The BLOG FLUME - Vivendi Makes an Actual Move... Kinda

Blackstone Group (owner of half of Universal Orlando) makes it play to buy all of Universal's theme parks. Plus, advance word on Busch's new Haunted Lighthouse attraction.

OOPSIE!
Orlando Sentinel - May 2
Orlando Sentinel - May 2

The Universal theme parks, often treated as the redheaded stepchildren of Vivendi, may soon be getting new parents. Blackstone Group, which already owns half of Universal Orlando (and somewhere along the line I switched from knowing this to believing Liberty Media owned half of it... I write these in the middle of the night, okay?), is in talks with Vivendi to buy ALL the theme parks. The remaining 50% of Universal Orlando, all 100% of Universal Studios Hollywood, the 24% share of Universal Studios Japan and the 37% stake in Universal Mediterranea.

This is great news for Universal fans considering how Blackstone helped make Universal Orlando what it is today. But the great news could have a short shelf life. Blackstone used to own a large portion of Six Flags, which it later sold off at a huge profit. Analysts expect Blackstone to get in now, while Vivendi is so desperate, then get out when attendance is up.

Considering attendance IS up - UO pulls in 23% of the Orlando theme park market and that number is rising steadily - Blackstone may have to invest quite a bit in the parks to get attendance up enough to make a major profit off it. Not only should the parks continuing adding new attractions, but I wouldn't be surprised to see some action happening down on the Lockheed property, which Blackstone would also be buying.

If this happens - and nothing is set in stone when it involves Vivendi - it could cause problems also. Marvin Davis wanted ALL of Universal Entertainment in his bid. Would this spoil his interest? Barry Diller was also a big believer in the parks and removing them from the bargain may drive him away also. Then there are the problems of removing the parks from the company they are named after. The land USH sits on is leased from the Studios. And future rides based on Universal movies, like "The Mummy," would have to go through a licensing agreement just like Men in Black and Shrek 4-D did. And who knows if the little deal the parks have with DreamWorks will continue without the Studios behind them. Maybe the Universal parks will be more open to ALL movies, though, which could end up being a good thing.

DISNEY'S NEWEST PARADE... EXCUSE-A-RAMA!
Orlando Sentinel - May 2
MousePlanet - Apr 30

Disney profits fell all over the place again, except for films and DVDs, and Disney apologists fell all over themselves finding "reasons" for the problems. ABC and ESPN are down because it costs so much for NFL and NBA games (then stop paying through the nose for them!) The Disney Stores are down because, well because the suck, but I'm sure it was the economy that hurt them. And the parks? The parks are down because of the war and terrorist fears. Except attendance at the Disneyland Resort is still up! Apparently security is better on the West Coast!

Speaking of the West Coast, over at MousePlanet, David Koenig makes some apologies of his own for DCA. Well, not apologies, but he does point out how the complaints about DCA are complaints people have had about other Disney parks. The problem with most of his arguments - except for the one about the California theme, which isn't as limiting as some Disney freaks would like to think - is that much of it is apples and oranges. You can't fairly compare how DCA opened to how DL opened since 50 years separates the two! You can't fairly compare how DCA opened to how other Orlando parks opened since the two markets are completely different. And you can't fairly compare how each mistake DCA made was similar to a mistake another park made since NO park has made as many mistakes as DCA. How many Disney parks have ever had LISTS filled with "common complaints?"

BOO!
St Petersburg Times - May 1

Thanks to Deborah for the link!

Busch Gardens Tampa Bay will open its new RL Stine's Haunted Lighthouse 4-D attraction on May 31, missing the big Memorial Day weekend by mere days. The SeaWorld San Antonio version is also listed as opening this month, while the Busch Gardens Williamsburg version has already opened, although we haven't heard much on the TPI threads about it. Anyhow, the article gives some details about the attraction, which I won't ruin here, and it sounds like a winner, which BGT will definitely need after the Rhino Rally debacle.

Universal's original partner in Universal Orlando was Britain's Rank Organisation PLC, which sold its share in UO (then Universal Studios Escape) to Blackstone in June 2000 for $275 million.

(Which would make Universal Orlando's total value in 2000 -- presumably the top of the market -- a mere $550 million. That's less than half of the $1.4 billion Disney spent on California Adventure and Downtown Disney. Yikes.)

Analysts are saying that Vivendi Universal could get $1.5 billion for the rest of its theme parks -- including the other half of UO, USH and stakes in USJ, Port Aventura and the upcoming Universal Studios Shanghai.

Unfortunately, that would likely not include the land that USH and CityWalk Hollywood sit on, forcing the buyer to make lease payments to Universal's movie studio owner, whomever that might be. Still, doing the math, I find it difficult to believe that the remaining 50 percent share of UO would represent just 18 percent of the asset value of Univeral's worldwide theme park business. Either Universal Orlando's value has grown significantly during a period that Disney's blamed as one of the worst in memory for Orlando theme parks, or Rank screwed itself by selling its stake in UO to Blackstone for way below market value.

I don't know this, but following similar sales in the past, I would guess that the Universal Orlando debt was also handed over to Blackstone. Considering IOA and CityWalk cost more than a billion to build, and I seriously doubt it was built with cash, this has to be the case.

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