The The Travel Industry Digest is reporting that the Walt Disney Company are considering a buyout of Euro Disney S.C.A as reported in TIME.
Walt Disney Co is considering a possible buyout of the firm that manages Disneyland Paris, according to an exclusive report in Time.
The magazine revealed: ‘After two decades of putting up with lacklustre 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.’
The report said the purchase of the 60% of Euro Disney Walt Disney doesn’t already own would be the first step in a ‘comprehensive turnaround strategy’.
Of the 60%, 10% is owned by the Saudi prince Al Waleed bin Talal, and the rest widely held by individual and institutional investors.
Time said the Walt Disney Co was supposed to receive a steady stream of royalties and management fees from Disneyland Paris, but because of the resort’s poor financial performance, it has had to waive, defer or reduce these fees for most years of the resort’s 20-year existence.
The report also claimed that a buyout would be followed by increased investment in the resort aimed at paying down the debt more quickly, and increasing the number of attractions. Disney could build a third park on the site between now and 2030.
Source: The Travel Industry Digest