Disney is not doing well. Actually, that might be the understatement of the decade, as young as it is. For the company is bleeding money at the same rate demons are being dismembered in Doom Eternal. With their parks closed, each day sees the company lose 30 million dollars, according to Mediate. Even when the parks reopen they will have to be completely reinspected and pass certification which will mean additional millions in revenue just to bring them back online. A process that could take months.
If that wasn’t bad enough for each voyage of Disney’s four cruise ships that they have to cancel will cost the company an additional 3-4 million dollars in revenue, as reported by Yahoo News. Owe and Disney Plus won’t be profitable until 2024, according to the Motley Fool, if it is ever profitable given the upcoming crash of the streaming market that has kept itself afloat with infusions of debt offerings the likes of Netflix soon won’t be able to repay.
On top of all that the movie chains upon which Hollywood relied so heavily on for revenue are projecting massive closures as a result of the pandemic’s lockdowns. AMC Theaters, the nation’s largest chain with 8,218 theaters is projected to go bankrupt, according to a report from The Wrap. As is the second largest chain Regal Entertainment Group, according to the New York Post. Those hoping Cinemark will be able to withstand the crisis think again. They are seeing their credit slashed and are in a similarly poor financial state as detailed by the Hollywood Reporter.
Clownfish TV also did a recap of how damaging the pandemic will be for the theater business at large.
How did this happen? Well, while the industry and “journalists” were keen to portray the image of a healthy vibrant economy. The truth of the matter was the economy has been unhealthy for years with companies barely scraping by. Owing partly to over-taxation draining what revenue does come in and a decrease in revenue coming in as a result of globalization causing all-time lows in the labor participation rate (AKA the real unemployment figure).
When outlets were even willing to admit there was a problem they always attempted to paint the picture of changing trends. In reality, American’s were making less money from fewer jobs, as the wealthiest who exported the jobs to China or imported visa workers got wealthier.
Except for independent journalists and Tucker Carlson, you were told everything was fine, dandy, and even peachy or you were with the other side. You couldn’t question the growing corporate oligarchy on the right, and if you dared suggest Marxist economics would only benefit the same corporations, you were expelled from the left. All the while people ignored the same well-connected group of wealthy individuals and businesses were funding both sides of the debate. Which flavor oligarch do you like? Koch, Rockefeller, or Soros? Warning: Rothy may be frothy.
Ironically it is their very spoiled nature that brought them to this point. Other major industries are enjoying the bailout money, but Hollywood will not receive a dime of it, according to Variety. Apparently antagonizing the President and his administration for years was not the best of ideas when you are a nonessential industry that both the right and left view with increasing contempt. Who would have guessed a bloated bureaucracy would prove the sentiment “When you strike at a king, you must kill him,” to be correct?
As a result, Disney has needed to take on mountains of debt to survive. In March they offered $6 billion worth of notes that will march at a rate of 3.35% to 4.7% between 2025 and 2050, according to The Wrap. Citing the proceeds will not be used to produce new movies, but to just keep the company afloat. In short, it’s being used to pay old debt balances and the administration.
“We intend to use the net proceeds from the sale of the notes for general corporate purposes, including the repayment of indebtedness.”
Having garnered as much money as they could from the American debt market. they turned to Canada later in March to raise an additional 1.3 billion dollars, as noted by THR. Said notes are set to mature at 3.057% by 2027. The intended purpose of the notes is the same as their American equivalents.
That still not being enough Disney entered into a credit agreement with CitiBank for 5 billion dollars of unsecured debt. Effectively Disney now has a $5 billion credit card they can use to get projects off the ground or parks back operational for a year.
Disney is in a sorry state and analysts are predicting it will soon begin selling off divisions to state afloat. Yet the company continues to push the same woke agendas with various properties that they just saw kill the Star Wars brand. At this point, only two paths are available for Disney: A righting of the coarse and abandoning anti-white, anti-male agendas in favor of solid entertainment, or bankruptcy after years of flops, failures, and credit rating downgrades.
Right now they have Iger stepping back in to maintain appearances, but Iger is the same person who ran the company into the ground and focused more on his legacy during the last year than he did running the company effectively.
Keep in mind Disney is not the only company currently hurting. Nearly all of Hollywood is feeling the pinch from the lockdowns and will feel the brunt of the death of a large chunk of the entertainment sector. Leftism is not a ground-up movement, never has been. It is paid for by other people’s money until that money dries up and they move on like locusts. Hollywood has reached the end of other people’s money. Going forward investors who finance movies are not going to be keen on projects they know aren’t going to generate merchandise revenue, show well, or perform well digitally.
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