Disney, Merlin, and Others May Bid on SeaWorld and Sister Parks

[Polynesian Dweller]

InBev as far as I have heard is not planning on selling the parks.

Not publicly stated but InBev is a brewer and it does that one thing well. It tends to sell off non-core assets when it buys another company and that means things that aren't part of brewing beer. So it seems likley that they will do so at some point.

The bigger question is how the theme parks might be sold off. Its not impossible that they might sell them in pieces and then Disney would definitely be interest I would think, but only in SeaWorld Orlando and the Dubai connection IMHO.

[GrumpyFan]

InBev as far as I have heard is not planning on selling the parks.

They have stated publicly that they have no interest in keeping/operating them.

[Polynesian Dweller]

They have stated publicly that they have no interest in keeping/operating them.

Missed that report but not surprising. When they bought Labatt's here in Canada Labatt's owned interests in the Toronto Blue Jays, the Toronto Argonauts (football) and TSN (The Sports Network). All non-core assets to a brewer and they were sold off pretty quickly and only the brewery components retained.

[Ian]

InBev as far as I have heard is not planning on selling the parks.

InBev May Sell US Theme Parks

Christopher Leonard

AP Business Writer / July 16, 2008

ST. LOUIS—When Anheuser-Busch executives announced a cost-cutting plan in June, they surprised analysts by not proposing to sell the company's amusement parks and entertainment holdings. Belgian brewer InBev is likely to be less sentimental.

Having agreed to buy the largest U.S. brewer for $52 billion, the "non-core assets" like Busch Gardens and SeaWorld seem likely to go on the market. InBev SA is known for acquiring new companies and aggressively slashing costs to pump up its bottom line.

[Grizz16]

And this is exactly why the Comcast takeover of Disney was such a bad idea. The same situation would have happened then - our beloved parks would have been sold to the highest bidder.

All Comcast wanted was ESPN and its various sister networks.

[Grizz16]

If they buy Sea World, I wonder if they'd relocate the facility to WDW. Constructing new buildings would certainly be pricey, but the ability to use it to drive additional hotel revenue and lengthen resort stays may very will make up for it over the next 10 years.

No, I don't think so.

Why on earth would they spend money to rebuild it elsewhere on top of what they spent to buy it? It's already in a tourist location, it don't have to be next door to the AK.

But, I hope Disney doesn't buy it.

[Pop Centurion]

It was more of the fact that whenever there is an oil spill, Sea World would be there. Whales or dolphins that had beached themselves, Sea World would be there. Manatees being harmed by boating accidents, Sea World was there.

A very large portion of Busch's income went to the animal rehabilitation efforts, and if Disney were to acquire them, they would have to match those efforts at the least, in addition to their own efforts with DAK.

That is what I think the a lot of the die-hard fanatics would complain about because there would be less money going to the improvement of the parks, building of attractions. They won't understand, or rather, be blind to the fact that Disney, if they purchase the parks, has to match what their predecessors did.

This is an excellent point and I agree completely. But if they could purchase the park and maintain the same efforts it would be a great addition. Just as long as they kept it from becoming Disney themed as mentioned. I mean logo's and such are fine but no Disney themed attractions. Also if it were included with the rest of the parks as a park hopper option with Disney transportation that would be awesome. Or at least give the option to add it on to your package similar to the water parks & more option.

[joelkfla]

Apparently, the story quoted is the only one that mentioned Disney as a possible buyer.

A story in another publication said there was no known source for that info, and the mention was possibly speculation by the reporter, or even a "plant" by InBev's bankers to raise the stakes.

That story said that Blackstone, which is also half-owner of the Universal parks, was a more likely purchaser. The stumbling block there is a contractual issue with GE, the owner of the other half of Universal.

BTW, the quoted article said that Busch owns dozens of theme parks across America. That statement puts the author's credibility in question.

[Mousemates]

BTW, the quoted article said that Busch owns dozens of theme parks across America. That statement puts the author's credibility in question.

Yeah I saw that too…I could only come up with about ten …3 seaworlds (orlando, san Antonio, San Diego) 2 Busch Gardens (Tampa, Williamsburg …very cute park by the way), Aquatica, Discovery Cove, Sesame Place, Adventure Island and Water Country….are there others?

[CaptainJessicaSparrow]

They actually own one of the Six Flags.

[JPL]

I can believe Disney has a team looking at the possibility of buying the parks but I don't think it will go much further than that. The big problem with pruchasing a chain of Theme Parks is rebranding them and dealing with existing contracts and agreements that are already in place. For Example they serve Pepsi at Sea World and Disney has an agreement with Coke this causes complications in deals like this. There are also various discount agreements, hotel agreements among other things in place. All of things have to be looked into to see how it would effect the core business in Orlando. While I can see the interest in the Orlanda Sea World property and parks, I don't see the interest in the other Sea World parks or the Busch Gardens Parks. While it might seem great to have Disney purchase these parks it's also a negative since it takes away more of the competition and the competition keeps them striving to stay on top and add new atttractions to the parks. I like that I have a choice and that the parks all offer a different a feel and experience I would hate to Sea World become Sea World with Nemo and Friends.

