the banks as is the current case.
                          That's why I have troubles to believe that story. I hope it's true, but ED SCA still has a debt of over 2 billion Euros. TWDC just spent a billion on DCA and now they are financing a multi billion park in China. For it's a surprise that they even consider the buyout, because that's another 500mio investment.

                          ---------- Post added 08-24-2012 at 05:30 PM ----------

                          Does someone know why TWDC didn't try to get full ownership when they built the resort?

                          Didn't the French Government demand that TWDC only holds a minority stake? I guess it has something to do with the land rights and all the financial help that the Fench Government provided.

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                          • #14
                            Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                            I don't think The Walt Disney Company would pay off all of the debts right away. The direct ownership would just open up the ability for more direct investment. Such a move would also negate the debt and royalties owed to The Walt Disney Company.

                            As I said, my understanding is that French laws played a part in the ownership structure. The other was management wanting to have their cake and eat it too. They wanted to control another Resort and reap its financial rewards, but not actually pay the massive costs involved.

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                            • #15
                              Re: [Breaking News] Walt Disney Co. Considers Buyout of Struggling Disneyland Paris

                              ohhh... hoping for the Premier pass to be extended to Disneyland Paris

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