Walt Disney announced plans to nearly double its investment in its parks, experiences and products segment over the next decade.
Disney (ticker: DIS) said in a filing with the Securities and Exchange Commission Tuesday that it plans to accelerate and expand the investment in its Disney Parks Experiences and Products (DPEP) segment over the course of about 10 years to about $60 billion. This includes investments in its theme parks and cruise lines, the company said.
Disney was the worst performer in the Dow Jones Industrial Average and one of the leading decliners in the S&P 500 Tuesday, falling 3.6% to $81.99. The stock has dropped more than 5.6% so far in 2023.
Disney didn't immediately respond to a request for comment.
Disney said in the filing it believes it has "adequate resources to fund ongoing operating requirements, contractual obligations, upcoming debt maturities as well as future capital expenditures related to the expansion of existing businesses and development of new projects."
The media and entertainment giant's DPEP segment generated revenue of $28.7 billion in 2022, up from the pre-pandemic revenue of $26.8 billion in 2019. Disney said Tuesday that the segment's revenue over the last 12 months was $32.3 billion.
The company said in a blog post Tuesday that there was significant room for land and sea expansion. Disney Parks alone has more than 1,000 acres of land available for possible development. For its cruises, Disney will nearly double the worldwide capacity of its line, adding two ships in fiscal year 2025 and another in 2026.
This decision comes as the company's media segment is in focus for investors following a dispute with cable company Charter Communications (CHTR) about pricing and as Disney grapples with potential sales of certain networks. Disney recently said it was open to considering a variety of strategic options for its linear television business.