Subject:
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Re: All four LEGOLAND® parks put on the block
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Newsgroups:
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lugnet.mediawatch
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Date:
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Sat, 23 Oct 2004 04:56:41 GMT
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Viewed:
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2116 times
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In lugnet.general, Abner Finley wrote:
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Toy maker to divest four parks including the one in Carlsbad
Struggling to regain its financial footing, toy maker LEGO® Company said
Thursday that it plans to transfer its LEGOLAND parks, including the one in
Carlsbad, to a separate company as the first step toward a sale.
The announcement came as the legendary Danish company said it has yet to
recover from its financial stumbles in 2003 and has recorded poor sales in
Japan and the United States this year. The privately held, family-owned
company is expected to record a pretax loss of $33.8 million to $67.7 million
for this year.
LEGO said it wants to focus on its primary business of toys and will divest a
number of its assets, including its LEGOLAND parks, which are in four
locations worldwide. The others are in Billund near its corporate
headquarters in Denmark, outside London and in southern Germany.
Executives at LEGOLAND in Carlsbad said the future ownership structure is
undetermined. One possibility is a transfer of ownership to an investment
company owned by the Kristiansen family, descendants of LEGO founder, Ole
Kirk Christiansen. John Jakobsen, president and general manager of LEGOLAND
California, said he was excited about the possibility of an ownership change.
“I have been with the LEGO Company for more than 19 years, and I feel this is
the right move for LEGOLAND California,” he said.
As part of the larger changes at LEGO, Kjeld Kirk Kristiansen, the company’s
chief executive for the past 18 years and the founder’s grandson, resigned
and will be replaced by Joergen Vig Knudstorp, a former senior vice president
of corporate affairs. Knudstorp said the parks now tie up about a third of
the company’s capital and only account for about a seventh of its sales.
Still, Kimberly Clark, a spokeswoman for LEGOLAND California, said the park,
which opened about five years ago, continues to improve its attendance and
its financial performance. Last year, LEGOLAND had 1.3 million visitors, and
Clark said attendance this year is running about 10 percent higher. LEGOLAND
does not reveal its revenue figures, but Clark said it is expecting
double-digit improvement this year. LEGOLAND had 1.45 million visitors in
2000, according to Amusement Business magazine, an industry trade publication
that ranks attendance at North America’s top 50 theme parks.
Dennis Speigel, president of International Theme Park Services, a consulting
firm, said LEGOLAND has a high-quality product but it appeals to a limited
segment of the population: families with small children. “People have always
had a good experience there,” Speigel said. “It is a very narrow demographic.
It does not appeal to teenagers or adults.” Speigel predicted that few U.S.
companies in the theme park business would be interested in the LEGOLAND
properties because many face their own financial struggles.
Six Flags, which owns 31 theme parks, has more than $2 billion in debt, and
its attendance is sagging. Cedar Fair, which owns Worlds of Fun and 12 other
theme parks, is not in expansion mode, Speigel said. Walt Disney is doing
well but probably wouldn’t be interested in LEGOLAND because it is focused on
its own brand.
LEGO biggest problem is that it entered the amusement park business after it
had peaked, he added. “They missed the boom, which was in the ‘80s and ‘90s,”
Speigel said. “But it’s an excellent product.”
-end of report-
www.signonsandiego.com/news/business/20041021-2147-lego-staff.html
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This may not be a bad thing.
Having a separate company gives TLC a chance to be a partner, which could work
out really well.
Tokyo Disneyland and Tokyo DisneySea are not owned by the Walt Disney Company,
but by the Oriental Land Company. Disney sold licensing to OLC (from what I
understand) for a share of the profits. OLC also gets access to the creative
resources of Disney, including Walt Disney Imagineering.
With the deep pockets of OLC, Tokyo DisneySea was built on a budget that would
have been highly improbable from Disney alone, which during the same time built
Disney’s California Adventure. DisneySea has become the crown jewel of the
Disney Parks, while California Adventure has been received with a cool
reception.
I hope that LEGO does find such a partner.
In the odd rumor section, there has been talk for some years that Disney was
interested in adding a Miniland to EPCOT in the World Showcase area...
Joe Meno
.space paparazzi!
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Message is in Reply To:
 | | All four LEGOLAND® parks put on the block
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| Toy maker to divest four parks including the one in Carlsbad Struggling to regain its financial footing, toy maker LEGO® Company said Thursday that it plans to transfer its LEGOLAND parks, including the one in Carlsbad, to a separate company as the (...) (20 years ago, 23-Oct-04, to lugnet.general, FTX) !
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