Quickly I found two articles on Reuters, which were affecting mostly Florida, but the news was huge, so that means problems. First article said that Disney cancelled plans for 1 billion USD campus in Florida, which will terminate 2000 jobs. It is very negative news, at least from my perspective, as it shows that company is vulnerable at the moment. Article wrote that the decision comes amidst an ongoing legal dispute between Disney and Florida Governor Ron DeSantis. Disney's parks chief, Josh D'Amaro, cited changing business conditions as the reason behind the reconsideration of the relocation plan. The proposed campus in Lake Nona was intended to be a hub for Walt Disney Imagineering and the Disney Parks, Experiences, and Products division, with an estimated expenditure of up to $864 million. Just a week prior to this announcement, Disney CEO Bob Iger publicly questioned Florida's commitment to the company's investments in the state. He highlighted Disney's substantial presence in Florida, employing over 75,000 people and attracting millions of visitors to Walt Disney World annually. Additionally, Disney had plans to invest 17 billion USD in expanding the resort over the next ten years. Too bad, that politics can also affect the company that much. If that is the reason.
Second article mentioned that Disney plans to close Star Wars themed hotel, which also did not make me feel any good, as I never had a chance to go check it because of Covid. The article wrote that less than two years after its opening, Walt Disney Co has announced the closure of its Star Wars-themed luxury hotel in Orlando, set to take place in September. The decision comes as part of Disney's cost-cutting measures across its entertainment and parks divisions. The two-night experience, known as "Star Wars: Galactic Starcruiser," debuted in March 2022 at Walt Disney World. While Disney did not provide a specific reason for the closure, it aligns with the company's efforts to reduce costs by 5.5 billion USD, in order to improve the profitability of its streaming TV business.
Given the bad news about the company, I decided not to invest right now. However, I will keep an eye on the stocks, as usually news about saving money and reducing costs has positive effect on the stocks.
Movement of Disney stocks in the last five years. (Source: Investing) *
* Past performance is no guarantee of future results.