Disney Case Analysis

2939 Words12 Pages
Introduction: Key Players & Pressures Ron Miller, the President of Disney Productions, has asked us to help him find out what to do when dealing with corporate raider Saul Steinberg. Over the past two months, Steinberg has purchased a larger and larger portion of Disney stock with the probable intention of forcing Disney to greenmail him. Miller has, in the past few months, been trying to avoid this option by buying, or attempting to buy, two other companies. These companies, Arvida and Gibson Greetings, will cost Disney $200 million and $310 million in common stock respectively. Steinberg has retaliated and offered to buy 49% of the company for $67.50 a share and $72.50 a share if the purchase of Gibson goes through. Walt Disney Segments Disney sees itself as a “diversified international company engaged in family entertainment and community development” and has four main business segments: theme parks, films, consumer products, and real estate development. These segments are designed to be “interlocking pieces of a portfolio, each supporting the activities of another.” Theme Parks: The theme parks segment has parks in 3 different locations across the United States and in Tokyo. These parks sit on 28,000 acres of land valued at around $500 million, while Disneyland itself is only carried on the books at $20 million. This segment easily generates the most revenue and is the most valuable to Disney’s management for future growth as evidenced by EPCOT. The theme parks and resorts segment has been the subject of much of the focus over the past several reporting periods. The main problem seems to be the low or zero growth in attendance over the last decade while their competitors have grown by 5% annually. Analysts have a rather poor outlook for the future and view the market as fully saturated by 25 major theme parks already in existence. The main

More about Disney Case Analysis

Open Document