Disney makes a bet on housing
Disney intends to offer vacation homes costing from $1.5 million to $8 million, The Wall Street Journal reported. Read WSJ story.
As the Journal pointed out, the nation’s foreclosure rate in Florida has been among the nation’s highest. In Orlando, home values have plunged from 50% to 60% from market highs, and Disney’s price scheme would place the houses near the top of the housing market there.
Disney targets the affluent
The company is planning a luxury vacation-home development in Disney World in Florida. Vacant lots go on sale this week.
Disney is making a daring move. Its top executive Bob Iger has won Wall Street’s trust, to a large degree, by making good on the Street’s earnings expectations. The toughest test for any chief executive, especially in the beaten-down media segment, to come through for the money managers.
The question is: Will this decision lead the way for Disney to try additional experiments outside of its traditional theme park, broadcasting or entertainment world?
Disney has its share of woes these days, especially in the television industry. ABC seems to be in danger of falling hopelessly behind NBC in the news business. In primetime, ABC has also had a tough time coming up with a plethora of hits in primetime.
Iger can only hope that Wall Street will continue to cut him slack.