Business
Why Disney is doubling down on theme parks with a $60-billion plan
Over the decades since Walt Disney opened his first theme park in 1955, the company’s tourism business has ballooned to an enterprise worth tens of billions in yearly sales, with sprawling locations in Anaheim, Orlando, Paris, Shanghai, Hong Kong and Tokyo.
Today, the Burbank entertainment giant is doubling down once again. Disney plans to invest $60 billion over 10 years into its so-called experiences division, which includes the theme parks, resorts and cruise line, as well as merchandise.
In Anaheim, the city council recently approved an expansion plan at Disneyland Resort, which could lead to at least $1.9 billion of development and involve new attractions alongside hotel, retail and restaurant space.
Why the massive investment? At a time when Disney faces revenue challenges due to cord cutting, streaming wars and a slower film box office, its theme parks are a bright — and reliable — spot for its business. Moreover, they play a major part in the company’s strategy — using well-loved movies to inspire rides and vice versa (think “Pirates of the Caribbean”), feeding an ongoing virtuous cycle.
“When you consider other elements of Disney’s business, those theme parks, they’ve shown themselves to be proven winners,” said Carissa Baker, assistant professor of theme park and attraction management at the University of Central Florida’s Rosen College of Hospitality Management. “There’s no doubt that they have stayed very competitive in the film space and the TV space, but they’ve always led the theme park sector.”
During the most recent fiscal year, the company’s experiences division — which is heavily anchored by the parks — brought in about 70% of Disney’s operating income, according to a filing with the U.S. Securities and Exchange Commission. By contrast, Disney’s sports sector, including ESPN, contributed 19% of operating income. The entertainment division, consisting of the company’s TV channels, streaming services and movie studios, brought up the rear at 11%.
Those numbers represent a stark contrast from even 10 years ago, when the company was heavily reliant on its TV networks, which brought in 56% of Disney’s operating income (that segment included ESPN at the time). The parks and resorts division drew just 20%.
The tide began to turn in 2019, as the global theme park industry saw record-breaking attendance, just in time for the pandemic to hit the next year.
With the parks closed, Disney reported an operating loss of $81 million in 2020. Disneyland and Disney’s California Adventure, in particular, were shut for 15 months, due to tight restrictions in the Golden State. Since then, pent-up demand from visitors has propelled theme park revenue in a way that hasn’t been replicated in movie theaters.
“The industry was really growing quickly before COVID-19, and that obviously put a crimp on everything,” said Martin Lewison, associate professor of business management at Farmingdale State College in New York. “But it appears as long as the economy remains healthy, the industry is back on track for that growth.”
Theme parks are typically one of the fastest parts of the travel and hospitality industry to recover after economic downturns, said Dennis Speigel, founder and chief executive of consulting firm International Theme Park Services. Part of that is because it’s hard to duplicate the theme park experience at home.
“Disney sets the bar for our entire global theme park industry,” Speigel said. “The guests, the visitors, they love the way Disney immerses you in their storytelling.”
The Disneyland Resort expansion plan, known as DisneylandForward, will help the 490-acre park stay fresh for visitors. The plan calls for changes to the park’s zoning, allowing the company more freedom to mix attractions, theme parks, shopping, dining and parking. While the plan doesn’t specify exactly which attractions will be added to the resort, company officials have floated ideas including immersive Frozen, Tron and Avatar experiences.
Over the years, Disneyland has cycled out many rides and exhibits to make way for new ones — for example, of the original 33 attractions that debuted with the park, only about a dozen still exist (One that didn’t make it? The Monsanto Hall of Chemistry).
Though Disneyland and Disney’s California Adventure have recently seen additions such as Star Wars: Galaxy’s Edge, Avengers Campus and the renovated Pixar Place Hotel, giving guests new reasons to come back again and again are the key to increased growth. This summer, the Magic Kingdom will open Tiana’s Bayou Adventure, replacing the controversial “Song of the South”-inspired Splash Mountain attraction.
