Disney purchased Busch Gardens

[zulemara]

I'll check with the Bus drivers and Boat Captains in a few weeks they always give us the straight facts

Hey I always make sure my rumors have some degree of sense and validity to them and even then...I state they are rumors.

 

[TheRustyScupper]

1) I believe it.
2) A bus driver told me so.
3) He overheard a biggie saying "a mouse in the busch is worth two in the hand".

 

[pwdebbie]

Busch Gardens Williamsburg has been renamed Busch Gardens Europe but the name is not catching on with most people. I can think of two reasons for the name change -- Busch Gardens in VA's theme is European countries and InBev is based in Europe.

 

[Horace Horsecollar]

I can think of two reasons for the name change -- Busch Gardens in VA's theme is European countries and InBev is based in Europe.

The official name change from "Busch Gardens Williamsburg" to "Busch Gardens Europe" was way back in April 2006 -- long before InBev's mid-2008 actions to acquire Anheuser-Busch. Also, at the same time, Busch Gardens Tampa Bay became Busch Gardens Africa. The idea was to make the names reflect the parks' themes.

The location of InBev's headquarters had nothing to do with the 2006 name changes.

I don't recall the names ever officially reverting back to what they were before the 2006 name change. However, these days, Busch Entertainment seems to be primarily using the Williamsburg and Tampa Bay names, not the Europe and Africa names.

 

[bookwormde]

Like most rumors I doubt it is true.

I also agree that I would rather see Disney improve the existing parks.

With that said and with Disney’s previous interest in the Virginia area it make a lot of business sense if Disney can buy a “non performing” park (one that is operating at a loss) at a “bargain price” since it has been shown that “buying land” does not mean that you will be able to get the approval for a park. I am still not sure that it makes sense to have a park where there are freezing temperatures 4 month out of the year but if Disney has finally figured how to manage this problem then picking up a park on the cheap is a quick way to get “up and running”. Also with the “quality reputation” that Disney seems to be able to maintain, many jurisdictions might well se it as a “step up” from the situation with a current park.

bookwormde

 

[Horace Horsecollar]

With that said and with Disney’s previous interest in the Virginia area it make a lot of business sense if Disney can buy a “non performing” park (one that is operating at a loss) at a “bargain price” since it has been shown that “buying land” does not mean that you will be able to get the approval for a park.

The "previous interest in the Virginia" happened about 15 years ago. Michael Eisner wanted an American history park in the Washington DC area to make money off the millions of families that visit Washington DC each year. Washington DC, along with its Maryland and Virginia suburbs, also has a sizable local population.

A seasonal, European-themed, thrill-ride park almost three hours from Washington DC is not a way to capture day guests who are Washington-area visitors or residents.

I've never heard that Busch Gardens Williamsburg operates at the loss. I don't think that's the case. Overall, Busch Entertainment is profitable (although, currently, the company's theme park profits are down, while their beer profits are up).

Anheuser-Busch InBev was hoping to get billions of dollars for their profitable theme park division -- not to let the parks go at a "bargain price."

Just because Disney's plans at Haymarket, Virginia, ran into opposition does not mean that Disney could not successfully gain approvals somewhere else. In fact, Disney could easily find locations where the politicians would bend over backwards to gain the economic benefits that a Disney park would bring.

The Walt Disney Company soured on the idea of an American history theme park long ago. Otherwise, there would be one by now.

 

[bookwormde]

Horice Horsecollar,

No the Busch entertainment division has not “reported” a loss (yet) but since during a downturn in the early 1990’s they went into and net operating loss, depending on the severity and length of their current recession it is a reasonable possibility.

Additionally if you add to the “cash flow” requirement of a reasonable ROI (which when you borrow $ for a “merger” is needed to service the debt), any segment of a corporation which does not make a reasonable ROI, especially if it is “non core” is likely to be sold with it’s cash flow capability as a major determining factor as to the price.

