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View Full Version : Disney's Animated Investor - LA Times, 1/26/04



Darkbeer
01-25-2004, 10:50 PM
Disney's Animated Investor (http://www.latimes.com/business/la-fi-prince26jan26,1,5502689.story?coll=la-home-headlines) - Los Angeles Times, 1/26/04

Note, this is a quite long and very well written article, the QuikQuote doesn't do it justice.

QuikQuote: Today, Eisner and Alwaleed are scheduled to meet at Disney headquarters in Burbank to discuss the future of Euro Disney, among other things.
"We faced crisis No. 1. Now we have to face crisis No. 2," Alwaleed, 48, said in a recent interview at his ranch near Riyadh. "In my latest telephone call with Mr. Eisner, we agreed on one thing. This time the problems of Euro Disney will have to be resolved once and for all."

olegc
01-26-2004, 08:49 AM
I read the story this morning and wondered myself what kind of impact this may have on other parks. I know the tactic has been to have outside investors or operators for the international properties - but how close is Eisner and the board from deciding that the parks here (or parks and filmed features, as in a JHM story suggested) should be rolled out to an investment group and simply allow for the brand to continue.

I look at Rusolo's and Eisner shareholder comments the last two times they spoke and it's really pointing in that direction. They want to save their shareholder value - and if you're not spending money you're cutting costs. What's the easiest way? License the properties and images to a third party and let them incur the costs. If it's a success - you share in the wealth; if it's a flop, you can press hard since they are a licensee instead of a part of the corp.

it would be a political and investment house tightrope but I bet if you get one large institutional investor behind it they'd get it done.

sediment
01-26-2004, 01:12 PM
I'm surprised that only one paragraph pointed to the obvious reason why WDS-P is not a success: not enough to do for the same price as DLP. Instead five or six reasons were floated first (official Disney reasons, it seems).
Strangely, "unfair internet critiques" was not among them.

blusilva
01-27-2004, 07:06 AM
Disney executives said the park was victimized not only by the travel slump but by subsequent events such as war with Iraq, the outbreak of severe acute respiratory syndrome, harsh weather and a series of transportation strikes.

*snip*

"We don't have a product problem," Eisner said. "We have a problem that stems from opening a park in a recession."

This is a familiar tune. How long can he continue to sing it? I can't wait for the verse coming up about the price of tea in China.