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Technology Stocks : Walt Disney -- Ignore unavailable to you. Want to Upgrade?

To: VivB who wrote (1284)	12/14/1998 12:03:00 AM
From: VivB	Read Replies (1) \| Respond to of 2222

Disney Reorganizes Its Park Operations In Aggressive Plan to Expand Overseas By BRUCE ORWALL, Staff Reporter of THE WALL STREET JOURNAL December 14, 1998 Walt Disney Co. reorganized its theme-park operations under the command of Disney parks veteran Judson Green, laying the foundation for an aggressive attempt to expand Disney's presence in foreign markets, especially China. The reorganization for the first time consolidates under one manager all aspects of Disney's recreation and travel businesses. It combines the company's existing theme parks and resort operations with its Walt Disney Imagineering unit -- which designs the parks and rides -- and Disney Regional Entertainment, a new unit that has been developing Disney Quest arcades and ESPN restaurants in Baltimore, Chicago and other markets. Mr. Green, 46 years old, was named chairman of Walt Disney Attractions. He had been president of Walt Disney Attractions, and is one of several Disney executives who are strong contenders to one day succeed Disney Chairman and Chief Executive Michael Eisner. Mr. Green succeeds 43-year Disney veteran Richard Nunis, 66, who is retiring but remains a member of Disney's board for now and will serve as a consultant. Mr. Nunis had in recent years already handed off major responsibilities to Mr. Green. Pressler Succeeds Green Disney also named Disneyland President Paul Pressler, 42, to become president of Walt Disney Attractions. He will oversee the day-to-day operations of the various units, while Mr. Green will now focus on broader strategic issues. Mr. Green's first major task will be plotting the company's next phase of theme-park expansion, which is likely to include a much greater emphasis on foreign markets. Disney's current plans carry it through the planned 2001 openings of the California Adventure theme park adjacent to Disneyland in Anaheim, Calif., and the Tokyo DisneySea, a park and hotel complex in Tokyo. Disney currently has an interest in Disneyland Paris and receives royalties on revenue from Tokyo Disneyland, but Mr. Green said, "there are major parts of the world we are barely penetrating." Mr. Eisner has recently instructed executives in all of Disney's major businesses to begin planning to ramp up their overseas operations. China Looks Promising Mr. Eisner and other Disney officials were especially pleased by a fall trip to China, during which Chinese officials signaled that the government's problems with Disney -- which stemmed from the company's pro-Tibet movie "Kundun" -- have abated. "I think we came away as a company realizing that the relationships have vastly improved," Mr. Green said. "They are very interested, if not excited, about the possibility of us doing something there." But Mr. Green said Disney is also going to begin seriously looking at South America as the location of a future theme park, and may consider another European site as well. Disney is also toying with the idea that it could build scaled down versions of theme parks in some places that would have more regional appeal. Disney is beginning to do that in the U.S. with its Disney Quest arcades, which feature a lot of interactive games and rides in an 80,000-square-foot space. Domestically, some analysts have worried that Disney will have a hard time maintaining its growth, especially in the face of mounting competition in the key Orlando market from Seagram Co.'s Universal Studios unit. But Mr. Green said he is confident about continued growth in both the Orlando and Southern California markets. One way to keep the Walt Disney World resort growing, he said, is to continue Disney's recent effort to expand the number of foreign visitors. Foreign travelers now account for about 20% of attendance at the Orlando resort, but Mr. Green said he could imagine that growing to 50% in five years or more. Copyright December 14, 1998, The Wall Street Journal