Warning: If you are Euro Disney fan, this might shock you so please take a seat before you continue reading.
Euro Disney’s share collapsed almost 20% when the company informed that they need EUR 1 billion funding deal (Financial times). The economic downturn has affected the company and their park attendance has dropped. The company said that their revenue dropped by 3 percent and their net losses rose to EUR 110-120 million.
Some background information about Euro Disney:
Location is twenty miles east of Paris.
They have Disneyland Park, Walt Disney Studios Park, Disney Village and seven on-site Disney Hotels. (Wikipedia)
Euro Disney was opened in 1992.
Paris’s Disneyland is Europe’s number one tourist attraction, says Tom Wolber, Euro Disney’s leader.
But finally some good news. If you got worried that you have to live without Disney World and Mickey Mouse in Europe, don’t worry because Walt Disney comes to rescue. Walt Disney already owns 40% of the Euro Disney but because of the new deal, it’s going to grow. The deal includes that Walt Disney will invest 420 million euros in cash in the Euro Disney group and swap their loan to the equity. (CNBC)
So that’s all for now, adios!