“In the theme parks business, you tend to make more money the more you invest,” said Lewison of Farmingdale State College. “People love riding Haunted Mansion 50 times, but the truth is that even that gets old. So new rides, new lands, new parks — these things draw in attendance, they create pricing power and they add capacity.”
And Disney’s rivals in the theme parks business show no signs of slowing down, meaning Disney can’t just rely on its existing hits. Universal Studios Hollywood recently added Super Nintendo World to its park, SeaWorld is touting new attractions and shows for its 60th anniversary this year, and even immersive art installation company Meow Wolf is expanding throughout the U.S.
The competition is becoming so fierce that Disney Chief Executive Bob Iger faced a pointed question during last month’s shareholder meeting about Walt Disney World’s readiness to vie with a new Universal park set to open in Orlando in 2025. He pushed back on the query, saying the idea that Disney World didn’t prepare enough attractions to compete for guests that year “just couldn’t be further from the truth.”
“We’ve been aware of Universal’s plans for a new park for more than a decade,” he said. “We have a sophisticated approach to analyzing the needs of all of our businesses and strategically deploying capital.”
The importance of the parks to Disney’s bottom line is also showing up in the entertainment giant’s search for Iger’s successor. (Iger is expected to retire in 2026.) Josh D’Amaro, the chair of Disney Experiences, which includes the parks, is considered one of four front-runners for the job. Notably, it was Bob Chapek, formerly of the parks division, who initially succeeded Iger, though he was later ousted from the role.
Business
Not ‘Just Ken’: Mattel shares Barbie’s longtime boyfriend’s full name
At the 2024 Oscars, Ryan Gosling, reprising his role as Ken in Greta Gerwig’s 2023 movie “Barbie,” donned a bedazzled pink suit and belted the ballad “I’m Just Ken.”
“I’m just Ken, anywhere else I’d be a 10,” the actor sang. “Is it my destiny to live and die a life of blond fragility?”
Barbie’s needy male counterpart, it turns out, is not “just Ken.” His full name is Kenneth Sean Carson, according to Mattel, which says the doll saw a uptick in popularity in the years following the hit movie’s release.
Ahead of Ken’s 65th birthday, the El Segundo-based toy giant shared a laundry list of niche biographical details about the doll, including his official “birthday” — March 11, 1961, making him a Pisces — as well as his relationship history with Barbie.
The company said in a statement Monday that Ken has “experienced a resurgence in recent years.”
A Mattel spokesperson cited the “Barbie” movie as a driving factor, as it showed a “different side” of Ken. In a meta move, the company later in 2023 released Ken dolls modeled after Ryan Gosling’s portrayal of Ken.
The “Kenbassador” line launched last year was a “great success,” the spokesperson said. The first product in that toy series was a $75 doll modeled after basketball player LeBron James released in April.
Mattel says it does not break out sales of Ken dolls, but in 2017, when Mattel unveiled Ken dolls with different body types, including one that invited “dad-bod” comparisons, the company told the Wall Street Journal that, on average, girls have one Ken doll for every seven Barbies they own.
Ruth Handler, the creator of Barbie, named the original doll after her daughter, Barbara. The glamorous doll, unique in that it depicted a grown woman rather than a baby, was an instant hit when it debuted at the New York Toy Fair in 1959. Barbie has significantly evolved in the decades since. Recent additions include Barbies with Type 1 diabetes and another with autism.
The Ken doll, created in 1961, was named after Handler’s son, Kenneth. He featured molded hair, wore red swim trunks and carried a yellow towel.
Kenneth Handler told The Times in a 1989 story that there were few similarities between him and the doll named after him. He died in 1994.
“Ken doll is Malibu,” he said. “He goes to the beach and surfs. He is all these perfect American things.”
But when Kenneth Handler was at Hamilton High School in Beverlywood, he “played the piano and went to movies with subtitles.” He continued, “I was a nerd — a real nerd. All the girls thought I was a jerk.”