While a Disney American history park development started 15+ years ago it was active long before and after that, and before that was an attempt to develop a park in southern Pennsylvania in the 1970’s, so this is a project which has existed through many management teams, and if a profitable and practical way could be found to implement it you can bet it would move “off the back burner”.

And yes opposition was the major reason for the souring of the Haymarket project, and the lack of an appropriate site where this impediment does not exist is an issue for all new “theme parks”, the not in my back yard thing, although this issue tend to lessen in difficult economic times.

bookwormde

 

[Pluto Region1]

It would have to be disclosed to the SEC in their quarterly filing (called a 10-Q), if a purchase like that was made. A good question brought up - would it really have to go before the shareholders for a vote? I don't know what the sum price for buying all the parks would be, but did Disney get permission from shareholders to buy Pixar or their latest Penguin acquisition? I don't recall that being the case and if they did to buy ABC, then the question is, at what price or when does Disney go to the shareholder for permission to acquire an entity?

With the hard economic times Disney is facing right now, and the acquisition of Penguin, it is hard to imagine that Disney would stretch themselves that far to buy the Busch parks - but it would be nice if they could, esp. for the animal parks (as Pete has pointed out). On the other hand, if they DID buy the chain of parks (or even just 1 or 2 parks), do you think they would would run them as they are under their existing brand name, or bring them under the Disneyland/Disneyworld banner and make them more Disney-ish (stop selling alcohol, etc)?

 

[Horace Horsecollar]

There are really two issues in this thread.

The first is the OP's statement that "Disney purchased both Busch Gardens Parks." As several replies make clear, there is no chance that Disney and Anheuser-Busch InBev completed such a transaction, and have somehow kept it a secret.

The other issue is whether it makes business sense for Disney to buy one or more parks from Anheuser-Busch InBev's theme park unit, Busch Entertainment Corporation (or even to buy the whole business unit). The parks have a long-term history of profitability. And Disney could leverage their brand, experience, and characters to "plus" the parks. I still don't expect it to happen.

What I really don't expect is for Disney to pay A-B InBev what they want for Busch Gardens Williamsburg, only for Disney to tear it down and rebuild it as Disney's America. As I wrote elsewhere, that makes as much sense as turning Epcot's World Showcase entirely into Disney's America.

 

[fannatic]

The last rumor that I heard said that Universal was interested in buying the Busch parks. I have my doubts about that, because Universal parks are in so much debt.

 

[pwdebbie]

The official name change from "Busch Gardens Williamsburg" to "Busch Gardens Europe" was way back in April 2006 -- long before InBev's mid-2008 actions to acquire Anheuser-Busch. Also, at the same time, Busch Gardens Tampa Bay became Busch Gardens Africa. The idea was to make the names reflect the parks' themes.

The location of InBev's headquarters had nothing to do with the 2006 name changes.

I don't recall the names ever officially reverting back to what they were before the 2006 name change. However, these days, Busch Entertainment seems to be primarily using the Williamsburg and Tampa Bay names, not the Europe and Africa names.

Well, gee, I guess I am little behind the times. Thanks for the info.

 

[Horace Horsecollar]

The last rumor that I heard said that Universal was interested in buying the Busch parks. I have my doubts about that, because Universal parks are in so much debt.

fannatic,

You wrote that the "Universal parks are in so much debt." What is the basis of that statement?

The Universal theme parks are part of NBC Universal, which is 80% owned by General Electric, with 20% controlled by Vivendi. General Electric, across all its business units, has over $100 billion in total equity!

(Are you thinking of Six Flags? Six Flags Inc. is drowning in debt. It's very possible that Six Flags Inc. will file for Chapter 11 bankruptcy this year to restructure the company. The company's total equity is over $200 million negative!)

General Electric could easily invest in more theme parks through NBC Universal, if the company wanted to. But General Electric has other financial opportunities, such as picking up financial services firms (cheap) and investing in energy technology for a global market.

 

[fannatic]

I was referring to an Orlando Sentinel article that talked about Universal Parks' debt. It mentioned that they may not be adding anything new for a while after Harry Potter and the new coaster. Sure, General Electric has plenty of dough, but they don't seem that interested in theme parks. There have even been rumors that they may sell them at some point.

