DISNEY’S (NYSE:DIS) LATEST SUCCESS: THE DISNEYLAND SHANGHAI
The deal which was made 10 years ago for the establishment of the Shanghai Disney Resort (NYSE:DIS) in 2015 is in its final stages of completion. However, the deal was disclosed during the last weekend. Moreover, some inside news suggest that the resort will be based on Disney’s Pixar (NYSE:DIS) produces animated film Toy Story. In fact it is planned that hotels will be built on giant Toy Story structures.
The resort is packed with exciting features that will attract the Disney (NYSE:DIS) fans. The resort will also contain another hotel based on a different theme, in fact it will be a new entertainment district named Disney (NYSE:DIS) town plus the one and only Shanghai Disney Land (NYSE:DIS). This will be a magic kingdom park based on the Disney (NYSE:DIS) theme. However, Disney (NYSE:DIS) will be holding only 43% of the theme park, while the rest of the 57% is in the property of China’s Shanghai Shendai Group. But analysts say that this small ownership by Disney (NYSE:DIS) is enough to make an impact on the main Chinese market which will result in high revenues from the middle class people.
Moreover, if we put aside the Berkshire Hathaway owned by Warren Buffett, we can see Disney (NYSE:DIS) is the second largest holder of different companies and brands. It is quite surprising when we look at how Disney (NYSE:DIS) started as a simple studio, but after years of acquisitions and takeovers we can see Disney (NYSE:DIS) as a worldwide entertainment giant. In fact, this popularity to Walt Disney (NYSE:DIS) was added after the most disliked CEO made some radical changes and bought the ABC company and brought about a lot of repute for the company.
The Pixar based theme park has a long story of acquisitions and purchases. This trend of Disney (NYSE:DIS) can be seen in most of its projects. The Pixar entertainment company (NYSE:DIS) was basically a division of the Lucas films. However, they saw excellent output from almost every film released and the company had to pay quite a significant amount to Apple (NASDAQ:APPL)’s CEO. The tech giant received almost $7.4 billion from the shares invested in Disney (NYSE:DIS) and somehow became Disney (NYSE:DIS)’s largest stock holder.
After acquiring Pixar, Disney (NYSE:DIS) thought of moving onto other small but successful revenue generating companies and finally saw Marvel as its target. The company had paid a reasonable 4 billion dollars amount to buy Marvel after the success of their 2009 released movie Iron Man. Moreover, Marvel came to Disney (NYSE:DIS) as a blessing when The Guardians of the Galaxy was a big hit on the box office and provided the company with excellent revenues. This success made Disney (NYSE:DIS) to cling onto Marvel. Finally to top it off Disney (NYSE:DIS) purchased Marvel’s former holder; the Lucas films.
This shows that how Disney (NYSE:DIS) is planning on its strategies to make more and more money from the brands they have owned. In fact, Disney (NYSE:DIS) has given everyone an idea of how a small entertainment company can become a revenue machine.