Remember when Disney announced that they were going to invest $60 billion into their theme parks, resorts, and Disney Cruise Line over the next 10 years? We now have a more specific breakdown about how that $60 billion will be utilized.
The latest update comes from a massive SEC filing (there’s more than 60 slides) that pushes back against activist shareholder Nelson Peltz and Trian Fund.
Below is the slide in question that covers the $60 billion investment Disney has widely discussed.
The chart shows that the $60 billion will be broken down as follows over the next 10 years:
- 50% invested into Parks and Resorts ($30 billion)
- 30% invested into Tech and Maintenance ($18 billion)
- 20% invested into Cruise / Other ($12 billion)
Disney notes that 70% of the planned $60 billion ($42 billion) is earmarked for capacity-expanding investments. That may come as a surprise to some who expected the entirety of the $60 billion to go directly toward capacity improvements at the theme parks.
We’re not too surprised to see a portion of the $60 billion going towards maintenance. It always seemed likely Disney was using the $60 billion figure to talk about all capital expenditures related to the parks and cruise ships, not just new expansions.
But, we are a bit curious about what Disney has planned for the ‘tech’ portion of that $18 billion. It’s possible it’ll just be used to maintain and gradually improve the apps, My Disney Experience, and other guest-facing technology. It’s also possible something else is in the works.
Now, we will continue to wait for Disney to finalize and formally announce new plans at their theme parks. The time for speculation, brainstorming, and saying what they could build is over. It’s time to get some of these projects underway.