 

[Horace Horsecollar]

I was referring to an Orlando Sentinel article that talked about Universal Parks' debt. It mentioned that they may not be adding anything new for a while after Harry Potter and the new coaster. Sure, General Electric has plenty of dough, but they don't seem that interested in theme parks.

fannatic,

You make good points. The Orlando Sentinel Article is at http://www.orlandosentinel.com/business/custom/tourism/orl-bizuniversal08040809apr08,0,2469928.story

The business entity that owns and operates the two theme parks at the Universal Orlando Resort is Universal City Development Partners Ltd., which is a 50-50 joint venture of NBC Universal and private equity firm Blackstone Capital. It's interesting that the two partners are willing to let their joint venture flounder under heavy debt.

Unless there's a major change in how the partners view their theme park partnership, it's highly unlikely that the partnership would acquire parks from Busch Entertainment.

The SEC filings for Universal City Development Partners Ltd. are at http://www.secinfo.com/$/SEC/Registrant.asp?CIK=0001262450

 

[MassJester]

The rumor from the Blackstone side is that they and GE do not see eye to eye on the future of Universal.

Both GE and Blackstone have mountains of money, but that does not prevent any of the organizations in which they have taken an interest from accumulating (or even being overwhelmed by) debt.

 

[fannatic]

There was an interesting Motley Fool blog today. It implied that Disney is just "phoning" it in this year at the parks, while their competition is spending on lasting attractions. They said that Disney has more than enough money to spend on major new attractions. They don't have the debt problem of Universal. In my opinion, they seem more interested in keeping the conservative Wall Street analysts happy. These pencil pushers don't want them to spend any money on new attractions.

 

[ParrotBill]

In a down economy, if you have money to make investments, you do it.

But, like many other corporations, Disney is looking for faster return on investment.

I can easily see that buying an existing park in Virginia is smarter money than starting with vacant land. IF you can get any government to let you start with vacant land for such a thing within 100 miles of DC. All you need to do is rebuild attractions, theming, etc. You save a couple of years in approvals, negotations, and and oodles of money not building roads, parking, electrical and plumbing infrastructure.

Buying the Tampa property could give Disney a stronger hold on the Florida Tourist Dollar - but the area is landlocked and really bad hotel infrastructure so I doubt this is true!

 

[jlewisinsyr]

In a down economy, if you have money to make investments, you do it.

I'll say it again as I've said before, smart companies building during "down" markets (ie. invest in their infrastructure).

 

[sdickison]

That is obviously a rumor. I live in Orlando and they did announce that Busch Gardens & SeaWorld were for sale. The company that bought Anhauser Busch wants to sell all the theme parks which not only include the Busch Gardens parks but the 3 SeaWorld parks as well. It was reported on the news here in Orlando that maybe Disney or Universal may buy them. No word on who is going to purchase them. They did say there were several other potential buyers on the list of hopefulls.

A customer of mine who is a manager at Busch Gardens Williamsburg told me today that Disney purchased both Busch Gardens Parks. I'm not sure how much truth their is to this however both parks were for sale and disney had said in the past they wanted to build a colonial themed park in the Williamsburg, VA area. Aparently they also purchased 250 acres around the park. He said they plan to begin restructuring the parks and rebuilding over the next 2 years. Honestly I would be a little sad to see Busch Gardens, the theme park I have grown up with, go... but having a disney park 30 mins away would be pretty nice.

 

[MineMail]

I don't think anyone will come up with a link to an article in which A-B InBev announces that "they were no longer interested in selling the entertainment division of Busch (at least not at this time)."

If you search for "rumor disney busch gardens," a screamscape article titled "Busch Entertainment - In No Rush to Sell Anymore" will come up. However, horace is correct that the actual article doesn't quote anyone from InBev about the selling status of Busch Gardens.

Some people believe that InBev themselves started that rumor. *shrugs*