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Blackstone to Sell Their Universal Orlando Share

marc

CF Legend
This was sort of expect due to Merlin expanding into the USA.

Blackstone are looking to sell their 50% in Univsrsal Studios Orlando.

Blackstone, which bought into the theme park in 2000, has set in motion a right of first refusal clause that gives NBC Universal until June 12 to make a decision. NBC Universal owns the remaining 50 percent of the park.

Should NBC Universal turn down the deal, Blackstone can then approach third parties and attempt to sell all of Universal Orlando, according to terms of the contract.

Blackstone's interest in selling Universal Orlando was disclosed in a regulatory filing earlier this week by Universal City Development Partners Ltd, a holding company formed to oversee the park.

The filing said private equity firm Blackstone informed Universal City Development Partners on March 9 of its intentions. The asking price was not disclosed.

Blackstone's purchased its stake from the Rank Group for $275 million in cash, plus other potential payments based on certain performance criteria.

A spokeswoman for NBC Universal, which is controlled by Comcast Corp, said, "We are studying the proposal and considering our options."

Last year, Universal Orlando opened the Wizarding World of Harry Potter, based on the blockbuster movie and book series. The 20-acre Harry Potter park reportedly cost $250 million to build and recreates the Hogwarts School of Witchcraft and Wizardry and other places dreamed up by author J.K. Rowling in her fantasy novels about the boy wizard and his friends.

Helped by the attraction, Universal Orlando's park attendance rose by about 20 percent in 2009, when the travel industry was reeling from recession. Revenue last year rose 40 percent to $1.13 billion.

http://www.reuters.com/article/2011/03/ ... I320110316
 

Lofty

CF Legend
Wow. I kind of didn't expect that to be totally honest with you. I may sound really stupid in asking this but, if/when they do go, what exactly will change with the resort if it get's to a point in which a new shareholder buys into it (whether that be Merlin or not)? I basically just mean, what input do Blackstone have on what goes in/out of the parks?
 

marc

CF Legend
Merlin is part of Blackstone so when Merlin bought Sea World etc I thought this could happen. They are pushing for more attractions in Orlando so this is the right way to go. Sell their shares free up cash and invest on new attractions in the area under the Merlin name.

For the resort I dont think it will make much difference but for us it could. Merlin will probably have their own ticket system that only includes their parks so Universal will have to come up with their own.

Lofty here is some information for you.

http://www.merlinentertainments.biz/en/ ... e0106.aspx

http://www.blackstone.com/cps/rde/xchg/ ... s/Home.htm
 

marc

CF Legend
Blackstone have now put their 50% up for sale and NBC have until June to buy the remaining 50% or it can be anyone.

If Marvel and Warner Bros are not happy with the people that buy the shares they can pull out of the parks.

Personally I think Harry Potter will stay but could be a god excuse for Marvel/Disney to get out the deal.

http://articles.orlandosentinel.com/201 ... ng-world/3
 

Lofty

CF Legend
marc said:
Blackstone have now put their 50% up for sale and NBC have until June to buy the remaining 50% or it can be anyone.

If Marvel and Warner Bros are not happy with the people that buy the shares they can pull out of the parks.

Personally I think Harry Potter will stay but could be a god excuse for Marvel/Disney to get out the deal.

http://articles.orlandosentinel.com/201 ... ng-world/3

I sure hope Harry Potter stays in, it'll be a massive **** up if it doesn't. One year and their out! Ha!
 

spicy

Giga Poster
Should NBC Universal turn down the deal, Blackstone can then approach third parties and attempt to sell all of Universal Orlando, according to terms of the contract.

So Blackstone could potentially sell 100% of the shares to Merlin/themselves. I wonder if they would be allowed to keep the Universal name if they did do this.

Blackstone are playing this dirty I think. Its more than just selling 50% because they want out, they are now competing with Universal with Legoland Florida, the Busch Parks etc. To overtake one of their main competitors in Universal would be a huge deal.
 

Artichoke

Mega Poster
I'm a little in shock.....

I just hope and PRAY that they're no huge changes for US. I hope they don't make some kind of a **** up. Because I'll be pissed. That's risky.
 

marc

CF Legend
Blackstone wont sell to Merlin as they are the same, if they were going to do that then they may as well keep the shares. They can not sell 100% as they only own 50% and they are looking to sell their 50%.

Merlin (Blackstone) already have Sea World, Busch, Legoland and this new project which is probably why they want to sell their 50%.

Due to Harry Potter the parks made a large profit last year so now would be a good time to sell. They were locked in for a number of years and that lock in time is now up.

This sale will be to either a new company or the one that owns the other 50%. They do have to sell their 50% to other people 1st, if no one wants it then yes they can sell the whole park but I do not think it would come to that.

This type of parks are not something Merlin tend to run and if they lost all the film tie ins the park would be finished anyway. I can see what you mean though, no one buys the 50% so Merlin can buy 100%, it is dirty but possible.

Maybe even Warner will buy the other 50% who knows.
 

spicy

Giga Poster
Should NBC Universal turn down the deal, Blackstone can then approach third parties and attempt to sell all of Universal Orlando, according to terms of the contract.

I don't know what your source for that is, but I was under the impression 'all of' meant 100%

There seems to be no majority shareholder here if its a straight 50/50 split so im not sure if Blackstone would be able to sell/buy 100% as you would have to be majority shareholder to do so.
 

spicy

Giga Poster
This is whats worrying:

The parks’ use of brand names and popular characters may be at risk if the company is sold.

If a buyer other than NBC Universal acquires Blackstone’s stake, “it could impact our continued use of the ‘Universal’ name and certain intellectual property” within 30 months after a change in control, according to the filing.

And:

The agreement with Warner Bros. may terminate if the park isn’t 50-percent owned by one of the partners or if the new owner doesn’t meet “certain financial and reputation tests,” according to the filing.

Sounds like the parks could get pretty messed up if NBC Universal doesn't buy the 50% stake.

Looks like they need to find the $1.55 Billion pretty soon from somewhere!

Either way, this is a win, win situation for Blackstone.
 

Mark

Strata Poster
^ I presume this is reasonably good news?

If Warners were to pull out they could always ship Harry Potter over here and have a whole theme park just for that though :)
 
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