On Monday April 3, The Walt Disney Company's CEO Bob Iger announced the media and entertainment conglomerate plans to invest over $17 billion in its Disney World Park, in Florida, over the next ten years. Disney's domestic parks generated $6.07 billion of revenue in the first quarter of 2023, a 21% increase year-over-year. During the Walt Disney Company's recent shareholder meeting, Iger stated this investment will lead to the creation of roughly 13,000 new jobs as well as "attract more people to the state and generate more taxes". This announcement comes at a critical time for Disney, as earlier this year Florida State Legislature passed legislation that individuals on the board of the tax district which Disney World is located must now be appointed by Florida Governor Ron DeSantis, the latest development in a roughly yearlong back and forth between Disney and the state of Florida, which began after former Disney CEO Bob Chapek publicly opposed the new Parental Rights in Education Law signed by DeSantis. Current CEO, Bob Iger, believes this new legislation passed by the state of Florida is Governor DeSantis's way of punishing Disney for their stance on the Parental Rights and Education Law. "Our point on this is, any action that thwarts those efforts simply to retaliate for a position the company took sounds not just anti-business but anti-Florida", said Iger at the company's most recent shareholder meeting.
https://www.foxbusiness.com/markets/iger-reveals-disney-planning-17-billion-investment-walt-disney-world
7 comments:
Interesting article! I like how Disney is standing up for what their values are here and are investing more into them. It will be interesting to see how the Florida government responds to this new investment. I also like that the fans of Disney are being defended here too, this looks great for the company's brand and image.
Hello Connor,
This is really great news to hear for shareholders! In the last couple of years, COVID has troubled the revenue created by Disney. With that being said the stock value has underperformed. These new 13,000 jobs will have a great impact on the job rate of Florida but will also benefit Disney's profit/revenue. I am hopeful that Disney stock will be able to bounce back and have a breakout year.
Overall, good post.
Great article Connor! It's exciting to hear about Disney's plan to invest over $17 billion in Disney World Park over the next decade. The creation of 13,000 new jobs is a great boost for Florida's economy and it's impressive to see how much revenue the domestic parks have generated in just the first quarter of 2023. It's unfortunate that there has been tension between Disney and the state of Florida due to their differing views on the new Parental Rights in Education Law. I hope that the state of Florida and Disney can come to a resolution that allows for continued growth and success for both parties.
I'm honestly surprised that Disney is only investing $17 billion over the course of 10 years considering how profitable the park alone is as well as the fact that amusement parks are extremely expensive to build and insure. I am glad to see Disney continues to hold its ground on its political position and think this will ultimately benefit the park in terms of donations and other funding resources available to the conglomerate.
This is really interesting article. I like how Disney always has strong plans for what they are trying to pursue. With the new additions it can create 13,000 new jobs, that's amazing. I also think it's important that Disney is fighting for the community and standing in their values that they hold in regards to Parental Rights and Education Laws.
I like the initiative from the CEO. This investment will help maintain and further improve the park's infrastructure, attractions, and overall visitor experience, leading to increased revenue and profitability for the company. this investment will create around 13,000 new jobs, which will provide significant employment opportunities for people in the area, helping to boost the local economy. This announcement comes at a critical time for Disney, as it faces challenges from the state of Florida over its stance on Parental Rights and Education Law. By investing heavily in the park and creating new jobs, Disney is signaling its commitment to the state, which could help in resolving the conflict with the state government.
It will be interesting to see how this will impact Disney's future earnings and stock price. The decision to invest such a significant amount is given current economic conditions. The new jobs could be very beneficial for the economy. It will be interesting to see what will happen in the rest of 2023.
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