Disney Sets $1.25 Billion Bailout for Disneyland Paris
The Walt Disney Company has released its bailout plan for Disneyland Paris as the resort struggles with low attendance and increasing debt.
Disney announced that it has set aside a €1 billion recapitalization plan to help get the resort back on its feet after struggling since its opening back in 1992.
“This recapitalization plan would improve Euro Disney Group’s financial position and enable it to continue investing in the guest experience,” Disney said in a statement. “With this effort, we are demonstrating the Walt Disney Co.’s continued confidence in Disneyland Paris, which remains the number-one tourist destination in Europe.”
The plan includes $526 million cash pumped into the park and will convert eliminate $750 million in debt.
Currently, Disney owns 40% of Disneyland Paris, Saudi Prince Alwaleed owns 10% and the rest is traded on the Paris Euronext Exchange.
Disneyland Paris saw an estimated 14.1 million-14.2 million visitors during September 2013-September 2014 fiscal year. That is down some 700,000-800,000 from the previous year. Hotel stays are also sliding at the resort with a drop from 79.3% in the 2013 period to 75%-76% during the 2013-2014 season.
There have been rumors that The Walt Disney Company will eventually take full ownership of Disneyland Paris, but nothing has officially been announced.