The Walt Disney Company has stated that it would invest $60 billion in its theme parks and cruise lines over the next decade.
Over a 10-year span, capital expenditure will nearly quadruple as Disney concentrates its investment in its parks, experiences, and goods.
The intentions were detailed in an SEC filing on Tuesday, revealing that Disney is ‘prioritizing initiatives projected to provide substantial returns,’ such as parks and cruises.
Disney generated $32.3 billion in sales in the year ending July 2023 as a result of its rewarding experiences.
‘We believe that the company’s financial condition is strong, and that its cash balances, other liquid assets, operating cash flows, access to capital markets, and borrowing capacity under current bank facilities, when combined, provide adequate resources to fund ongoing operating requirements, contractual obligations, upcoming debt maturities, as well as future capital expenditures related to the expansion of existing businesses and development of new products,’ according to the filing.
In premarket trade on Tuesday, the company’s stock was down about 1%.
The parks business has been a consistent profit generator for the corporation, helping to cushion losses in the Disney+ streaming division, which is only anticipated to turn profitable next year.
Disney has opened the Shanghai Disney Resort and more than quadrupled its cruise line capacity in the previous ten years.
It has also invested in its parks in Paris and Hong Kong.
CEO Bob Iger Faces Legal Battles in Florida Over Disney World and Ron DeSantis
However, Bob Iger’s term as CEO has not been without incident. He has arrived in Florida to confront court disputes over Disney World and Ron DeSantis.
Earlier this month, it was revealed that Disney has withdrawn a significant portion of its federal lawsuit against Florida’s Governor, leaving just the question of whether the media conglomerate’s First Amendment rights had been violated.
The Walt Disney Company requested permission from a federal judge to submit an amended case concentrating solely on the First Amendment issue, which was granted.
According to the accusation, the House of Mouse was retaliated against because it criticized the so-called ‘Don’t Say Gay’ bill.
After Disney condemned the DeSantis-backed legislation, the governor slammed the business and Chairman Bob Iger, accusing them of being ‘woke.’
DeSantis specifically targeted Disney’s special tax zone, which essentially allows the business to self-govern the property of its Disney World theme park.
DeSantis spearheaded the effort to rename the Reedy District the Central Florida Tourism Oversight District, while simultaneously replacing the board with his supporters.
However, prior to the new board taking over, Disney established a development deal for future investments. When the DeSantis board took over, those were tossed out.
This resulted in the federal lawsuit.
Source: Daily Mail