Like Barbie, Ken dabbled in many different careers over the decades. There have been doctor, pilot, tennis player, firefighter, lifeguard, barista and even Olympic skier Kens, among many others. In 2006, he received a “mid-life makeover” from celebrity stylist Phillip Bloch.
According to the company, Ken and Barbie “met” on the set of their first television commercial in 1961 and soon began dating. After more than four decades, the doll couple broke up in 2004, but reunited in 2011.
Mattel was founded by Ruth Handler; her husband, Elliot Handler; and Harold “Matt” Matson in 1945 in a Los Angeles garage. The toy maker became a publicly traded company in 1960.
Mattel, which also owns Fisher-Price and Hot Wheels, wrote in its October Securities and Exchange Commission filing that “industry-wide shifts in retailer ordering patterns” pushed its third quarter net sales down 6%.
In 2024, Barbie gross billings — which measure the total value of products Mattel ships to retailers before sales adjustments — were down 12% from 2023, which had seen a boost from the movie, according to the company’s annual SEC filing.
Business
Paramount outlines plans for Warner Bros. cuts
Many in Hollywood fear Warner Bros. Discovery’s sale will trigger steep job losses — at a time when the industry already has been ravaged by dramatic downsizing and the flight of productions from Los Angeles.
David Ellison‘s Paramount Skydance is seeking to allay some of those concerns by detailing its plans to save $6 billion, including job cuts, should Paramount succeed in its bid to buy the larger Warner Bros. Discovery.
Leaders of the combined company would search for savings by focusing on “duplicative operations across all aspects of the business — specifically back office, finance, corporate, legal, technology, infrastructure and real estate,” Paramount said in documents filed with the Securities & Exchange Commission.
Paramount is locked in an uphill battle to buy the storied studio behind Batman, Harry Potter, Scooby-Doo and “The Big Bang Theory.” The firm’s proposed $108.4-billion deal would include swallowing HBO, HBO Max, CNN, TBS, Food Network and other Warner cable channels.
Warner’s board prefers Netflix’s proposed $82.7-billion deal, and has repeatedly rebuffed the Ellison family’s proposals. That prompted Paramount to turn hostile last month and make its case directly to Warner investors on its website and in regulatory filings.
Shareholders may ultimately decide the winner.
Paramount previously disclosed that it would target $6 billion in synergies. And it has stressed the proposed merger would make Hollywood stronger — not weaker. The firm, however, recently acknowledged that it would shave about 10% from program spending should it succeed in combining Paramount and Warner Bros.
Paramount said the cuts would come from areas other than film and television studio operations.
A film enthusiast and longtime producer, David Ellison has long expressed a desire to grow the combined Paramount Pictures and Warner Bros. slate to more than 30 movies a year. His goal is to keep Paramount Pictures and Warner Bros. stand-alone studios.
This year, Warner Bros. plans to release 17 films. Paramount has said it wants to nearly double its output to 15 movies, which would bring the two-studio total to 32.
“We are very focused on maintaining the creative engines of the combined company,” Paramount said in its marketing materials for investors, which were submitted to the SEC on Monday.
“Our priority is to build a vibrant, healthy business and industry — one that supports Hollywood and creative, benefits consumers, encourages competition, and strengthens the overall job market,” Paramount said.
If the deal goes through, Paramount said that it would become Hollywood’s biggest spender — shelling out about $30 billion a year on programming.
In comparison, Walt Disney Co. has said it plans to spend $24 billion in the current fiscal year.
Paramount also added a dig at Warner management, saying: “We expect to make smarter decisions about licensing across linear networks and streaming.”
Some analysts have wondered whether Paramount would sell one of its most valuable assets — the historic Melrose Avenue movie lot — to raise money to pay down debt that a Warner acquisition would bring.
Paramount is the only major studio to be physically located in Hollywood and its studio lot is one of the company’s crown jewels. That’s where “Sunset Boulevard,” several “Star Trek” movies and parts of “Chinatown” were filmed.
A Paramount spokesperson declined to comment.
Sources close to the company said Paramount would scrutinize the numerous real estate leases in an effort to bring together far-flung teams into a more centralized space.
