Disney to Build $3.59 Billion Theme Park in Shanghai
Plans for Walt Disney Co. to build a $3.59 billion theme park in Shanghai are progressing. The Wall Street Journalsays that while Disney now has an agreement in place with Shanghai they still have to get approval from China's central government, which could take as long as a year.
Disney has long sought a mainland park for the access to the vast Chinese market that it would offer. The $37.8 billion media giant will be able to pitch the park as creating 50,000 new jobs amid a cooling Chinese economy. The downturn has given the park new urgency, according to a person familiar with the situation. "I think it will really fly now given the current economic climate," that person said.
Still, Leslie Goodman, an executive vice president at Disney's Parks and Resorts unit, stressed the proposal is preliminary and faces a long road ahead of it.
"As part of this lengthy process, we worked on a joint application report with the Shanghai government which will be submitted to the central government for review. She cautioned: "No deal has been signed, no project has been approved."
A Shanghai government spokesman declined to comment. Approvals by China's central government could take up to a year.
If Shanghai and Disney get final approval the park could be ready by 2014. Shanghai has a population of over 20 million so it's a very big market for Disney. L.A. Times, Disney Blog and Reuters have more on Disney's plans for a Shanghai theme park.
