With reports arising about deep financial losses and even a potential extension of current park closures, things are looking more and more volatile for The Walt Disney Company, and a new statement released by the company to the Securities and Exchange Commission today confirms that the company has in fact hit hard times due to the sudden hit of the Coronavirus (COVID-19) pandemic.
According to CNBC, Disney is warning investors that the Coronavirus pandemic has affected so many of its business segments that it’s becoming more challenging for the company to estimate its future performance:
“We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts,” the company said in a filing with the Securities and Exchange Commission Thursday.
“In addition there has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content,” the company said.
Yesterday, it was reported that with Disneyland closed, the financial impact could mean a $400 million loss for Southern California area hotels, restaurants, and the overall tourist economy in the area––and that’s just based off of the estimated 18-day Disneyland closure period alone. In terms of projected recovery time for the company, The Walt Disney Company said this in the SEC note:
“We expect the ultimate significance of the impact of these disruptions, including the extent of their adverse impact on our financial and operational results, will be dictated by the length of time that such disruptions continue which will, in turn, depend on the currently unknowable duration of the COVID-19 pandemic and the impact of governmental regulations that might be imposed in response to the pandemic. Our businesses could also be impacted should the disruptions from COVID-19 lead to changes in consumer behavior. The COVID-19 impact on the capital markets could impact our cost of borrowing. There are certain limitations on our ability to mitigate the adverse financial impact of these items, including the fixed costs of our theme park business. COVID-19 also makes it more challenging for management to estimate future performance of our businesses, particularly over the near to medium term.”
As a reminder, the latest CDC guidelines recommend against public gatherings of over 50 people for the next 8 weeks, which could very well extend the closure past April, despite it only applying to certain businesses.
We’ll be keeping our eyes on developments here in Florida and in California, as well as in Paris, and Tokyo, Shanghai, and Hong Kong regarding the COVID-19 pandemic’s effect on Disney Parks operations and beyond. For all of the latest Coronavirus-related Disney Parks news throughout the ongoing pandemic, continue to check here.
A sale to Apple sounds more and more feasible.
Wonder if Iger stepped down to broker the deal?? He was on Apple’s board at one time recently.
Could we see Apple buy the “content,” while Universal buys the parks? Just think about that… a Skyliner between Disney and Universal!!!
ESPN goes to XXX Sports, NBC, ABC, Fox, etc, etc.
There is no way on God’s green earth that Universal will be buying Disney’s theme parks!
Yeah, let’s hope not, where would Universal get the money? They will be no less broke out of this.
Praise God
Right now Universal isn’t exactly a bastion of success itself
Don’t mind Frank. He has the Coronavirus. It mentally blocks you from making rational thoughts.
All that debt from Fox deal with no time to re-coop the money from the revenue is killing them. I hope the closures don’t have to go into May because that could be the steak to the heart. And because I’m supposed to go then… I’m so selfish. lol
How exactly are they not recouping the revenue on what they spent on Fox? They have Disney+ which is where some of that content resides. If they think it would make a difference to sub numbers, they can throw up any and all they have not under exclusive agreement elsewhere. They have sold off the sports networks they were required to when they purchased Fox so presumably they have or will have that money. It isn’t like they just opened a Fox related theme park and it had to shut down one week in.
If you just mean they haven’t had time to recoup the amount they spent, ok. But as far as the Fox acquisition itself, where you find those properties is still up and very much running unless I’m missing something.
I’m supposed to go in July.. I get it haha
You just keep doing the best you can. I know you can get back on your feet Disney! Walt would want you guys to keep believing you can keep going.
The Walt Disney Company will prevail through these difficult times, as it has through every difficult time before. The question is just how much of a hit it will take, and how long the recovery process will be…
If they discounted hotels and ticket prices over the summer, I’d go!
Thank You. Yea when disney owns half or more of Everything of course. Im worried. I still want to go to disneyland Again. Be Kind to each Other ! ONE Love 💞
Disney has plenty of money stored up and it’s not going anywhere. With Cheaprak in charge, they will cut services, employee benefits and raise prices (again). Also, they will slow down on projects, but the company will be ok. We should be more concerned for the small business like the non-Disney restaurants that depend upon park visitors.
I think they’ll be re-opening on April 1st but limiting the amount of people at hotels and in the parks. Capitalism always wins
You would think of all the money they make from over charging they would have a rainy day fund. I, for one, do not feel sorry WDWE in the least.