Walt Disney World started a two-week temporary closure earlier this week. The purpose of this closure is to help reduce the spread of a pandemic-level virus. Now analysts are warning that Disney’s Orlando theme parks might stay closed even longer. The analyst’s forecast Disney will stay closed until at least mid-April. They base this on the published reports of research firm MoffetNathanson.
Walt Disney World, Universal Orlando, and SeaWorld Orlando all implemented similar plans to close their theme parks until April 1st. But the Centers for Disease Control and Prevention (CDC) is advising against public gatherings of 50 or more for at least eight weeks.
”We expect this closure to extend for another two weeks into April as the country scrambles to get this virus contained,” said the analyst at MoffetNathanson.
The research firm also expressed concern over the economic consequences of this temporary closure. The Walt Disney Company stock was once as high as $150 per share, but now its hitting roughly $85.
These same analysts claim Disney could lose upwards of $1.4 billion in revenue over the next two quarters. This is rough to hear since Disney leveraged a higher-than-normal amount of debt to acquire Fox several months ago. Plus, the launch of the Disney+ streaming service meant that Disney entered a period of lower cash flow generation. These factors were taken into account when assessing Disney’s potential loss.
Many Disney fans are eager to return to the Disney Parks. We will provide updates when we learn the opening dates for Disneyland and Walt Disney World.
Source: Orlando Sentinel