Disney signs agreement for Shanghai theme park

[crazy4wdw]

From Reuters:

Disney signs agreement for Shanghai theme park

Disney signs agreement with Shanghai firm over Disneyland

* Disney still awaiting final central govt approval for JVs

* Shanghai park expected to cost 25 billion yuan

By Melanie Lee

SHANGHAI, Nov 5 (Reuters) - The Walt Disney Co (DIS.N) has signed an agreement with a Shanghai company for the establishment of a Disneyland theme park in the city, bringing its long-planned park in mainland China closer to fruition.

The deal was reached with Shanghai Shendi Group, which was specifically created for the development of the Disneyland project, the official Xinhua news agency said on Friday.

Disney confirmed the Xinhua statement and said it was still awaiting final approval from China's central government regarding the incorporation of the related joint venture companies and the completion of regulatory procedures.

"For quite some time, we have been involved in discussions with the Shanghai government about building a Disney theme park. We can confirm the statement from the Shanghai government that we have taken another step forward in the approval process," a Disney spokeswoman said in an emailed statement to Reuters.

Shanghai's Disneyland is expected to cover around 4 sq km and cost about 25 billion yuan ($3.75 billion), Xinhua said. Disney itself gave no further details.

It was not clear what the ownership structure of the park would be like, but state media reported last year that an investment company controlled by the Shanghai municipal government would own a majority stake in the park.

Disney received approval to build a Disney theme park in Shanghai a year ago, but discussions about the specifics have been ongoing and few details have been released publicly.

Disney has long sought to build in Shanghai, a wealthy city of about 20 million people that is ringed by the prosperous Yangtze River Delta, home to tens of millions more potential visitors.

It was less enthusiastic about building near Beijing, which has fewer large population centres in the immediate vicinity.

Disney's foray into the China market has been mixed so far, with its Hong Kong Disneyland park reporting a loss last year. (Additional reporting by Sally Huang in Beijing; Editing by Jason Subler)

 

[Uncleromulus]

"Mixed" is being rather kind--I believe Hong Kong lost a lot of $$$

Wish I could get excited about this but something in me just does not see Shanghaians mobbing the new park or buying armfuls of Mickey merchandise.

 

[skiingfast]

Wish I could get excited about this but something in me just does not see Shanghaians mobbing the new park or buying armfuls of Mickey merchandise.

Why would they want to? They spend all day making it.

In fact if I was disney I would use this as a bargaining point and threaten to move the manufactoring of it's licenses products to other countries. I think Disney should use this to obtain more ownership than Chinese law allows.

 

[Mom of 2 Wife of 1]

Remember, EuroDisneyland was a bomb when it first opened. Now, it's the #1 tourist destination in Europe.

Give HKDL some time and ultimately Shanghai as well. They'll do just fine. Don't you worry your pretty ltitle heads about it.

 

[lockedoutlogic]

Remember, EuroDisneyland was a bomb when it first opened. Now, it's the #1 tourist destination in Europe.

Give HKDL some time and ultimately Shanghai as well. They'll do just fine. Don't you worry your pretty ltitle heads about it.

They are only building parks in china to kiss butt for trade deals that result in the low quality, mass produced crap that they jam 150 gift shops in their american parks with being even cheaper and more of a endless cash grab...

so maybe "worry" isn't the right word..."mourn" would probably be more accurate

 

[Mom of 2 Wife of 1]

They are only building parks in china to kiss butt for trade deals that result in the low quality, mass produced crap that they jam 150 gift shops in their american parks with being even cheaper and more of a endless cash grab...

so maybe "worry" isn't the right word..."mourn" would probably be more accurate

Wow. I wasn't aware you had sat in on those crucial WDC/China international trade negotiations. You seem to have it all figured out...

They're putting a park in one of the world's largest centers of population which will only continue to grow. It's called "good business strategy."

Also, you can mourn all you want. Must be lousy going from day-to-day with such a negative attitude? Ah, well, not me...

 

[Uncleromulus]

Mom of 2:
Have a hunch it will be a LONG time before Shanghai ever makes a profit for the Company. Of course I'll be an far older man before it even opens

Does the Chinese GOVERNMENT have ANY interest in this park, or is it all "private" funding on their side???

 

[skiingfast]

Mom of 2:
Have a hunch it will be a LONG time before Shanghai ever makes a profit for the Company. Of course I'll be an far older man before it even opens

Does the Chinese GOVERNMENT have ANY interest in this park, or is it all "private" funding on their side???

