What if Disney goes under??

[Disney_Villain]

There are more immediate - and more dangerous - threats due to the global economy. Focus on them as they will impact you more.

This type of thread was bound to surface, just like the "due to skyrocketing gas prices, Disney is going going to suffer" that were posted last year. Look at gas prices now.

Enough of the "doom-and-gloom on Disney" threads. Worry about the banks instead! If they go under, you'll be more concerned about that than what happens to your hotel bookings.

 

[Disney_Villain]

In this rather horrible finanical climate, let's stay positive about the one thing that makes us all happy - the Disney parks and our DVC vacations!

There is no good reason to say that Disney/DVC/DVD is going to tank (DVC's Ko Olina resort is under construction, and it wouldn't be if DVD was forecasting bankruptcy).

 

[logan115]

Citi stock rose 34 % sometime today. I don't know what its currently trading at, but the stock market rallied today.

Do not fret. The sky is not falling.

Citi was actually up 38% according to my yahoo quotes. That's the good news. The bad news is the 38% gain came from the stock rallying 40 cents from $1.05 to $1.45.

Still a massive daily move though....and I'm also in the sky in NOT falling camp (if hasn't already hit the ground).

Chris

 

[Dano1182]

I agree that there are more important things to worry about.However as this is DVC thread I thought it was the proper place to post my questions about DVC and the current economic status.

I had forgotten that for some posters the mere thought of posting anything remotely negative would be frowned upon.
I thought this forum was for us to exchange ideas and share our thoughts and concerns.
Positive as well as potentialy negative.

I am far from a sky is falling type.
I had a thought that I believe was worth sharing.

For the record I am very happy with this forum and DVC.

 

[bavaria]

I had forgotten that for some posters the mere thought of posting anything remotely negative would be frowned upon.

Again, I would suggest that you are directing your comments towards the wrong posters. CarolA and I are hardly blind Disney supporters; you will find more than a few posts from us pointing out shortcomings by Disney.

I for one don't care for hyperbole. I prefer a reasoned discussion based on facts. It would appear that I may not be alone in that regard.

There have been a few responses on the legalities if Disney did not continue with DVC. At some point Disney may well decide to contract more outside vendors, and that may include portions of their operations such as the resorts. Or not.

But this thread does bring something to mind

 

[danielle782001]

I was thinking about this the other night...Now I really do not think Disney would ever "go under" and from reading those thousands of pages of our contact I know we are "safe" from losing our investment...However, I would think Disney will have to make some changes in this crazy economy...

What are some things Disney can do to shield themselves for taking a real beating during these hard times? Would they ever consider decreasing their prices for park tickets and dining...I don't know about you but now that I am a DVC owner my blood boils (just a tiny bit) when I see commericals for buy four nights get three free or when I get offers for free dining...We cannot take advantage of any of these offers...Is there anything that we can see them offering that might actually help EXISTING DVC members?

In short, does Disney have to change the way they do business to stay above water?

 

[Dano1182]

Stand by
I expect you will be recieving responses stating that We should concider our selves lucky that DVC allows up to spend our money there.

 

[tjkraz]

I had forgotten that for some posters the mere thought of posting anything remotely negative would be frowned upon.
I thought this forum was for us to exchange ideas and share our thoughts and concerns.
Positive as well as potentialy negative.

And that's exactly what we are doing--exchanging ideas and sharing thoughts.

I can only assume that you didn't get the sort of responses you were anticipating. Nobody said that you were wrong for bringing up the topic. But you asked for opinions and you got them. I honestly don't understand why you seem to be so offended by the responses posted here when you posed a very open-ended question and invited people to comment.

 

[cheezNE1]

I am sorry but I do think that these are fair questions.
Has anyone flown Pan am lately.
The markets are in a free fall.
Thousands are losing jobs.
Disney stock is taking a beating.Today it hit a low for the last year down over 50 percent.
Disney profits dive when people can not afford entertainmet or vacations.

Or should we not pay attention to the man behind the curtian?

GM, C, AIG, BOA, near to being a penny stocks, and there are reasons for that. Bad loans and bad investments might be the cause of it. CNBC announced today that hotel occupancy rise and some retail stores posted some profits and people wondering 'what crisis'. Was at Disney in Decemeber, my in-laws from overseas asked the same question. "I thought there's a recession, why is this place still so crowded?" A friend came back from Disney NYE and could not believe the crowds. A company like Disney - i believe to be in a different playing field, and visitors from all over the world. As to the stocks down 50%, thats pretty much close ur eye and throw a dart at the stock table and you will find a 50% drop stocks. Look at Google. If disney goes kapult , i doubt DVC will be my number one concern. It would mean the start of something even worst to come. I'm not saying it won't happen, but if it does, I would have other things that would worry me more than my DVC.

