Published May 20, 2023, 11:20 a.m. by Monica Louis
In a move that is sure to please Florida Governor Ron desantis, disney has announced that it is scrapping plans to build a new office complex in the state.
The decision comes as the company faces a legal battle with the state over a proposed tax incentive package.
disney had planned to build a new, $500 million office complex in Orlando, which would have created 2,000 jobs.
However, the state legislature failed to pass a bill that would have given the company $270 million in tax breaks.
disney then decided to withdraw its plans for the new office complex.
In a statement, disney said that it "remains committed to creating high-quality jobs in Central Florida" but that it "cannot continue to move forward with these plans in the current environment."
The company also said that it would "reorganize" its streaming library, which includes the popular disney+ service, in order to "better meet the needs of our direct-to-consumer business."
This move is likely in response to the recent launch of disney's rival streaming service, HBO Max.
disney+ is currently the only streaming service that offers all of disney's content, including movies, TV shows, and theme park rides.
However, with the launch of HBO Max, disney no longer has that monopoly.
HBO Max offers a similar selection of content, but at a lower price point.
disney+ costs $6.99 per month, while HBO Max is $14.99.
disney's decision to reorganize its streaming library may be in an effort to make disney+ more attractive to potential subscribers.
The company has already announced that it will be adding more than 50 new movies and TV shows to the service in the coming months.
In addition, disney is also planning to launch a new Star Wars series on disney+, which is sure to be a hit with fans of the franchise.
With all of these changes, it is clear that disney is feeling the pressure from HBO Max.
Only time will tell if these changes are enough to make disney+ the top streaming service in the world.
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let's turn to another corporate story
you're watching Disney scrapping plans
to build its nearly one billion dollar
office complex in Florida it announced
the news of its canceled plans on
Thursday citing quote new leadership and
changing business conditions wonder that
would that mean this comes as the
company is also opening few openly
feuding with the state's Governor Ron
DeSantis joining us now is Allie Canal
to discuss this more so this is really
kind of heating up right I sort of like
it sort of felt it had gotten quiet but
this this is not going away it's not
going away now Disney didn't
specifically say that Governor DeSantis
was the reason for these plans but you
can surmise that the ongoing feud had
something to do with it in an internal
memo obtained by Yahoo finance Josh
tomorrow who chairs the parks experience
and product division told employees that
the company would be stopping the
construction of this employee campus in
the Lake Nona region of Florida now
along with that construction stoppage
that that also means plans to relocate 2
000 california-based Disney employees
are no longer now it's a shame because a
lot of those employees did end up
leaving the company because they didn't
want to relocate now these plans are are
just going all over the place the
relocation plans they were first
announced in July 2021 under the
leadership of then CEO Bob chapek the
campus was supposed to open between 2022
2023 That Was Then delayed to 2026 and
now we got the news that it's just not
happening now the office of the governor
did eventually respond to me for comment
on this they they said that Disney
announced the possibility of a Lake Nona
campus nearly two years ago nothing ever
came of the project and the state was
unsure whether it would come to fruition
given the company's Financial Straits
failing market cap and declining stock
price it is unsurprising that they would
restructure their business operations
and cancel unsuccessful Ventures so
finding words there from the office of
the governor as they are in the midst a
feuding complaints and lawsuits and the
the drama continues yeah absolutely so
for investors trying to make sense of
multiple headlines that surround Disney
on a daily basis there's this there's
also the ESPN announcement too what is
the way to look at how Disney is kind of
moving these parts around whether it be
and where the employees are going to be
at or where certain assets that they've
already said are going to be kind of
their own Standalone internal entity are
now looking at being offered to the
public as well well I think from an
investor perspective these fights with
the governor that's not really moving
the stock too much we took a look at the
stock yesterday it was relatively flat
now today it's down on the day down
about two percent right now and you know
we've heard from analyst McGuire out
with a new note this morning downgrading
Disney shares from outperform to neutral
seeing those near-term uncertainties as
a risk for Disney's future now that
includes those linear networks to tear
creating you know you mentioned ESPN
there was a Wall Street Journal report
that there are talks about moving ESPN
fully over the top that's something
we've heard from Bob Iger we don't know
what the timeline could be on that but
that's another uh question mark for
investors so I think it's more of these
fundamental issues of the company if we
were to see this fight with the governor
materially impact the parks business or
Walt Disney World specifically in their
earnings I think that's something that
could move the stock but in terms of
this fight in particular that's one
element here that I think shareholders
are shrugging off at least for now
that's not to say down the line it
couldn't be you know more impactful to
Disney's bottom line yeah I'm just
saying now actually Macquarie has
downgraded the stock this morning so
maybe that is also helping push things
down that has to do with all of these
uncertainties that are ongoing it
doesn't seem to have to do with what's
going on in Florida right to your point
um but even still
um you know some other stuff there's
there's plenty forth to get for it to
contend with I guess is what I'm saying
even if you exempt all of the Florida
stuff here exactly and Disney look
they're in the midst of restructuring
their business they're in the midst of
trying to Pare down on their content as
well they're going to take a Content
impairment charge of 1.5 to 1.8 billion
as they look to scrap certain series and
specials from both Disney plus and Hulu
that's something they announced on their
latest earnings call and again this is
something that we're seeing across the
board as a lot of these media Giants are
really trying to Grapple with
profitability and be number one in the
streaming Wars while also making money
so it's that push and pull how do we
create value for both our shareholders
as well as our customers let's be real
can we talk about the real reason that
Disney is struggling right now it's
because the investors are thinking about
the fact that the Sixers are no longer
in the playoffs right now that's going
to impact the NBA viewership clearly
advertising dollars that's the real
reason minus two at least minus two I
know that was the last two viewers
dagger that was a dagger and like Josh
Schaefer our business supporter he's a
Celtics fan so she's got to go home I
know so I think there's a lot of
internal uh competition within Yahoo you
know as well as Disney you keep bringing
this up man I heard you well I think you
want the sympathy of the people I think
that's right we got the Eagles here's
the thing we're gonna have Kenny Smith
on later on today of course NBA former
NBA player and now analyst for NBA on
TNT I'm going to ask him why the Sixers
lost because I want some huge getting
MVP what's your sympathy you want some
answers accountability yeah okay I want
answers okay this is a serious stuff we
got to talk about you know okay well you
uh uh just heard you guys can talk about
that I'm going to tell people what what
we're going to talk about on air now
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