Disney World Valuation

In: Business and Management

Submitted By YUKI900204
Words 603
Pages 3
Financial report issues and analysis
09/18/2013

Valuation of the Walt Disney Company
The Walt Disney Company is an American media and entertainment Company and also the largest media conglomerate in the world. Disney was established by Walt and Roy Disney in 1923 as the Disney Brothers Carton Studio in the early stage and become a leader in the American animation industry before they diversified their business into live-action file production, television and travel. In 1986, Disney expanded their business into theater, radio, music, publishing and online media. Nowadays, Disney owns and operates in media networks, parks and resorts, studio entertainment, consumer products and interactive media in the worldwide. They created many well-known Disney cartoon characters on their movies, such as Mickey Mouse and Donald Duck.
Disney Empire was not built in one day, the Disney was very successful at turning fantasies into reality. They created the dreamer, the realist and the critic in their movies, they made the movie humorous and light-hearted. They’re targeting in children, teenagers and family-oriented parents, meanwhile, their audience are customers and movies are the best advertising for their cartoon character’s product. Disney expended their business into worldwide, they opened Disney Stores around the world, as well as amusement parks and resorts. In order to have Disney products available worldwide, Disney also authorized Licensees to resell their products, therefore, the Disney has ability to build tremendous brand recognition in the market and this is the reason Disney’s balance sheet boasts exorbitant amounts of intangible assets and goodwill. They continues to innovating and creating the best product to consumer. Their portfolio is so diversified also offers the company substantial…...

Similar Documents

Chase Manhattan Bank: Disney World

...MF 820: Management of Financial Institutions Hong Kong Disneyland Finance Ron Shell Jiang Jiang Zhaojie Wang On August 10th 1999, Disney awarded the sole mandate to Chase Manhattan Bank for the Hong Kong Disneyland financing of HK $3.3 Billion. We believe this decision was beneficial for both parties. For Chase, the rewards included underwriting fee, interest payments, being a part of a big loan-financing project in Asia and developing networks and relationships with Asian governments and companies. This outweighed the risks of underwriting risk, credit risk and long-term collateral risk. In addition, we believe it was the correct decision to initially bid to lose and then change this approach once there was concrete support from the HK government. From Disney’s perspective, despite Chase’s standard commitment letter leaving them slightly vulnerable, choosing Chase as sole mandate made the most sense. Due to the unique nature of the loan (extreme long term, Disney’s desire to use operating cash flow for expansion and the principal collateral being non-existent for first 2 years), it made sense for Disney to choose a company that has a strong relationship with and one that was extremely flexible on the structuring of the loan. Finally, we believe the most suitable syndication strategy is to be Chase as the sole mandate with a two-stage syndication process and sub-underwriting (exhibit 8a) Chase Manhattan Bank made a smart initial decision by attempting to bid to lose.......

Words: 1431 - Pages: 6

Firm Valuation

... Valuation of the Walt Disney Company The Walt Disney Company is an American media and entertainment Company and also the largest media conglomerate in the world. Disney was established by Walt and Roy Disney in 1923 as the Disney Brothers Carton Studio in the early stage and become a leader in the American animation industry before they diversified their business into live-action file production, television and travel. In 1986, Disney expanded their business into theater, radio, music, publishing and online media. Nowadays, Disney owns and operates in media networks, parks and resorts, studio entertainment, consumer products and interactive media in the worldwide. They created many well-known Disney cartoon characters on their movies, such as Mickey Mouse and Donald Duck. Disney Empire was not built in one day, the Disney was very successful at turning fantasies into reality. They created the dreamer, the realist and the critic in their movies, they made the movie humorous and light-hearted. They’re targeting in children, teenagers and family-oriented parents, meanwhile, their audience are customers and movies are the best advertising for their cartoon character’s product. Disney expended their business into worldwide, they opened Disney Stores around the world, as well as amusement parks and resorts. In order to have Disney products available worldwide, Disney also authorized Licensees to resell their products, therefore, the Disney has ability to build...

