Disney opens pocketbook to get Hong Kong Disneyland Expansion deal

Disney is serious about it’s pivot to Asia. It just spent an estimated $3.7 billion on opening Shanghai Disneyland and it has already announced a $1.41 billion dollar expansion of Hong Kong Disneyland. Alas, the financial aspects of that deal left some people in the Hong Kong Government (which owns 53% of the park) wondering if it was the best investment of their money.

There were some questions if this expansion would be good enough to increase attendance and spending by guests at the park. When Hong Kong Disneyland was originally opened, there were plans to add a second gate, but this expansion just adds new attractions in the Magic Kingdom style park.

To make the pill of investment a little less bitter for the Hong Kong Government, Disney has agreed to pay for half the $1.41B expansion. In exchange, the Hong Kong government will reduce its stake to 52% and Disney will be left owning the other 48%. Disney is also taking a haircut on some of the fees it earns for managing the park.

Variety has a bit more on the deal.

Digg This
Reddit This
Stumble Now!
Buzz This
Vote on DZone
Share on Facebook
Bookmark this on Delicious
Kick It on DotNetKicks.com
Shout it
Share on LinkedIn
Bookmark this on Technorati
Post on Twitter
Google Buzz (aka. Google Reader)