For almost a century, The Walt Disney Company was based primarily in California. But according to a new report from Orlando Business Journal, things may be changing soon, as the company is considering moving several of its divisions to Florida.
Jack Witthaus and Richard Bilbao write that Disney may be transferring part of its company to Lake Nona, a planned community in southeastern Orlando. The move comes as several companies, including Hewlett Packard Enterprise, have announced moves to southeastern states, which tend to be more tax-friendly and support companies. Disney reportedly has not signed any agreements with the community and is not sure which divisions or how people would make the change.
Recently, Disney has had open fights with California, particularly with regard to the state’s COVID-19 restrictions, which have kept Disneyland Resort parks closed since March. Meanwhile, Florida guidelines have allowed Walt Disney World parks to be open since July.
A Disney spokesman told Witthaus and Bilbao, “As the largest employer in Central Florida, we are always exploring opportunities for additional locations in the vicinity of our theme park, but there is nothing concrete.” Lake Nona developer Tavistock Development Co. declined to comment.
Jeff Sweeney, managing director of Cushman & Wakefield, who is not involved in the possible move, said Disney has “compelling reasons” to transfer more of its divisions to Orlando, saying, “We have seen it over and over in the past 12 months. , corporations leaving California for other business-friendly markets. You look at what happened to [theme] parks in California versus Florida. This is a major financial impact on the organization, along with the cost of operations and personal income tax for employees, in addition to other California regulations. “
Tuna Amobi, director and industry analyst at CFRA Research, added that it is unlikely to be a complete relocation, especially with his film and television production already rooted in Los Angeles and New York. More likely, it would be the theme park divisions to change, probably additional support and operations departments, with most of them already in Central Florida. Amobi was also not surprised by the rumor, saying: “Covid’s situation is not under control, despite the progress of the vaccine, [but] gave investors some hope ”.
Keep reading WDWNT as we learn more about this ongoing story.