Words: 603 - Pages: 3

Disney World

...change. More and smaller country towns are becoming populated. The same reason that small towns located outside the D.C. metro area are becoming extinct. Areas like Haymarket Virginia, which barely used to be a blip on the radar is now a community that holds over 100,000 new residential homes .The group of environmentalist that were so adamant to get rid of Disney, a company that only wanted to commemorate the History of the United States, now has to deal with new and pricier residential homes. I think that as a manger, of any company, I would have tried to let residents of Haymarket and surrounding communities know the long term effects of this business venture. Things like, if Disney Corporation does not build here someone else will and not only will they build but that site will not recognize the legacy of American history. Looking back at all this, I think that either way, Virginia and Disney are better off. For reasons like, no matter what traffic in Northern Virginia is and will always be there. I don’t think that Americans are completely ready to have a park that is dedicated to the hardships of its people. For Disney, with having over 17 million people who visited the Magic Kingdom in Florida in 2007 not being in Virginia keeps the doors open to Disneyland and Disneyworld open to new adventures while still being the hot commodity that they are known for....

Words: 274 - Pages: 2

The Not so Wonderful World of Euro Disney

...Euro Disney SCA formally launched its theme park to Europeans in April 1992 near river Marne, 20 miles East of Paris. It was the biggest and most lavish theme park that Walt Disney had built bigger than any of its Disney parks around the world. The location was chosen over 200 potential sites in Europe from Portugal through Spain, France, Italy and Greece. Disney Management expected Europeans to receive the theme park in the same behavior that their Japanese counterparts for Disneyland-Tokyo did for Mickey Mouse and other famous Disney characters but, in 1992, amount of visitors reached only 9.2 million and spent 12% less on purchases than the estimated $33 per head, and the projected attracting 11 million visitors and operating of S100 million during the first year of operation became a loss of $900 million by summer of 1994 since opening. Development Crisis looms and rescue was put on October 1994. The park's name was officially changed from Euro Disney to "Disneyland Paris", in order to more closely link the park with the romantic city of Paris, and to disassociate itself with the poor reputation that has become linked with the phrase "Euro Disney". The tide turnaround in 1996, Disneyland Paris became the most visited tourist attraction in France with 11.7 million (increase 9% from the previous year), being one of Europe's leading tourist destinations. Later entering Hong Kong, although, Disney was determined not to make the same cultural and management mistakes in China......

Words: 299 - Pages: 2

Informative Disney World Speech

...Disney World Introduction Disney World has always been known as the happiest place on earth. I went there as a kid annually and haven’t forgotten the wonderful experiences and memories that have taken place there. I have researched the history and creation of this magical place, and have uncovered some secrets that are foreign to many. Many people have heard of Disney World and some have even visited there. But do these people know the many secrets that lie hidden. Disney World has touched the hearts of kids and adults for more than 50 years. The main points in which I would like to inform you on are the history, layout and marketing aspects of Disney and how they create such a welcoming and enjoyable experience for people of all ages. The aspects of disney that make it such a wonderful experience and create lifelong memories are the amazing marketing skills, creative layout of the attractions and the classic history behind the making of Disney. Body I. History of Disney World 1. Conception - Where was the idea conceived? Was Disney World planned, or did it evolve? 2. People Involved 3. Opening Day 4. Disney World Today Il. Physical Layout 1. Location in World/US/Region/State/ a. Access - How do people get there? b. Accommodations - Hotels, Restaraunts, 2. Park Layout a. Rides b. Attractions Ill. Marketing 1. Sell More to Existing Customers-
While at the Walt Disney World theme parks you are continuously offered other......

