BREAKING: Disney Is Trying To Buy Out Disneyland Paris

The Walt Disney Company said today that it is offering to buy any outstanding shares of Euro Disney S.C.A., the company that operates the Disneyland Paris resort.  Disney is offering 2 euros per share, which is a 67% premium to yesterday’s closing price.

Disneyland Paris has been financially troubled for most of its existence, after its rosy visitor predictions didn’t pan out.  A number of financial maneuvers to reorganize it debt has left The Walt Disney Company with an ownership stake of 76.7% of Euro Disney S.C.A. Saudi billionaire Prince Alwaleed bin Talal owns 10% of the shares, which leaves 13.3% of the company owned by the public at large.  The Walt Disney Company today announced that is has entered into a share swap agreement with Alwaleed to take 90% of his shares (9% of Euro Disney S.C.A.) in exchange for Disney stock.  Now that The Walt Disney Company owns 85.7% of Euro Disney S.C.A, it wants to buy the rest in order to take full control of Disneyland Paris. According to EU finance laws, once Disney owns 95% of the shares, it can delist them from Euronext Paris stock exchange, effectively giving it full control of the company.

The new plan “affords maximum flexibility to shareholders, addresses the group’s financial needs and reflects its ongoing support for the long-term success of Disneyland Paris,” Disney said. To this end, Disney said it will support Euro Disney’s recapitalization to the tune of 1.5 billion euros. This follows a 2014 rescue plan in which Disney committed to at least 1 billion euros over 10 years.

Disneyland Paris racked up a net loss of 858 million euros (over $900 million) in 2016 after the terrorist attacks in Paris in late 2015 led to a downturn in the tourism industry across France.  Additionally, the European economy hasn’t been been kind to businesses across the continent.  In 2015, the company recorded a net loss of 102 million euros.  The financial saga of Euro Disney is frequently discussed in most writings about the resort, including the recently released “Building Magic – Disney’s Overseas Theme Parks” and the earlier “Once Upon an American Dream: The Story of Euro Disneyland“.

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Patrick Hackett
3 years ago

Prince Alwaleed fabulous heed. Very interesting development.

ScroogeMcDuck
ScroogeMcDuck
3 years ago

i mean that sounds great, but it sounds like they would be investing more money into the overseas parks and say ignoring Epcot…AGAIN.

Nyx
Nyx
3 years ago
Reply to  ScroogeMcDuck

What are they supposed to be doing to Epcot? It’s not like it needs a massive overhaul, just a little updating here and there. Realistically Disney has enough money to do both if they wanted to.

Ken
Ken
3 years ago

Shut it down and spend money on DL and WDW. New parks overseas are getting all the attention while state side parks are in need of rehab.

Pierre
Pierre
3 years ago
Reply to  Ken

Sucer ma baguette cochon d’Amérique!

Disney Pete
Disney Pete
3 years ago
Reply to  Pierre

If you cared for that park, you would have visited more often

disneyjt
disneyjt
3 years ago
Reply to  Ken

People like you frustrate me, You can’t see pass the idea that only the “american parks” are worth spending money on. The overseas parks are just as important, especially when Tokyo Disney Sea is considered one the best theme parks in the world. Shanghai is open and has some of the most advanced Disney rides ever created. Paris is a beautifully crafted version of the magic kingdom with touches of originality such as Discoveryland instead of Tomorrowland. Hong Kong is also a terrific disney resort. When people like you complain of their investment it just reeks of bitterness and jealousy.… Read more »

Mick
Mick
3 years ago

Euro Disney should have been in somewhere warm like Spain or Portugal. The weather (and the french attitude) wasn’t right for the park.

Natalie Fantuzzi
3 years ago
Reply to  Mick

I AGREE! I live in Marbella, southern Spain, and it should have been built here where we have an avarage of 300 days of sunshine a year. Instead they build it in cold France where everyone is grumpy! Been there twice! Been to Disney Orlando 10 times.

Monica Askew
Monica Askew
3 years ago

Close it down . Invest the money here at the US parks WDW and DL

ScroogeMcDuck
ScroogeMcDuck
3 years ago

The few times I’ve been to DL: Paris has been fun. I’ve enjoyed a lot of the the more unique rides there. I do hope to see improvement there and obviously hope to see major improvement to WDW and DL.

Philippe von McStuffins
Philippe von McStuffins
3 years ago

Assurez-vous que je décompresser ma mouche pour vous!

Kat
Kat
3 years ago

Shut it down and move attractions to a new park in Brazil! This will solve the overcrowding problem in WDW Florida!!! PLEASE consider

Nyx
Nyx
3 years ago
Reply to  Kat

Have you seen how much crime & poverty Brazil has? Keep dreaming.

marnie Plunkett
marnie Plunkett
3 years ago
Reply to  Kat

Brilliant idea!! I hear their economy is awful though…so not sure if they could sustain a park. I love the idea though!

Gareth
Gareth
3 years ago

The amount of people here calling it to be shut down is ridiculous. All parks offer unique experiences – and not everyone can afford to go to the State side parks.

WWWD (What Would Walt Do?)
WWWD (What Would Walt Do?)
3 years ago

Disney needs to either just tear it down or sell it off entirely and admit they made a mistake building it in the first place. Oh and stop building new parks entirely.

Dee
Dee
3 years ago

I’ve been to both WDW and DLP. Disney Paris is far better than the Florida park. Disney Florida was such a let down for us, dowdy and underwhelming. Disney Paris was wonderful, better rides and magical. Please keep it going.

Nyx
Nyx
3 years ago

Ugh, to all the people saying it should be torn down, no they shouldn’t tear it down. It would be nice if they left it open so that Europeans have a more cost effective option, rather than flooding the US parks with even more visitors. Just because Disney is spending money on Disneyland Paris doesn’t mean they don’t have money for the US parks. Disney isn’t poor, they net billions in profit a year. They’re more than just theme parks, and just because they spend money on one park doesn’t mean they can’t afford to invest more in other parks.… Read more »

Disney Pete
Disney Pete
3 years ago
Reply to  Nyx

You clearly don’t know the story of Disneyland Paris and how many projects were canceled in Orlando because of it. Call Michael Eisner and ask him. I bet he’ll be thrilled to tell you.

disneyjt
disneyjt
3 years ago
Reply to  Disney Pete

disneypete projects are cancelled constantly for a number of reasons financing included. shanghai went over budget, which would’ve took money from other resorts as well, going to complain about that too? The fact is people need to stop looking at DLP as the black sheep they want to get rid of just because of their financial issues. In fact a lot of DLP issues were caused by disney themselves. Over ambitious visitor numbers, building over SIX hotels for a one park resort when no more than two-three would’ve been needed. Eisner’s unsurprisingly has always been quiet around this subject when… Read more »

Jan
Jan
3 years ago

All those salty Americans asking to shut it down, lol. It’s never going to happen and considering that, buying it out to finally fix it is the best option long-term.

Colin Maddocks
Colin Maddocks
3 years ago

The park shouldn’t be shut down. Buying it out entirely will allow Disney full control to fix it. Unless you think WDW and DLR can accommodate 13 million more people a year? I adore DLP. It’s “my” park. I’m glad Disney finally realise that the park will work without the crippling debt, and are now working to pay it off.

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