Disneyland Paris share price rose by around 10% yesterday as Disney announce that they will be buying back shares in 2014. Details are vague, so I don't know what that means for the parks or current shareholders.
http://uk.finance.yahoo.com/news/stocks-news-europe-euro-disney-102559374.html (http://uk.finance.yahoo.com/news/stocks-news-europe-euro-disney-102559374.html)
Just means they cost a good ton more :P
It should go down by next week a tad.
That's good news the shares have gone up. :D If i remember correctly before the world financial crisis they were trading for 11 Euros. :'(
Reading the article they still keep going on about the parent company ( Walt Disney ) simply taking over Euro Disney and all that rubbish. :P It's their own shares the Walt Disney Company are buying back not Euro Disney shares.
I thought they couldn't purchase the whole company due to the foreign ownership restrictions?
Quote from: ed-uk on September 15, 2013, 12:10:17 PM
Reading the article they still keep going on about the parent company ( Walt Disney ) simply taking over Euro Disney and all that rubbish. :P It's their own shares the Walt Disney Company are buying back not Euro Disney shares.
I don't understand that statement.
As I understand it, EuroDisney is a separate entity to Walt Disney, but Walt Disney own around 40%, the rest being owned by other banks, companies and people (including me!)
Have I got it wrong?
It's their own shares the Walt Disney Company are buying back, Walt Disney Company Shares. But they own shares in Euro Disney, Euro Disney shares. As you said Euro Disney is a separate entity, a franchise if you like. Maybe i didn't explain myself well. Apparently the Walt Disney Company has a significant cash flow due to their success, so the company plans to buy back 6-8 billion dollars of their shares, they did the same last year for a smaller amount, 4 billion dollars. Then the money goes back to its shareholders in dividends.
It's just that some people take the view, as mentioned on Yahoo Finance, that since the Walt Disney Company has all this money they could afford to buy Euro Disney, so the Euro Disney share price goes up. And that's why i said rubbish, in my opinion.
Oh, I see. I've re-read the Yahoo clippet and Walt Disney Co. are not buying up any Euro Disney shares at all. As you say, they're buying back shares in their own company in the US.
The Euro Disney shares went up because people are speculating that they will also buy those too.
Thanks for helping me understand, I think that's cleared things up.
A good time to sell your shares, ready to buy back in a few weeks time.