5 percent on its theme park and resort operations
The firm's objectives are to maintain industry leadership where it is held, and to pursue industry leadership in all activity areas where it is not held. Disney is the acknowledged leader in the theme amusement park segment of the recreation industry.
Euro Disney SCA, France is the joint venture owner of Euro Disneyland. The Walt Disney Co., holds a 49 percent equity position in Euro Disney SCA (Toy and Dwyer 52). The firm also provides management services for Euro Disneyland.
Euro Disneyland is a US$3.7 billion theme park located outside of Paris (Reina 31-32). The entertainment enterprise was patterned after the Walt Disney Company's successful theme parks in the United States.
The Walt Disney Company paid US$160 million into Euro Disney SCA for its 49 percent equity share of the venture (Toy and Dwyer 52). The public stock offering for the remainder of the equity position in Euro Disney SCA raised US$167 million. A consortium of 60 banks lent Euro Disney US$3.4 billion to complete the theme park.
Factors Underlying Euro Disneyland Problems
One of the major problems for Euro Disneyland was the assumption by The Walt Disney Company and other investors that American popular culture could simply be transported lock, stock, and barrel to France with non diminution of public interest and support (Toy 32). From the very beginning, the French public threw cold water on this pre