Trumps economic saber rattling with China has it’s government up in arms. Talks about tariffs and the release of China’s fixed currency have had ripple effects throughout the global markets. If Trump follows through with his threats, it will affect U.S. firms doing business in China, and Disney potentially has the most to lose.
Disney’s capital investments, along with government partners, are in the tens of billions. If motivated, the Chinese government could easily turn the screws on the profits generated by Shanghai Disneyland, Hong Kong Disneyland, the Disney store, films and merchandise. This would not only have an adverse effect on overall profits and stock price, but will damage Disney’s brand image.
Although no-one in the corporate mouse house has said anything publicly (yet), be assured a strategy to deal with this is already in the making. Iger is no dummy!
Note: our chinese to english transcription software inserted “eisner” over ‘iger” in error. Please accept our apologies as it passed through our manual review process!