Disney Shanghai discloses operation mode
Updated: 2011-08-11 15:58
By Qiang Xiaoji (chinadaily.com.cn)
Disney Shanghai will run under a new operation mode that will involve shared profits between Walt Disney Co and its local partner in China,said Tom Staggs, chairman of Walt Disney Parks and Resorts. The announcement was made during Staggs' visit to Shanghai four months after Disney's first theme park in the Chinese mainland broke ground, China Business News reported Thursday.
Industry insiders explain that the sharing mode is similar to the management of foreign hotels with light assets. In this mode, main investors tend to take risks and face the challenge of running and coordinating their separate ideas.
"The American company and its local partner, Shendi Group, will fund together for the construction of the Shanghai Disneyland theme park," said Staggs. A management company controlled by Walt Disney Co and two property owners held by Shendi will be established, according to Staggs.
A source close to the deal disclosed that 70 percent of the shares of the management company in charge of the operation of the Disney theme park is controlled by Walt Disney and 30 percent held by Shendi. The properties of the park and its facilities will be controlled by Shendi holding 57 percent of the shares and Walt Disney holding 43 percent.
"To put it in a simple way, Shendi provides funding and land, while Walt Disney offers funding and intellectual property. The two sides share the profits according to the shares they hold," the source said.
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