Disney & Florida Planning New Development Agreement Worth Up To $17B, Would Add 5th Park At Walt Disney World

Core Points - Disney and Florida Governor Ron DeSantis are negotiating a new development agreement that could lead to up to $17 billion in investment from Disney over the next 10 to 20 years, including plans for a fifth park near Orlando [1] - The new agreement includes a minimum initial capital investment of $8 billion within the first ten years, focusing on infrastructure, new construction, and technology [2] - Disney is also committed to developing at least five major theme parks in Orlando and may convert hotel land use for additional office space, potentially relocating 2,000 staff from California [2] Group 1 - The new agreement will replace a previous 30-year development deal and requires a final vote to become official [3] - Disney has recently secured a similar agreement with Anaheim for Disneyland, allowing for mixed-use environments and new zoning permissions [3] - The company has announced a $60 billion investment commitment for its parks worldwide over the next 10 years, although specific details remain limited [3] Group 2 - Competition from Universal Studios, particularly with the upcoming $1 billion Epic Universe expansion, is influencing Disney's strategic decisions [4] - Disney CEO Bob Iger acknowledged awareness of Universal's plans and emphasized a strategic approach to capital deployment [4] - The Experiences division reported a 10% revenue increase to $8.4 billion, with operating profit rising 12% to nearly $2.3 billion in the latest quarter [4] Group 3 - International parks, especially Hong Kong Disneyland, contributed to revenue growth, while Disneyland faced challenges due to higher costs despite increased attendance [5] - The company anticipates flat growth in parks for the current fiscal third quarter, citing normalization of post-COVID demand and evidence of global moderation in travel [6]