Back in March, the Walt Disney Company took out an additional $6 billion dollars in debt to protect its financial future.
Cinderella Castle at Night
And according to Deadline.com, Disney has just taken out more loans totaling $11 billion dollars.
On a recent earnings call, Disney outlined with stockholders just how devastating just the first two weeks of the temporary park closures have been for the company, estimating its total loss of revenue generated from in-person guest experiences at almost $1 billion.
Mickey Waffle at Magic Kingdom
This figure also includes the operational losses which resulted from the Disney Cruise Line shutting down, but not Walt Disney Studios — which despite the recent closures, made a profit of $2.54 billion when compared to last year’s second quarter.
Liberty Belle Riverboat at Magic Kingdom
In fact, the Walt Disney Company turned a profit of $18.01 billion for its second fiscal quarter, but that doesn’t mean the company isn’t interested in reestablishing a better foothold for itself. Now Disney has just successfully raised an additional $11 billion dollars in loans to add the $38 billion in debt it’s was already carrying at the close of last year.
Magic Kingdom
“We believe that the cash on hand and bank facilities will be more than adequate to meet all the company’s needs at this time and this transaction will only further bolster the company’s solid liquidity position which is important financial insurance since the crisis duration and economic knock-on effects are still unknown,” Moody’s analyst Neil Begley told Deadline.
Cinderella Castle
Disney CEO, Bob Chapek, says it’s still too early to predict when Disney World and Disneyland would re-open, but as of last week, we do have confirmation from Disney that several third-party restaurants will start to re-open in Disney Springs on May 20th with more restaurants now accepting reservations starting June 1st.
See the full list of restaurants we’ve confirmed are reopening in Disney Springs on May 2oth here!
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It’s REALLY hard to believe that Disney has to take out LOANS like this. They’ve made so much money over the decades on their fan base. If there’s a number after 999 billion dollars, that’s what Disney has made. It doesn’t make sense that they don’t have enough money in the bank in order to cover themselves during this time. I think the CEO needs to sit back and take a look at where their money is going. They’ll take out loans and then fans will be the ones paying it back for them. It’s negligence for them to have made so much money to not have enough to get by during this pandemic worldwide. I would love to see their financials. This is really unacceptable.