Mediatech Capital Partners managing partner Porter Bibb and Circle Squared Alternative Investments president Jeff Sica assess Disney’s performance in the market.
Shares in Disney and other theme park operators increased on Thursday after California State Assembly members introduced a bill that could allow larger venues to reopen more quickly than under current state guidelines for coronavirus pandemic.
The project is co-sponsored by Democratic Congresswoman Sharon Quirk-Silva and Republican Congresswoman Suzette Martinez-Valladares. If approved, the bill would allow large theme parks with a capacity of 15,000 or more visitors to reopen when their home counties enter the “orange” or moderate level, as defined by California guidelines on COVID-19 case totals.
Under current state guidelines, smaller theme parks are allowed to reopen when their home counties enter the orange layer, while larger parks have to wait until their locations go “yellow”, or minimal tear.
“By opening our theme parks, we will have a ripple effect on our local economy and, in turn, create more jobs,” said Martinez-Valladares in a statement obtained by the Orange County Register. “It is time to offer clear guidelines that will balance public health and the need to get people back to work safely, and this project is the first step.”
California’s theme parks have been closed for months as state officials have instituted strict guidelines to deal with the increasing number of cases.
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Disney representatives did not immediately return a request for comment on the project.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| DIS | WALT DISNEY COMPANY | 180.23 | +3.80 | + 2.15% |
| SIX | SIX FLAGS ENTERTAINMENT | 39.35 | +2.19 | + 5.89% |
| CMCSA | COMCAST CORP. | 51.45 | +0.98 | + 1.94% |
| SEAS | SEAWORLD ENTERTAINMENT INC | 34.60 | +3.18 | + 10.12% |
Disney shares were up more than 2% in Thursday’s trading on the news. Shares in other theme park operators, including Six Flags, SeaWorld and Comcast, also increased.
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In November, Disney revealed that it would lay off 32,000 employees in the first half of fiscal 2021, including 28,000 workers in its park division. Executives have criticized California Governor Gavin Newsom and other officials for their implementation of restrictions that have kept the parks closed.