What would happen to DVC owners if something happened to WDW?

[lucky_bunni]

Ok, I was thinking about this, and god forbid, what if something happened to WDW? Like what if Disney really fell on hard times like the 1980s and they looked to sell the parks and disassemble the company. I'm wondering if there is anything in the DVC contract that addresses something like this. Would they be able to buy your contract out in this event? Would your contracts be transfered under the new ownership? Just a silly thought, but I'm thinking they would have had to cover this subject...

 

[CarolMN]

Under the circumstances you describe, IMHO, nothing. We bought only the right to use accomodations in a particular resort. There are no guarantees than any of the Disney attractions will be in place during the term of our lease. If Disney sells or breaks up, it wouldn't have any impact on our contract. They have no obligation to buy us out.

If Disney sells the DVC resorts, it would be subject to the terms of our lease. Since members pay all the operating costs, the value of the DVC resorts to Disney is the land and whatever value the building may have when DVC ends in 2042. That's all they could sell. Again, JMHO.

 

[lucky_bunni]

So basically, even if there was nothing else open at WDW (theme parks, hotels, DTD, etc) you would still have the right to stay at the DVC until 2042 or 2052? Who would maintain the resorts or oversee fees? Sorry, I know this is all hypothetical crazy talk!

 

[Caskbill]

I'm not sure but I think this is right.

DVC is owned by Buena Vista Trading Company and is operated by DVD (Disney Vacation Development). The theme parks are owned by a different part of Disney.

No matter what happens to the theme parks, Buena Vista and DVD would continue to operate. DVC would operate just like any other time share development in the Orlando area. There would be no change in operations including maintenance and fees.

Although everything operates under the main Disney banner, DVD is totally separate from Disney Entertainment. DVD is a separate company.

 

[JimC]

Separate companies, but common ownership.

The closest example is Vivendi selling the Universal studios and parks. They are selling them as a package. Probably the same thing would occur to Disney, it would be dismantled along its lines of business.

Before Eisner came in the fear was that a corporate raider would carve up the company to unlock its two most significant assets at that time -- its undeveloped Florida land and its movie vault. But I suspect that happening again is a remote possibilty. Disney would more likely dump ABC than let the core business come under attack, in my opinion.