DEBATE: So, joking and flamng aside -- What IS Disney's future?

[Luv2Roam]

"Disney debt downgraded

In a move that places $14 billion in Disney debt a few steps above junk bond status, Fitch cut Disney's rating from "A-" to "BBB+" and placed the media giant's credit on a "negative" status.

The New York ratings agency cited Disney's $5.2 billion acquisition of the Fox Family Channel.

However, some other Disney units also have struggled recently, including theme parks where business has fallen an estimated 10 percent, depressing theme park revenue by roughly 17 percent.

Further, the Disney-owned ABC Network has fallen behind other networks in the ratings wars, at times placing fourth behind the Fox Network.

Disney responded to the move by emphasizing recent debt-cutting measures, which have included slashing capital expenditures by 30 percent to $1.25 billion."

Did anyone here think five years ago that Disney would be one short step away from junk bond status?
Probably one reason we all are so upset. So much potential lost or buried.

What is Disney's future? You have the crystal ball -- It's your turn and what do you see?

 

[Mr D]

I see Katzenburg-SKG and OLC (Oriental land Co.) get together and take over the helm of Disney in America.
OR....the board of directors offer an olive branch to Katzenburg to be CEO.

Although SKG has admitted no interest in pursuing Disney I think its a smokescreen. The rift of Katzenburg VS Eisner is too great and it will play in some manner in the future, especially since SKG achieved I think $1.2bin in credit, correct me anyone.

Whith the DisCo credit ratinf being downgraded it puts additional pressure on Eisner to get off the pot and do something to shock start a trend, my guess is an announcement of a major expansion at WDW most likey at the AK.
Mission Space is the only major addition lately or rather next year.
not much can be done for DCA except to put a rush on the completion of TOT.
The stakes are good of an aggressive buyin of Disney from an outside source. OR......in an extreme and VERY risky endeavour......Eisner buys Vivendi's theme parks of IOA and such. Doing so now may mean a trade of something big like the latest acquisition of Fox family network or even possibly ABC in a trade agreement.

 

[Bstanley]

Wow - it's Deja-Vu all over again (sorry Yogi).

I can just picture the comments in the board room about JK as head of Disney Corp (still echoing down the years from 1984):

"But he's only been the president of a studio - not a major corporation like Disney"

"He's not enough of a business guy"

"But we need a creative type"

etc, etc

...

If you believe Scott Adams (Dilbert), JK doesn't have a chance at being the head of Disney Corp. (whether he is capable or not). To be the CEO he would have to be Tall, and have Good Hair. Sorry.

 

[blackshirt]

IMHO Things will get a lot worse before they get better. In order to reverse things at the parks, Disney is going to have to spend some money. Short term EE and longer hours are needed and these will cost money. Longer term Disney desperately needs MAJOR new attractions on the scale of Splash in order to make people excited and just have to come to WDW. Even with this spending it would take awhile for word to get around, and with the recent downgrade in bond ratings any additional borrowing will be difficult. WDW might have to be run on a break even basis in the short term in order to turn it around which would mean a loss for the company as a whole. I don't see this happening under present management. Everything hinges on quality management and based on the last few years of Eisner that is not going to be pretty.

 

[Bob O]

I think disney needs to clean their corporate house and get rid of eisner and his ilk!!! They need to go back to the roots of what made it a great company and even if it may be a short term loss get rid of the sports teams they have bought,abc as examples. they need to concentrate in making good quality films and improve their theme parks which were their bread and butter. Their is no reason they shouldnt be able to produce as high quality of films like pixar has or the quality they did when katzenberg was on the payroll. They need to bring in somebody new with fresh ideas and let the imagineers do their job again, but first eisner/pressler et al. have to go!!

 

[WebmasterPete]

Oh no....everyone run and hide...I'm agreeing with BobO...that must certainly be a sign of the apocolypse!

I think Bob is right. I think the only thing that can save Disney is a massive management change. I think Eisner's done a good job, but the focus of the company lately seems on cost cutting at any expense. Just look at our Resorts board...seems like just about every post complains of service issues at the resorts. We're hearing nightmare stories from the parks as well. Services are being cut at a break-neck pace, then they wonder why attendance is off?? I think it's a shame. Get back to what made the company great, and stop expanding during a time when you can't keep your core businesses afloat.

Truth be told, I think some of the management at Disney is downright sleazy, and needs to go. I won't mention names, but I have a few characters in mind right now.

Pete

 

[WDWHound]

Its no secret that I think Disney is making huge mistakes right now. I also think Universal is learning how to do it right. In the short term (the next 3 or 4 years), this is very bad new for Disney.

In the long term, I think this is one of the best things that could happen. Once Disney hits rock bottom, I think they will finally decide to fluch their current management and do what it takes to regain their top spot. Hopefully, this will mean a bunch of real e-tickets, just a bunch of lightly themed carnival rides. In 6 or seven years, I think we will see some amazing new attractions coming from Disney as they fight to claw their way back to the top.

Hey Pete, its good to see you posting here. You mentioned Universal's business practices. Is this a new problem since Vevendi took over or have they always been challenging?

 

[WebmasterPete]

I won't mince words about Universal's business practices. They treat travel agents like trash. The offer the TA community certain pricing and offers, but keep the best deals for themselves. We had found a sympathetic ear at Lowes at one point, but it seemed to do little good. This was during the period right after 9/11 when Portofino was running less than 10% occupancy. Disney, on the other hands, treats the TA community much, much better. They are much more of a partner than Universal is. I would LOVE to sell Universal, but I can't deal with having to police them constantly. I also hate having visitors come back and say "I found a better deal going through Universal directly". I can't say it's Vivendi's fault, I think it's just poor management at Universal Vacations. Maybe one day they will get their act together, but until that day comes, their resorts will not see the light of day on this site.

Pete

 

[Bob O]

Pete, its nice to be able to agree on something, now if only the Roy Disney/Stanley Gould would sponser a palace revolt!!