Mediatech Capital Partners managing partner Porter Bibb and Circle Squared Alternative Investments president Jeff Sica weigh in on Disney’s market performance.
Shares of Disney and other amusement park operators soared Thursday after members of the California State Assembly filed a bill allowing larger venues to reopen faster than current state guidelines for coronavirus pandemics.
The bill is co-sponsored by Sharon Quirk-Silva Assemblywoman and Republican Assemblywoman Suzette Martinez-Valladares. If the bill passes, large theme parks with a capacity of 15,000 or more visitors could reopen when their home country enters the ‘orange’ or moderate low, as defined by California’s guidelines for COVID-19 case totals.
Under current state guidelines, smaller theme parks were allowed to reopen when their home country enters the orange layer, while larger parks had to wait for their country to hit the ‘yellow’ or minimal tear.
“By opening our theme parks, we will create a ripple effect on our local economy and, in turn, create more jobs,” Martinez-Valladares said in a statement obtained by the Orange County Register. “It is time to offer clear guidelines that balance public health and the need to get people back to work safely, and this bill is the first step.”
The theme parks in California have been closed for months because government officials have set strict guidelines to combat the totals of the number of cases.
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Disney representatives did not immediately return a request for comment on the bill.
| 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% during Thursday’s trading on the news. Shares of other amusement park operators, including Six Flags, SeaWorld and Comcast, also rose.
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In November, Disney announced it would lay off 32,000 workers in the first half of fiscal year 2021, including 28,000 employees in the park division. Executives were critical of California Governor Gavin Newsom and other officials for their implementation of restrictions that kept parks closed.