WD Company buyout of DLP

[ed-uk]

Thanks for posting, but i'm still sceptical about this buyout rumour in Time Magazine.  I doubt there's a marshall plan for WDS, it would be too risky just building up even more huge debts to add to the rest. It's a nice blog, and it comes with the longest wish list ever all based on one article in Time Magazine, and even in that they say the buyout isn't certain to happen, the biggest get out clause ever.  Anyway we'll see.  EuroDisney have plans for the future, too including a decision on a 3rd park by 2030, if market conditions allow, the company couldn't have signed up to that without the blessing of the WDC.
I wish DLP a great big beautiful tomorrow, too.

[ICHAPMAN]

Thanks for posting, but i'm still sceptical about this buyout rumour in the Times.

Ed - not that it makes much difference, but it wasn't the Times, it was US TIME magazine - http://business.time.com/2012/08/24/exc ... and-paris/

Regards

Iain

[ed-uk]

Thanks, I have corrected my post. I knew I hadn't read it in my Times newspaper.

[matt8594]

This could only be good news for DLP because it would suggest Disney want more control over the park.

The idea of Disney forcing DLP into bankruptcy is crazy, they would never allow their most valuable asset, their brand, to take such a massive hit.

If anything, Disney might be considering stepping in because they fear the banks will lose faith in the EuroDisney company.
I don't think taking on the debt would worry Disney too much, bear in mind they had $3.2bn in CASH at the end of the last financial year; they could buy DLP and wipe out its debts using their cash reserves alone if they chose to.

For the banks it would be good news because the debts would be serviced on time by a $90bn company, rather than risking missed or late payments.

The park wouldn't be so constrained by financial difficulties, but that doesn't mean it wouldn't have a budget, Disney wouldn't just throw money around unless they were pretty sure of a return.

Overall, for guests I think it can only be good news.

[DLRP Roundup!]

As you say it's a big if,  and I don't think it will happen. I don't think the WDC will be allowed to buyout EuroDisney. EuroDisney is part of the master agreement between the WDC and the French goverment. Not only does it run the resort, it's also responsible for developing the area, Val d' Europe and Village Nature etc.  It's hard to see why the French goverment would  be happy to hand that over to an American company in Burbank. I don't know much about the master agreement, but that's what I've learnt so far.

Completely irrelevant these days, the French government have a fragile economy, more so than the UK or Germany and risks like DLP open them up to media/public outcry's, especially when they can make a quick return by selling the park but keeping a small caveat that the jobs in France need protected as do the suppliers, thus ensuring the economic benefits of DLP are still maximised to what they can get.

DLP is worth more than the parks to the government.

[ed-uk]

As you say it's a big if,  and I don't think it will happen. I don't think the WDC will be allowed to buyout EuroDisney. EuroDisney is part of the master agreement between the WDC and the French goverment. Not only does it run the resort, it's also responsible for developing the area, Val d' Europe and Village Nature etc.  It's hard to see why the French goverment would  be happy to hand that over to an American company in Burbank. I don't know much about the master agreement, but that's what I've learnt so far.

Completely irrelevant these days, the French government have a fragile economy, more so than the UK or Germany and risks like DLP open them up to media/public outcry's, especially when they can make a quick return by selling the park but keeping a small caveat that the jobs in France need protected as do the suppliers, thus ensuring the economic benefits of DLP are still maximised to what they can get.

DLP is worth more than the parks to the government.

The French goverment can't make a quick return by selling the park, they don't own it.

[DLRP Roundup!]

They can sell their interest/investment in it though.

[ed-uk]

It's not state owned, I don't know if the French goverment own any shares, as far as I know they don't. They couldn't sell any part of EuroDisney. Shareholders at a general meeting would have to agree to that.  I think that there could be a political dimension to this.  The French goverment wanted a French company to run the resort with the agreement of the WDC, and  EuroDisney has also been responsible for developing the area with other parties, how is that irrelevant? EuroDisney make money from land  development projects like Val d Europe, which in turn have created more jobs and investment.

[Lorum]

http://http://disneyandmore.blogspot.com.es/2012/09/the-walt-disney-company-re-finance.html

[Kristof]

http://http://disneyandmore.blogspot.com.es/2012/09/the-walt-disney-company-re-finance.html

Please, don't just post links as a reply.  A few words about what you're referring to is appreciated.  :thumbs:

To discuss the refinancing of the Euro Disney debts, please use this topic:

viewtopic.php?f=3&t=14287