Disney (ticker: DIS) has announced plans to significantly increase its investment in its parks, experiences, and products segment over the next ten years. In a recent filing with the Securities and Exchange Commission, the company revealed its intention to allocate approximately $60 billion towards accelerating and expanding its Disney Parks Experiences and Products (DPEP) segment. These investments will primarily focus on enhancing their theme parks and cruise lines.
Despite this exciting news, shares of Disney experienced a 2.7% drop early Tuesday, currently valued at $82.73. So far in 2023, the stock has seen a decline of over 4.5%.
Assured of its financial stability, Disney confidently stated that it possesses more than enough resources to cover all ongoing operational requirements, contractual obligations, upcoming debt maturities, and capital expenditures necessary for expanding existing businesses and developing new projects.
In 2022, Disney's DPEP segment generated an impressive $28.7 billion in revenue, surpassing the pre-pandemic figure of $26.8 billion in 2019. As of Tuesday, the segment's revenue for the past 12 months stands at $32.3 billion.
This decision comes at a crucial time for Disney, with investors closely monitoring its media segment following a dispute with cable company Charter Communications (CHTR) regarding pricing. Additionally, Disney is grappling with potential sales of certain networks. In response, the entertainment giant has recently expressed openness to exploring various strategic options for its linear television business.