WD Company buyout of DLP

britincgn · August 24, 2012, 01:36:54 PM

http://business.time.com/2012/08/24/exc ... and-paris/

dagobert · August 24, 2012, 01:46:41 PM

I guess that would be a good idea, but isn't there a French law that prohibits foreign majority ownership in French companies?

dagobert · August 24, 2012, 02:01:43 PM

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.

DopeyDad · August 24, 2012, 02:11:40 PM

It's encouraging that they are even considering it I think. Operating profits and a solid play to pay down debts could mean TWDC see owning the park as a way to finally get the payback that would make investment worthwhile. It could become a real turning point. I'm probably wrong, but I think the French law issue relates to debt rather than ownership, is it something to do with TWDC can't waive the debt to another company?

ed-uk · August 24, 2012, 02:34:26 PM

I'd miss my shareholders club membership if EuroDisney went, and I wouldn't feel apart of DLP in the same way, but that's a small mater in the bigger picture I suppose. And what would we ended getting for the shares, possibly not much?

|Q| · August 24, 2012, 02:37:11 PM

Interesting. I'm trying to summon a wise Spirit on another plane.

Q

alternativerock123 · August 24, 2012, 04:23:03 PM

The possible advantages is that the expansion of the park will be done BY the WD company, not from the "budget".
Paris wouldn't have to buy things such as costumes, floats from other parks and other royalties for music and stuff.

Honestly I think it's good news!
But bad for those with shares. :?

dagobert · August 24, 2012, 04:33:08 PM

Quote from: "alternativerock123"The possible advantages is that the expansion of the park will be done BY the WD company, not from the "budget".
Paris wouldn't have to buy things such as costumes, floats from other parks and other royalties for music and stuff.

I thought that too, but when TWDC gains complete ownership, they also get the debts. Honestly I doubt that the banks would be fine with the fact that Disney is investing in the resort, while Disney isn't repaying the debts. There are still 2 billion Euros to repay and I'm sure TWDC will not do that. They just spent a billon on DCA and now they are heavily investing in Shanghai. I'm still surprised that they will use 500mio to buy out ED SCA. So I guess TWDC would still repay the debts with the money DLP makes.

Let's hope it's true, just because for a safer future for the resort.

|Q| · August 24, 2012, 05:05:05 PM

Quote from: "alternativerock123"But bad for those with shares. :?

Why? If there's really a buyout the shares are goin to increase in value. Actually, it's possible that just talking about it can make them rise.

edit: user fultimate on micechat posted this

Quote

So, the shares are already reactiong to the [strike:3ev3r9l3]news[/strike:3ev3r9l3] rumour.

Q

isani · August 24, 2012, 05:20:31 PM

Could somebody explain to me why Disney didn't originally get full ownership? I understand that Disney had good experiences with this kind of a model in Tokyo, but I'm sketchy on the details.

ed-uk · August 24, 2012, 05:30:49 PM

Quote from: isaniCould somebody explain to me why Disney didn't originally get full ownership? I understand that Disney had good experiences with this kind of a model in Tokyo, but I'm sketchy on the details.[/quot

Disney didn't want full ownership. WDC set up EuroDisney in which it is a major shareholder with the agreement of the French goverment to run the resort, and sold shares in Europe to help finance the project.
In Tokyo the resort is owned by the OLC who pay Disney management fees and royalties. Originaly Disney did own shares in OLC, but I believe that they had to sell them in the early 1980s to help fight off a hostille take over bid.

alternativerock123 · August 24, 2012, 06:05:12 PM

Quote from: "|Q|"
Quote from: "alternativerock123"But bad for those with shares. :?

Why? If there's really a buyout the shares are goin to increase in value. Actually, it's possible that just talking about it can make them rise.

edit: user fultimate on micechat posted this

Quote

So, the shares are already reactiong to the [strike:3960hhyi]news[/strike:3960hhyi] rumour.

Q

Oh... that's good then. I thought I saw people say that the shares would go. Not sure why, but I must have misread the info.

But still, that's better. lol

Josh · August 24, 2012, 06:08:22 PM

This is the best news we've had in a while. We'd be just like DL and WDW, run by the WD Parks and Resorts division. No one would be able to get in the way of what TWDC wants (which would mostly be a good thing). No one would be able to tell the management to concentrate on cheap little additions each year instead of expanding the resort.

Quote from: "dagobert"I thought that too, but when TWDC gains complete ownership, they also get the debts. Honestly I doubt that the banks would be fine with the fact that Disney is investing in the resort, while Disney isn't repaying the debts. There are still 2 billion Euros to repay and I'm sure TWDC will not do that. They just spent a billon on DCA and now they are heavily investing in Shanghai. I'm still surprised that they will use 500mio to buy out ED SCA. So I guess TWDC would still repay the debts with the money DLP makes.

But I thought most of the debts were being paid to TWDC. So wouldn't they just... go away? Or are most of the debts to third-parties?

|Q| · August 24, 2012, 06:11:29 PM

Quote from: "Josh"This is the best news we've had in a while. We'd be just like DL and WDW, run by the WD Parks and Resorts division. No one would be able to get in the way of what TWDC wants (which would mostly be a good thing). No one would be able to tell the management to concentrate on cheap little additions each year instead of expanding the resort.

I don't think thay're goin to acquire the totality of it, not sure that is even possible. Just a large chunk.

Quote from: "Josh"But I thought most of the debts were being paid to TWDC. So wouldn't they just... go away? Or are most of the debts to third-parties?

The debts are with banks.

Q

ed-uk · August 24, 2012, 06:28:46 PM

The debts are with banks and hedge funds, i read somewhere that 50 banks are involved. We shouldn't get carried away here because it might never happen and WDC wont buy the company out unless it's to their great advantage, I should think. That's if it's really on the table. if the shares go up on the rumour, so much the better.