Disney to Build Ultra-Luxury Homes
Analysts are likely to ask, "why bother?" Disney made $3.3 billion last year on revenue of $36.1 billion. Its revenue strength is media properties like ESPN and the huge theme parks it has in Asia, the U.S. and Europe. It would appear that Disney has decided to take a risk that Florida real estate will recover and that the rich will be drawn, somehow, to the Disney name.
It's definitely a risky venture. For decades, the Disney brand has been tied to middle class tastes, drawing families to its theme parks and movies like Toy Story 3. Plus, real estate development has suffered over the last three years, and the Florida market, hurt by a property balloon and high unemployment in the state, may not come back for years.
Otherwise, it is a great idea.