Walt Disney Corp Confirms Planning For Shanghai

[KeithS]

The Walt Disney Company today released a press statement confirming that it was in talks with Shanghai representatives to build a theme park in China.

The Associated Press story is below:

LOS ANGELES (AP) — The Walt Disney Co. said Friday that it was going to submit a plan to build a new theme park in China in a joint venture with the Shanghai government.

The family entertainment giant released a statement confirming its plans at about the same time as The Wall Street Journal released a story on its Web site that said Disney was working with Shanghai to build a $3.59 billion park to open as early as 2014.

A Disney spokesman declined to comment on the Journal story.

"Discussions have been ongoing about the feasibility of a theme park project in China," said Leslie Goodman, a spokeswoman for Walt Disney Parks and Resorts, in the statement.

"As part of this lengthy process, we worked on a joint application report with the Shanghai government which will be submitted to the central government for review. No deal has been signed, no project has been approved."

Disney shares were down 35 cents, or 1.5 percent, at $22.55 in Friday afternoon trade.

The Journal said Disney planned to take a 43 percent stake in Shanghai Disneyland, while a holding company owned by the local government would own 57 percent, citing unnamed sources.

The first phase of the project, on about 1.5 square kilometers near Shanghai's Pudong International Airport, would include a theme park, plus a hotel and shopping development and would be built over six years, the paper said.

Text: copyright Associated Press

So - it does seem to be getting closer now doesn't it?

I wonder if this has anything to do with the http://www.disney.com/23 URL that has got everybody talking?

Also - be sure to watch this video from the BBC News : http://news.bbc.co.uk/2/hi/in_depth/7813475.stm It features this year's Harbin Ice Festival in China - which has a distinct Disney flavour! Our favourite company is really pushing into China this year - building an ice Disney at one of China's most popular cultural events!

[mushu mama]

This is interesting considering all the continual denials.

So Keith, what do you think the countdown clock is all about? The official announcement of the shanghai park?

Lisa. -/

[KeithS]

So Keith, what do you think the countdown clock is all about? The official announcement of the shanghai park?

There are plenty of rumours about what it could mean. I thought it might be the Shanghai announcement, but the rumour getting the most airplay at the moment is the possible launch of a dedicated Disney fan club (named after 1923 - the year the company was founded.)

The tag line for this countdown clock is Are You 23? - which doesn't make sense if Shanghai is to open in 2014. If Shanghai was opening in 2013 it would make more sense because the tag line could be expanded to say "Are You Going In 2013?" - if you know what I mean...

Anyway, the fan club rumour is gathering momentum - I guess we will just have to wait another 58 days!

[ajp]

I've got to say from a personal point of view, I'm disappointed that Disney has gone down this path and agreed to put a park in China. With one already in HK, it doesn't make alot of sense to me. I hope it is successful for the sake of any future plans, but I'm going to be a little sceptical in this early stage.

[mushu mama]

the rumour getting the most airplay at the moment is the possible launch of a dedicated Disney fan club (named after 1923 - the year the company was founded.)

But what do they need another Disney fan club when there are well established ones all over the planet already?

I was talking to a friend about the Shanghai possibility today and he said that he thought it was dumb building another one in China instead of perhaps here... but my thinking is that Chinas economy is doing ok (compared to everyone elses) and that alone bodes well for growth over the next few years. I also think that China has such a huge market ( as compared to here) where even if a fraction of the population become regular visitors, the park could potentially have a pretty healthy turnover.

I'm not saying I know much about that stuff, but thats how it seems to me anyway.

Lisa. */

[ajp]

Which numerically and economically speaking is a sound argument, and I can't disagree with. I'm not sure as a target market audience that China would be historically aligned. BUT! I suppose Disney are the masters of creating and bringing new audiences to their sphere.

[KeithS]

Hmmm - thought I'd better bump this thread up a bit as it now seems very likely that Disney and the Chinese Government are about to hold a press conference about this. The talk is next week (or even some time this week) they'll announce that Shanghai Disneyland is going ahead.

We'll soon know if that rumour is good!

[KeithS]

Well - here is the press release! The central Chinese government have approved the project - it'll be full steam ahead soon!

THE WALT DISNEY COMPANY REACHES ANOTHER MAJOR MILESTONE ON SHANGHAI THEME PARK PROJECT

BURBANK, Calif. – November 3, 2009 – The Walt Disney Company today announced that the Project Application Report (PAR) for a Disney theme park in the Pudong district of Shanghai has received approval from the relevant authorities of the central government of China.

"China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for The Walt Disney Company in mainland China," said Robert A. Iger, president and CEO of The Walt Disney Company.

The PAR approval will enable Disney and its Shanghai partners to move forward toward a final agreement to build and operate the park and begin preliminary development work. Upon completion of the final agreement, the project's initial phase would include a Magic Kingdom-style theme park with characteristics tailored to the Shanghai region and other amenities consistent with Disney's destination resorts worldwide.

About The Walt Disney Company China

The Walt Disney Company (NYSE:DIS), together with its subsidiaries and affiliates, is a diversified international family entertainment enterprise with five business segments and is a Dow 30 company with revenues of nearly $38 billion in its most recently reported fiscal year. Our first animation screened in China in the 1930s and today our long association continues with offices in Beijing, Shanghai and Guangzhou with over 600 employees."

[mushu mama]

Wow!

Do we know any details yet? eg: is it going to be larger scale than HK? How will that effect the expansion plans for HK?
When is its expected opening date? When do they intend starting to build?

I think this is kind of exciting because the parks in China are the closest and cheapest option for a quick Disney fix for us Aussies. -/

Lisa. */

[ajp]

I don't like it ....




.... yet.

[KeithS]

I'm just locking this topic so that all conversation about Shanghai is continued in the Shanghai Disneyland forum - we don't want to end up with two separate threads confusing us all!