 

[cheezNE1]

I was thinking about this the other night...Now I really do not think Disney would ever "go under" and from reading those thousands of pages of our contact I know we are "safe" from losing our investment...However, I would think Disney will have to make some changes in this crazy economy...

What are some things Disney can do to shield themselves for taking a real beating during these hard times? Would they ever consider decreasing their prices for park tickets and dining...I don't know about you but now that I am a DVC owner my blood boils (just a tiny bit) when I see commericals for buy four nights get three free or when I get offers for free dining...We cannot take advantage of any of these offers...Is there anything that we can see them offering that might actually help EXISTING DVC members?

In short, does Disney have to change the way they do business to stay above water?

That's pretty much with anything now adays. Wouldn't it be nice to pick up a house now if we have the $ or buy a car now instead of 2 years ago? Can't time the market and just have to be happy with what we have.

 

[gk90]

Maybe more realistic question what happens if Disney closes some hotels where DVC is co- located what then?

Here's a thread with some more specific factual answers to this question:

http://www.disboards.com/showthread.php?t=2112003

 

[Hazzard101]

Wow

 

[JustSayin]

I would never say never, but there is absolutely no indication that Disney is going to fold anytime soon. They are still making money at a very handy rate. Not as fast as they were last year, but they are doing far better than most. I would think they would have to lose money for a while before you would have to worry about bankruptcy.

This is a good reminder to take some of the gloom and doom you hear with a grain of salt. It seems reasonable to worry about Disney if you listen to some of the coverage out there, but the reality is much less scary when you actually look at the numbers.

 

[BamaEd1]

I for one find all of the drama exhausting and prefer to spend my energy on things I can control or change.

If 'Disney goes under' some other company will retain the assets and some things may improve, some things may not be so nice.

Yep.

 

[JimMIA]

Citi was actually up 38% according to my yahoo quotes. That's the good news. The bad news is the 38% gain came from the stock rallying 40 cents from $1.05 to $1.45.

Still a massive daily move though....and I'm also in the sky in NOT falling camp (if hasn't already hit the ground).

Chris

The good news is this stock rose 38% in one day...to $1.45. The bad news is that within the past 52 weeks it had been as high as $27.35.

If I did my rough math right, after this big move yesterday, Citi is still down 95% from its 52 week high. Yesterday was what is called a "dead-cat bounce."

The stock is beyond worthless -- the federal government has far more money in this bank than the company's net worth. Many analysts think the government will simply lead a hopefully-controlled liquidation of Citibank now that they own it.

 

[jamie&Greg]

These threads are so depressing.

 

[jamie&Greg]

This is where I come to get away from the depressing news!!

 

[DVCconvert]

...
I for one find all of the drama exhausting and prefer to spend my energy on things I can control or change. ....

You're only saying this because you have blacked-out your basement windows and stockpiled 4 years worth of food & ammo down there!!

 

[disfanforlife]

These are scary times and people worry - it is only normal. BUT, I bought DVC so that I would have something to look forward to every year. I can always find a reason not to go on vacation. Now, instead I KNOW that we will go to WDW every year and it gives our whole family something wonderful and positive to think about and look forward to. Your questions are valid. But, I don't think that there is anyone here who has the answers.

 

[sgtdisney]

I think the answer to the original question is that your ownership interest in the "Disney Vacation Club" would still exist after a bankruptcy or dissolution of the company, if in fact that ever would happen. What your neighbors would be at your home resort, well that would be left up to the fates (and the bankruptcy courts.)

If the company went under completely the assets would belong to the creditors and be sold off to investors. It could be broken into big peices or small depending on the value and worth of the assets. Your ownership interest would remain yours, as one of your own personal assets until the expiration date of your contract. The management company of DVC would be bought out as well by an investor.

So, for the next 33-48 years you would still have access to your points to stay in the resorts declared into the inventory. No one can answer the value of that stay however. Would Disney World persist? Probably, but their is the possibility it could be broken up completely, or kept whole, no one could ever know that. The individual resorts could be sold off to different hotel chains, or the parks to seperate entities, or the entire resort could go on as one large investment, that no one could predict.