Words: 425 - Pages: 2

Walt Disney

...WALT DISNEY PRODUCTIONS, JUNE 1984 One of the best examples of service through people is Walt Disney Productions… How Disney looks upon people, internally and externally, handles them, communicates with them, rewards them, is in my view the basic foundation upon which its five decades of success stand. —Peters and Waterman, In Search of Excellence In Search of Excellence didn’t simplify enough! In the private or public sector, in big business or small, we observe that there are only two ways to create and sustain superior performance over the long haul. First, take exceptional care of your customers via superior service and superior quality. Second, constantly innovate. That’s it. There are no alternatives in achieving long-term superior performance. Financial control is vital but one does not sell financial control. —Peters and Austin, A Passion for Excellence Ron Miller, president and chief executive officer of Disney Productions Inc., pondered the essence of his dilemma. For the past two-and-a-half months, his company had been the subject of a takeover attempt by Saul Steinberg, a well-known raider. The attempt had started innocently enough with the announcement of the purchase of 6.3% of Disney’s outstanding common stock. In subsequent announcements, Steinberg’s holdings rose to 12.1%. When Steinberg announced his intention of acquiring 25% of Disney, Miller undertook a series of evasive actions, including the purchase of Arvida Corporation for...

Words: 1252 - Pages: 6

Disney World

...The Walt Disney Company Assignment 1: Assignment 1: Strategic Management And Strategic Competitiveness Professor: BUS 499: Business Administration Capstone April 20th, 2014 The Walt Disney Company The Walt Disney Company started in October 16, 1926. It was at the time known as The Disney Brothers Studio. It was established by Roy and Walt Disney. The company rapidly began to expand and introduced the world to Mickey and Minnie Mouse. They are the image of the Disney Company. During the 1940’s Disney issued its first stock, this made it growth as a company. The Disney Company expanded to the world of television and written entertainment with the opening of a theme park. Disneyland was opened on July 17, 1955. Walt dream was to open different theme parks in a big area. He chose Florida because of the nice weather; the inexpensive land; and the interstate 4. Unfortunate, Walt Disney, died on December 15, 1966. Despite the loss of Walt, Disney Company continued to grow. And in October of 1971, Walt Disney World Resort opened in Orlando, Florida. (Disney History) Globalization and technology changes have impacted The Walt Disney Company in positive way. According to Strategic Management, “globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital and knowledge across country borders.” ( Hitt, Ireland & Hoskisson, 2013). Globalization also increases the......

Words: 1938 - Pages: 8

Disney

...part of the growing up. Disney Enterprises, Incorporated is one of the largest entertainment giants in the world. Walter Elias Disney began his career as a cartoonist in 1928 when he created one of the most famous characters ever, Mickey Mouse in a cartoon short entitled Steamboat Willie. His original Kansas City studio failed in 1923 so he opened a new studio in Hollywood, which he named The Walt Disney Company. In his career he introduced the first full-length animated feature cartoon Snow White and the Seven Dwarfs in 1938. Other early feature cartoon classics includes Dumbo in 1941, Bambi in 1942, and Alice in Wonderland in 1951. In the 1950's, Disney started making movies. Some include Treasure Island and 20,000 Leagues Under The Sea. Disney then opened amusement parks. Disneyland opened up in 1955 in Anaheim, California. Walt Disney World, another Disney character theme park opened in Orlando, Florida in 1971. Disney then produced Broadway shows like Beauty and The Beast and the Lion King The entertainment industry companies' unpredictable and fiercely competitive nature in regards to their various products kept Disney’s on their toes as they realized they needed to put their eggs in more than just one basket. When a company like Disney is able to offer a wide range of films, music, toys, clothes, and other products to consumers and potential customers, it brings in many different types of revenue. When a company like Disney can offer products......

Words: 382 - Pages: 2

Disney

...Professor Jung Wan Lee MET AD655 ABSTRACT The Walt Disney Company (NYSE: DIS) is a diversified and worldwide family entertainment company with operations in five distinct business segments: Parks and Resorts, Studio Entertainment, Media Networks, Interactive, and Consumer Products. For almost 90 years, the company has used its creative content to inspire, enchant, and entertain its global audience. The company operates in more than 40 countries, employs approximately 156,000 employees, and hires cast members from around the world (Global 500, 2013). Its top three industry competitors are Time Warner, Viacom, and CBS. The company reported revenues of $42.3 billion in 2012 and ranked 66th on the Fortune 500 list that year (Walt Disney Co/The, 2013). As a multinational company, the Walt Disney Company has become a popular name in many households around the world. This paper will analyze Disney’s international business environments and its global strategies, and explore other opportunities the company should take advantage of in order to strengthen its title of being a world leader in family entertainment. COMPANY OVERVIEW What is the business? The company was founded on October 16, 1923 by Walt and Roy Disney and was originally known as the Disney Brothers Cartoon Studio. The company started off as animation and production company, and became a leader in the American animation industry when it introduced Mickey Mouse to the world in 1928. Capitalizing on the success of......

