As first reported by Bleeding Fool and Itch Bacca, Disney insider WDW Pro claims that The Walt Disney Company, which has been devasted by shutdowns in the United States and China during the Coronavirus outbreak could be selling off some major assets in an effort to raise cash.
According to WDW:
The Disney company is currently hurting for cash, and not by a little. The absolute destruction of the global film industry means that Disney is losing billions and billions of usual expected revenues with no certain end in sight. Mulan has been pushed to the end of August, but even that still seems optimistic, and likely box office revenues may by as low as 20% of what it could have been. A burgeoning cold war with China likewise makes promoting the film an uncertain formula. The MCU is currently benched, live-action Star Wars is on pause, Indiana Jones 5 is more unlikely daily, and there’s simply no good path forward outside of the animation studios. Furthering the dearth of income, Disneyland was prepped to reopen at great expense, only to be indefinitely postponed yet again. The money to reopen Walt Disney World has been immense, but with increasing COVID infections in Florida, it seems more and more likely that increasing capacity will be a slow process, which means revenues for WDW will be lower than projected when the rush was approved to get the parks open fast. Adding to this, capex projects needing completing at WDW are substantial, more than ever in the past decade. The conflict has broken out inside Disney’s top levels with some pushing for continued spending in new projects, such as Splash Mountain reskinning, while others are extremely bearish with a view that Disney should hold every possible dollar.
With the company’s major money-making assets completely grounded due to COVID related shutdowns across the world, there is fear that Disney will be forced to sell properties such as ESPN and AMC to raise money. Disney’s financial troubles are far from over. WDW states that other problems are hurting the company such as potential layoffs, reclosing of theme parks, and shutdown of film production.