Green light for Disney’s Shanghai park

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shine

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Posted: Nov 04, 2009 - 11:58 AM
Post subject: Green light for Disney’s Shanghai park

Green light for Disney’s Shanghai park

By Matthew Garrahan in Los Angeles

Published: November 4 2009 01:34 | Last updated: November 4 2009 01:34

The Chinese government has approved an application from Walt Disney to build a theme park in Shanghai, paving the way for the media company to establish a foothold in mainland China.

With an estimated cost of $3.5bn, the park would be one of the biggest investments in China by an international company.
“China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney company in mainland China,” said Bob Iger, chief executive.

Disney already has a theme park in Hong Kong but has long coveted a park in Shanghai, viewing the city as a perfect entry point for the mainland Chinese market. It has been in talks with officials in China for a decade but made its first official application to construct a park this year.

A Shanghai park would raise the company’s profile in China, increasing its ability to cross promote and sell TV programming, films and consumer products that are based on its library of characters.

It is unclear what the ownership structure of the park will look like, although Disney has a track record of bringing in local partners in its other international parks. Reports this year suggested that Disney would take 43 per cent equity stake in the attraction with the Chinese owning the rest.

Disney operates theme park attractions in Paris and Hong Kong. There is also a Disney park in Tokyo, as well as better-established parks in California and Florida.

The Wall Street Journal reported in January that the attraction’s first phase would encompass about 1.5 square kilometers, including a theme park, hotel and retail outlets.

It is unclear when construction will begin. However, theme parks are difficult projects that take years to develop while costs can fluctuate in line with changes to the price of raw materials.

The approval comes two months after Disney agreed a $4bn deal to buy Marvel Entertainment, the comic book publisher that owns the rights to Iron Man, The Incredible Hulk and thousands of other characters.

Disney is also making a concerted push into international film production. It recently released its first Russian-language film and has plans to release local language films in India, China and South Korea.

“There is great interest and pride in local culture,” Bob Iger, chief executive, told the FT recently. “We are convinced that even though technology is breaking down borders between countries and cultures, we’re not seeing homogeneity of cultures.”

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bhbernstein

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Posted: Nov 04, 2009 - 02:59 PM

I can see the rides now:

It's a harmonious world

China first to Space Mountain

Pirates of the copy DVD

Snow White and the 7 KTV girls

It's A Bugs Life --- living in a Chinese restaurant

hammerforlife
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Joined: May 24, 2004
Posts: 3087

Posted: Nov 04, 2009 - 03:22 PM

I'm surprised there isn't a fake "Wang Disney" already in China.

CoffeeHawk_0
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Joined: July 14, 2005
Posts: 17977

Posted: Nov 04, 2009 - 08:05 PM

the average taxi ride is already an e-ticket ride.......

Pallanquin

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Joined: Nov 02, 2009
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Posted: Nov 04, 2009 - 11:01 PM

Interesting how the value of the project varies so much depending on which news source you read.

Today, in international online papers, I've read it as being worth USD3.5 bln, USD3.6 bln and USD4.0 bln. Top to bottom that's 'only' 14% difference.

But a local Chinese language paper today valued it at RMB10.4bln - that's 'only' USD1.5 bln, as much as 62.5% less than the foreign press estimates. The same local paper also reported that land values in the Chuansha area going up to around RMB18,000/sqm.

There's some big-ass Zhejiang style peasant palaces already going up along the new Jinhai lu extention. Perhaps a low key weekender for Milaoshu and friends.