What would happen if Disney were bought/sold??

[Tony P. IL.]

What would happen to our interest/contract if Disney were sold,bought or taken over?

 

[Disnydad]

I think we would be all set with DVC. It is a contract. Back in the early/mid 80's though there was a scare. Some folks tried to buy Disney. The plan, I read, was to split the company up, and sell off the movie rights, film production and parks into separate companies. If it was just Disney stock down, I'd be worried. But, all stocks are down so Disney is not so tempting a target. Just my 2 cents.

 

[dianeschlicht]

I have to agree with Disnydad. Our contract is a legal real estate contract. That fact can not change.

 

[POOH&PIGLET]

Anyone buys or takes over Disney also takes over all of their contracts. The have a contractual obligation to each DVC Member. They would also have the rights to do anything that Disney could do under our contracts.

 

[MikeScott8]

They would also have the rights to do anything that Disney could do under our contracts.

what types of things? I am guessing the points per year per resort being fixed is in the contract? Also I assume the 2041(?) date is in the contract, but is there an out clause in the contract?

Is there a limit, in the contract, to how much maint fees can go up in a year?

Some questions I am sure would be answered if I were to read the contract, but as I am far from buying right now (Jan - Feb earlyist) I won't see one to read until then.

Thanks,

Mike

 

[PamOKW]

Is there a limit, in the contract, to how much maint fees can go up in a year?

FL Law prevents them from going up more than 15% in a year. Historically, there has never been an increase greater than 5% and for the last 4 years they have stayed just about stable going up and down only slightly year to year.

 

[drusba]

If Disney were sold, DVC would basically remain unchanged. They cannot raise total points applicable to reserving a unit for the year. They cannot change the concept that dues are based on actual costs of running and repairing the resorts (and not costs plus profit for Disney or any new owner). They cannot change the ending date 2042. In other words, DVC would remain basically unchanged although they could scrap plans for any new DVC resorts (like BCV or Eagle Pines).

The major changes to be concerned about are not those in the particular program. For example, a new owner of Disney could decide to do a lot of things to WDW in general (like lay-off huge numbers of people and run a bare bones operation at the parks or sell some resorts (non-DVC) to other companies--just image GF run by Holiday Inn). Major changes like that would be idiotic but one should never assume that those who manage from ivory towers are always rational people.

 

[TnRobin]

Remember, our contract is not with "Disney" but with DVD. They are separate corporations. DVD has a contract with Disney for the lease on the DVC properties until 2043.

Also remember, when a corporation is bought, it is mearly the owners that change, the corporation continues until dissolved. Even thought the owners change, the corporation is still bound by all its contracts. I very seriously doubt that anyone who would buy Disney would want to dissolve the corporation. The corporate name is probably the biggest asset they have.