Disney now owns about 40 percent of EuroDisney, but according to Time's math, the remaining 60 percent of the EuroDisney shares cost only about US$120 million. That would put the entire market value of the Disneyland Paris Resort at around $200 million. That's just one-fifth of what Disney spent upgrading California Adventure.
The Disneyland Paris has been a financial mess ever since it opened as the one-park EuroDisneyland in 1992. Too-optimistic assumptions about real estate development on the property led the company to borrow a ton of money it couldn't easily repay with just park revenues when the real estate deals didn't work out.
And once something's in heavy debt, the interest payments become a bigger and bigger expense, robbing the company of opportunities to spend its money in other ways - such as improving the underdeveloped Walt Disney Studios Park, or bringing the woeful Disney Village up to Disney's design and customer experience standards.
Disneyland Paris needs an infusion of cash to pay down its remaining debt and to build new attractions. But it's a much smarter business deal for Disney to make that investment if it gets 100% of the return back, instead of just 40%, as it would now with its current ownership stake. And heaven knows EuroDisney's other stockholders aren't going to want to throw more money into the company, after so many of them have taken a loss by buying into EuroDisney at a higher stock price than it's now worth.
So Disney's got two options: Let Disneyland Paris linger, making what the late Steve Jobs called a "brand withdrawal" on the Disney name as its facilities decline, or jump in and buy out the company.
At $120 million, that second option isn't just the right one - it's a relative bargain, too. Here's hoping that we'll soon be seeing some great improvements at the Disneyland Paris Resort.
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Basically Disney's problem is that Disney's biggest competition is Disney.
A trip to Flordia is a a just as a viable destination for a Brit at least (we even get advertisements for Busch Gardens and UOA) as DP, I can't speak for the rest of the continent.
"losing" Disneyland Paris would be a huge prestige blow. I think the solution is a complete rethink. Tokyo has Disneysea that makes it different, maybe the solution make a big change to DP to make it unlike the other MK parks - maybe even abandon the MK concept as we know it... Make it a park that Americans (and even Europeans) cannot visit anywhere else.
Not unlike a certain park in Anahiem used to be once.
But get rid of all french managers as Rob suggested would be a huge mistake. No one can manage a company in a foreign country without local people.
The 5 Disneylands are regional parks, but WDW is a world destination.
Btw, Disney alread owns 60% since Euro Disney SCA only owns 80% of the park, while the other 20% are directly held by Disney ( its even more complicated strictly legal speaking, with the park property technically owned by creditors for tax reasons or sth like that ).
So (~1900(debt)+164/0,8) + estimate for cash value of franchise and managment fees, currently arround 62 million a year. Make that at least 62*15 ~ 3500€ valuation for the resort.
As mentioned the big problem is the people.
It always feels overcrowded, a large number of the guests are pushy and rude, and the staff are on the most part absolutely useless.
There are major issues with the way things are organised.extra magic hours with the majority of the major rides not open, all but 1 of the quick serves being closed on a very busy day signs outside mot of the restaurants saying we're closed but try this other place (only for that place to be closed as well and really unhelpful staff who aren't able to answer simple questions.
P.S. I've seen the ownership and control flowchart for EuroDisney SCA and it gave me a SERIOUS headache, it was THAT complicated.
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Really hoping this comes true.