China is not a capatalist country. Is there any difference?


I'm sure the money made could be easy. You build it with cheap yaun today and get cash back in valuable yaun later.

 

[lockedoutlogic]

Wow. I wasn't aware you had sat in on those crucial WDC/China international trade negotiations. You seem to have it all figured out...

They're putting a park in one of the world's largest centers of population which will only continue to grow. It's called "good business strategy."

Also, you can mourn all you want. Must be lousy going from day-to-day with such a negative attitude? Ah, well, not me...

again...might want to cut back on it a little

 

[Mom of 2 Wife of 1]

again...might want to cut back on it a little

Stop. Just stop while you're behind.

 

[lockedoutlogic]

Stop. Just stop while you're behind.

Hmmm...don't know what you are going to accomplish here...

do you want to discuss past events, hard financial numbers, or the rogue's gallery of bad executives to be run through that oh so "magical" place?

you are ridiculously biased...you should just leave it at that

 

[Uncleromulus]

skiingfast: I know it isn't a capatilist country-nor is it any sort of democracy. Meaning the government can probably do whatever it wants.

So lets say relations between the US and China really head south--maybe over Taiwan once again. Or the new cars they are making and we might refuse to allow in the US. Or anything else for that matter.

Could the Chinese government simply seize the Disney park? Or maybe even "encourage" their citizens not to go??
Far fetched?

 

[Disco]

I have to say that such a large population would make it difficult for this park to do wrong. The losses at Hong Kong do make me pause though.
The start up costs for the park sound good though. Sounds like they might actually be throwing enough money at a launch for once (I think at least, anyone remember how much HK cost to build?).
Also,
China is very much a capitalist state now. The many fast food chains and Western Retail chains are more than enough proof of this.

 

[r-town]

Disney parks are starting to pop up all over the world

 

[ChrisFL]

Remember, EuroDisneyland was a bomb when it first opened.

Remember, Disney MGM Studios was a bomb when it first opened.
Remember, Animal Kingdom was a bomb when it first opened.
Remember, Disney's Californa Adventure was a bomb when it first opened.
Remember, Hong Kong Disneyland was a bomb when it first opened.
Remember, Disney Studios Paris was a bomb when it first opened.

I'm sensing a pattern here...ok, maybe I'm being a bit extreme, I don't have specific figures, but I'm getting used to this pattern.

 

[Disco]

Remember, Disney MGM Studios was a bomb when it first opened.
Remember, Animal Kingdom was a bomb when it first opened.
Remember, Disney's Californa Adventure was a bomb when it first opened.
Remember, Hong Kong Disneyland was a bomb when it first opened.
Remember, Disney Studios Paris was a bomb when it first opened.

I'm sensing a pattern here...ok, maybe I'm being a bit extreme, I don't have specific figures, but I'm getting used to this pattern.

LOL, but they did have a big success with Tokyo DisneySea. Maybe Disney should take a cue from that.

 

[Disco]

Disney parks are starting to pop up all over the world

I predict India next. Disney is going after the population centers.

 

[ChrisFL]

LOL, but they did have a big success with Tokyo DisneySea. Maybe Disney should take a cue from that.

They should take a lot of cues from that, unforutnately they won't because they'd rather spend less than $800 million for a park instead of the $4 Billion+ that they used for DisneySea

 

[Disco]

They should take a lot of cues from that, unforutnately they won't because they'd rather spend less than $800 million for a park instead of the $4 Billion+ that they used for DisneySea

Well the article says 3.75 Billion. I'm guessing that is for two parks though (Standard DL & MGM combo). That means almost 2 bil per park. While that's still less than half of Disney Sea, I'm thinking that money goes quite a bit further in China than Japan. They might actually be throwing enough capital at a new park for once...

 

[ChrisFL]

Well the article says 3.75 Billion. I'm guessing that is for two parks though (Standard DL & MGM combo). That means almost 2 bil per park. While that's still less than half of Disney Sea, I'm thinking that money goes quite a bit further in China than Japan. They might actually be throwing enough capital at a new park for once...

Ah ok, yes that does sound better...maybe they're finally learning their lesson after HKDL.

I mean it's one thing to have a second park that's a half-day park, but HKDL was such a disappointment because it was the main park.