For example, CBS has much of its administrative offices on Gower in Hollywood, blocks away from the Paramount lot. And HBO maintains its operations in Culver City — miles from Warner’s Burbank lot.
Paramount pushed its deadline to Feb. 20 for Warner investors to tender their shares at $30 a piece.
The tender offer was set to expire last week, but Paramount extended the window after failing to solicit sufficient interest among Warner shareholders.
Some analysts believe Paramount may have to raise its bid to closer to $34 a share to turn heads. Paramount last raised its bid Dec. 4 — hours before the auction closed and Netflix was declared the winner.
Paramount also has filed proxy materials to ask Warner shareholders to reject the Netflix deal at an upcoming stockholder meeting.
Earlier this month, Netflix amended its bid, converting its $27.75-a-share offer to all-cash to defuse some of Paramount’s arguments that it had a stronger bid.
Should Paramount win Warner Bros., it would need to line up $94.65 billion in debt and equity.
Billionaire Larry Ellison has pledged to backstop $40.4 billion for the equity required. Paramount’s proposed financing relies on $24 billion from royal families in Saudi Arabia, Qatar and Abu Dhabi.
The deal would saddle Paramount with more than $60 billion of debt — which Warner board members have argued may be untenable.
“The extraordinary amount of debt financing as well as other terms of the PSKY offer heighten the risk of failure to close,” Warner board members said in a filing earlier this month.
Paramount would also have to absorb Warner’s debt load, which currently tops $30 billion.
Netflix is seeking to buy the Warner Bros. television and movie studios, HBO and HBO Max. It is not interested in Warner’s cable channels, including CNN. Warner wants to spin off its basic cable channels to facilitate the Netflix deal.
Analysts say both deals could face regulatory hurdles.
Business
Southwest’s open seating ends with final flight
After nearly 60 years of its unique and popular open-seating policy, Southwest Airlines flew its last flight with unassigned seats Monday night.
Customers on flights going forward will choose where they sit and whether they want to pay more for a preferred location or extra leg room. The change represents a significant shift for Southwest’s brand, which has been known as a no-frills, easygoing option compared to competing airlines.
While many loyal customers lament the loss of open seating, Southwest has been under pressure from investors to boost profitability. Last year, the airline also stopped offering free checked bags and began charging $35 for one bag and $80 for two.
Under the defunct open-seating policy, customers could choose their seats on a first-come, first-served basis. On social media, customers said the policy made boarding faster and fairer. The airline is now offering four new fare bundles that include tiered perks such as priority boarding, preferred seats, and premium drinks.
“We continue to make substantial progress as we execute the most significant transformation in Southwest Airlines’ history,” said chief executive Bob Jordan in a statement with the company’s third-quarter revenue report. “We quickly implemented many new product attributes and enhancements [and] we remain committed to meeting the evolving needs of our current and future customers.”
Eighty percent of Southwest customers and 86% of potential customers prefer an assigned seat, the airline said in 2024.
Experts said the change is a smart move as the airline tries to stabilize its finances.
In the third quarter of 2025, the company reported passenger revenues of $6.3 billion, a 1% increase from the year prior. Southwest’s shares have remained mostly stable this year and were trading at around $41.50 on Tuesday.
“You’re going to hear nostalgia about this, but I think it’s very logical and probably something the company should have done years ago,” said Duane Pfennigwerth, a global airlines analyst at Evercore, when the company announced the seating change in 2024.
Budget airlines are offering more premium options in an attempt to increase revenue, including Spirit, which introduced new fare bundles in 2024 with priority check-in and their take on a first-class experience.
With the end of open seating and its “bags fly free” policy, customers said Southwest has lost much of its appeal and flexibility. The airline used to stand out in an industry often associated with rigidity and high prices, customers said.
“Open seating and the easier boarding process is why I fly Southwest,” wrote one Reddit user. “I may start flying another airline in protest. After all, there will be nothing differentiating Southwest anymore.”
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