[Ian]

Bear in mind that there's no guarantee that all the parks will be sold off to the same company. InBev could most definitely split them up and sell them to the most interested parties with the best offer.

So it wouldn't shock me if Disney bought the Orlando parks and the other ones were sold off to other parties.

[Tekneek]

Even if these parks were to go on the market, I hope Disney doesn't even bid on any of them. No matter what the financial reports say, I am not convinced all is well when it comes to Disney's existing parks. I'd hate to see what would happen if they suddenly had to manage more parks. I'd rather have fewer done better than a bunch with questionable quality.

[Polynesian Dweller]

Bear in mind that there's no guarantee that all the parks will be sold off to the same company. InBev could most definitely split them up and sell them to the most interested parties with the best offer.

So it wouldn't shock me if Disney bought the Orlando parks and the other ones were sold off to other parties.

Absolutely agree! There is no reason that they have to be sold off as a unit. Some of the properties are going to be more profitable or strategic than others. Buyers will pick and choose what they want and see as a good fit for their current business, its pretty much standard in business and a part of the due diligence process required by boards and shareholders.

[rookie]

No, I don't think so.

Why on earth would they spend money to rebuild it elsewhere on top of what they spent to buy it? It's already in a tourist location, it don't have to be next door to the AK.

But, I hope Disney doesn't buy it.

I heard they were going to expand the monorail to Sea World to accomodate visitors

[Ian]

I heard they were going to expand the monorail to Sea World to accomodate visitors

They can't do that when they're spending all that money to build that new, super-secret, double hush-hush theme park in Luchenbach, Texas!

[Imagineer1981]

Disney will not buy Sea World. Its not on property #1 and it wouldn't financially be the right move. Being from St. Louis, the rumor is that its being sold as a package with Busch Gardens, so Disney doesn't need it, especially with Tampa having a Busch Gardens. Disney would be smart though to take advantage of this opportunity. Assuming a new owner comes in, they may or may not keep the quality up, and it could more like a Six Flags in a few years. Disney could then easily do a verion of Disney Sea complete with whales/dolphins/etc and maybe even have it be a land off of AK?

[Figaro]

The SeaWorld brand has a unique and rich history, and one that in my opinion has to be preserved. There has been long time rumors that Busch Entertainment was being put up for sale by Anheuser-Busch and it's been talk around the SeaWorld parks for a while. I've been more in the circle of SeaWorld parks than I have Disney, and there's a lot going on internally right now to preserve a lot of the management structure and operations structure so that the parks will fare as best as possible thru the transition either into a merger with an existing theme park network, or into an independent one. The hopes are that whatever company comes in doesn't at-least split the Florida parks, which are comprised of SeaWorld, Discovery Cove, and most recently Aquatica. What adds confusion and stirs the pot is that SeaWorld announced plans to develop into Dubai, which would make for an odd time for a company being prepared to be put onto the auction block to be undertaking such a bold development. Having grown up in the SeaWorld parks I can't imagine it without Anheuser-Busch present. I would be more concerned about the state of operations within Animal Training, Animal Care, Education, Zoological, etc. These departments are the core of SeaWorld Adventure Parks when it comes down to it and I personally would hope that whatever company chooses to purchase SeaWorld doesn't shakeup the corporate structure already in place and cause a decline in the company. As far as Disney purchasing SeaWorld, I personally don't see it happening. SeaWorld is a uniquely different product than what Disney offers and would undertake. Disney is best in what it does, but I don't think they have the knowledge and experience to enter the market that SeaWorld is in. I could however see them taking Busch Gardens purely because it's main product is that of attractions and not animals. I quite personally am far from being a fan of the sale to InBev and believe that if InBev does indeed choose to sell off these parks, it would be a huge mistake. Part of the deal to sell should have involved these parks and either an agreement to keep them, or sell them as a whole to a suitable buyer. These parks are also very closely run operations wise with regards to the operations, research, and animal training/care. The animals are also moved around thru the network of the 3 parks to preserve and/or enhance social structures with the animals. SeaWorld also loans animals to other parks for breeding reasons. I could see that network that right now is what makes SeaWorld as successful as it is with its breeding program, potentially fall apart if the parks are sold. Enough of me rambling on though.... On topic, I hope InBev doesn't sell, if they do, I hope the buyer preserves the management structure and keeps all the SeaWorld parks together (SeaWorld, Discovery Cove, and Aquatica). Busch Gardens, Adventure Island, Water Country, etc, could all survive and be successful in a sale, SeaWorld parks IMO would be an uphill struggle I think.

[Mousemates]

Part of the deal to sell should have involved these parks and either an agreement to keep them, or sell them as a whole to a suitable buyer.

Why would this be in the best interests of Inbev?

[Scar]

... and why would Busch care when...

There has been long time rumors that Busch Entertainment was being put up for sale by Anheuser-Busch and it's been talk around the SeaWorld parks for a while.