Words: 4944 - Pages: 20

Valuation

...Aswath Damodaran 1 VALUATION   Cynic:  A  person  who  knows  the  price  of  everything  but  the  value  of  nothing..   Oscar  Wilde   First  Principles   2 Maximize the value of the business (firm) The Investment Decision Invest in assets that earn a return greater than the minimum acceptable hurdle rate The Financing Decision Find the right kind of debt for your firm and the right mix of debt and equity to fund your operations The Dividend Decision If you cannot find investments that make your minimum acceptable rate, return the cash to owners of your business The hurdle rate should reflect the riskiness of the investment and the mix of debt and equity used to fund it. The return should reflect the magnitude and the timing of the cashflows as welll as all side effects. The optimal mix of debt and equity maximizes firm value The right kind of debt matches the tenor of your assets How much cash you can return depends upon current & potential investment opportunities How you choose to return cash to the owners will depend on whether they prefer dividends or buybacks Aswath Damodaran 2 Three  approaches  to  valuaEon   3 ¨  ¨  ¨  Intrinsic  valuaEon:  The  value  of  an  asset  is  a  funcEon  of   its  fundamentals  –  cash  flows,  growth  and  risk.  In   general, ...

Words: 7160 - Pages: 29

Disney

...Elias Disney, established himself as a legend in the cartoon industry. His by products have become a genuine part of the American culture. Walt Disney has had a profound effect on many people and will continue to have for many years to come. In 1901, on December 5th in Chicago, Illinois, Walter Elias Disney was born to Elias and Flora Disney. Even though he loved to draw, moving to a farm near Marceline, Montana in 1906 is probably what influenced his later creations. His first drawings were creations of farm animals. At the age of sixteen his family returned to Chicago where he attended McKinley High School. His real interests were at night when he took courses at the Chicago Academy of Fine Arts. He enlisted in Military service during World War I, but was rejected because of his young age of sixteen. He then joined the Red Cross where he spent a year overseas driving an ambulance. The exterior of his ambulance was covered all over with his cartoon drawings. After World War I, he returned to Kansas City, where he began his career as an advertising cartoonist. Here, in 1920 he created and marketed his first original animated cartoons. A few years later, he perfected a new method for combining live-action and animation. In Kansas City, Missouri, Walt Disney met animator, Ub Iwerks and composer Carl Stalling, whom later became important to his future success. Unfortunately, the company that they had started soon went bankrupt. In August of 1923, Walt Disney left......

Words: 1083 - Pages: 5

Disney

...Zanercik Scope of Global Operations The Walt Disney Company has a global footprint that spans across the whole world, which includes business operations in over 40 countries with 180,000 employees from a variety of cultures (disneycareers.com, 2015). These operations consist of services and products, whose iconic characters and brands are as well known by a person from India, as they are by someone from the U.S. In 2013, APCO Worldwide, an independent communications consultancy, conducted a study of 70,000 consumers in 15 major international markets. These consumers were asked questions which measured their emotional feelings towards 600 well-known brands. After all was said and done, it turned out that Disney was the “World’s Most Loved Brand”(Heine, C., 2013). Disney has likely become a household name throughout the world due mainly to their themed resorts, made up of 11 different theme parks, e.g. The Magic Kingdom, Animal Kingdom, etc. There are a total of five resorts throughout the world, two in North American, one in Europe, and two in Asia with a sixth currently under development in Shanghai, China. Revenues from these five resorts alone accounted for 14.1 billion in revenue (2.2 billion in profit) in the year 2013; an increase of over 8% from 2012 (Mitra, S., 2013). With revenues such as these, one can only assume that the global footprint Disney sustains is a very lucrative one. Theme parks may be what Disney is most known for, but their highest grossing......

Words: 1494 - Pages: 6

Anaylsis of Disney World

...The Walt Disney Company MBA 648 Company Research Project Megan Burke, Candace Longo, Irini Pertesis Table of Contents Executive Summary3 Products and Services4 Financial Planning and Analysis6 Operating Performance of the Firm6 Financial Statement Analysis 7 Financial Forecasting………..………………………………………….…………………...11 Sustainable Growth Rate………...………………………………………………………....13 Additional Funds Needed…………………………………………………………………...13 Cost of Capital……………………………………………………………………………….14 WACC………………………………………………………………………………………..14 Dividends and Stock Policies………………………………………………………………….15 Objectives of Business Corporations 16 Working Capital Management: 19 Cash and Marketable Securities Management: 21 Accounts Receivable Management…………………………………………………………….26 Financing Activities…………………………………………………………………………...26 Overall Analysis………..……………………………………………………………………….27 Executive Summary “I knew if this business was ever to get anywhere, if this business was ever to grow, it could never do it by having to answer to someone unsympathetic to its possibilities, by having to answer to someone with only one thought or interest, namely profits. For my idea of how to make profits has differed greatly from those who generally control businesses such as ours. I have blind faith in the policy that quality, tempered with good judgment and showmanship, will win against all odds.”—Walt......

Words: 7420 - Pages: 30

Valuation

...conglomerates by acquiring firms in other lines of business. In the 1980s, corporate giants like Time, Beatrice and RJR Nabisco were acquired by other firms, their own management or wealthy raiders, who saw potential value in restructuring or breaking up these firms. In the 1990s, we saw a wave of consolidation in the media business as telecommunications firms acquired entertainment firms, and entertainment firms acquired cable businesses. Through time, firms have also acquired or merged with other firms to gain the benefits of synergy, in the form of either higher growth, as in the Disney acquisition of Capital Cities, or lower costs. Acquisitions seem to offer firms a short cut to their strategic objectives, but the process has its costs. In this chapter, we examine the four basic steps in an acquisition, starting with establishing an acquisition motive, continuing with the identification and valuation of a target firm, and following up with structuring and paying for the deal. The final, and often the most difficult, step is making the acquisition work after the deal is consummated. Background on Acquisitions When we talk about acquisitions or takeovers, we are talking about a number of different transactions. These transactions can range from one firm merging with another 1 2 firm to create a new firm to managers of a firm acquiring the firm from its stockholders and creating a private firm. We begin this section by looking at the different forms taken......

Words: 21338 - Pages: 86

Disney World and Crime Prevention

...There are many reasons for which Disney World is a good example of crime prevention through environmental design. Barriers, pavement markings, magical fountains and friendly live security are just a few reminders of the purpose of the place: fun and laughter. People who go to the fairy tale world do so governed by their own free will. They give consent to being controlled by Mickey Mouse laws and to be guided like mindless peons through Goofy and Pluto lane. Unfortunately, even in a world filled with magical wonders, there will always be evil characters who are tempted by the dark side of nature as well. Fictional or not, places where opportunities for committing crime and/or people who are willing to commit it will continue to spread or relocate. Situational crime prevention will not have much significance in today’s society unless all individuals and communities work together in an educated fashion. Although there are instances where situational crime prevention and crime prevention through environmental design work well, they do not attain the aspired results when looking at them from a larger perspective. Is it possible to lessen crime through these measures in a society that is so concerned with ethics, personal freedoms and that is divided into numerous economic, racial, and sexual orientation inequalities? I will argue that situational crime prevention and crime prevention through environmental design cannot be effective and ethical at the same time for the reason that...

Words: 1978 - Pages: 8

Без следа / Без вести | Learning Scala Programming | Hcs 457 Week 4 Communicable Diseases Paper