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Universal's Epic Universe Wish List & Speculation

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Increasing dividends and buyback shows their confidence in being able to dole out cash in a more normal manner. Disney suspended its dividend for basically a year due to all of this, so if Comcast turns the corner sooner, it could be a sign they are looking at hitting the ground for EU as they return to a normal time.
Stock buybacks do nothing economically - you’re just repositioning cash from Comcast’s pocket to the shareholder’s pocket. While it does cause the stock price to go up, that’s not *why* companies do it. They do it to lower their cost of borrowing. Equity financing is more expensive than debt financing because if things fall apart debt holders get first dibs while shareholders are stuck with a worthless piece of paper.

The cost of borrowing is what companies use as their discount rate when building out the financials for a project like EU. So specifically for that project there are two implications:
1) it should be easier to approve because the bar to get over will now be lower (why some people call the discount rate a hurdle rate), but
2) they might *have* to drive the cost of borrowing down by a ppt or two to make it work again if some of the assumptions have to be dialed back post-Covid.

No idea on the second one, but it wouldn‘t surprise me if it was actually rather close first time it was approved. But thinking of the company as a whole, with interest rates so low it makes good sense to retire old notes with new notes and pull back on equity.
 
Stock buybacks do nothing economically - you’re just repositioning cash from Comcast’s pocket to the shareholder’s pocket. While it does cause the stock price to go up, that’s not *why* companies do it. They do it to lower their cost of borrowing. Equity financing is more expensive than debt financing because if things fall apart debt holders get first dibs while shareholders are stuck with a worthless piece of paper.

The cost of borrowing is what companies use as their discount rate when building out the financials for a project like EU. So specifically for that project there are two implications:
1) it should be easier to approve because the bar to get over will now be lower (why some people call the discount rate a hurdle rate), but
2) they might *have* to drive the cost of borrowing down by a ppt or two to make it work again if some of the assumptions have to be dialed back post-Covid.

No idea on the second one, but it wouldn‘t surprise me if it was actually rather close first time it was approved. But thinking of the company as a whole, with interest rates so low it makes good sense to retire old notes with new notes and pull back on equity.

Great summary. Now is the perfect time for a company to invest in projects at a lower interest cost.
 
Even if the park gets built, is anyone worried about new attractions going forward considering the massive loss of talent at Universal Creative. Like, are the people who made Diagon Alley, Super Nintendo World, or Hagrid's still there or have they been scattered to the winds?
 
Even if the park gets built, is anyone worried about new attractions going forward considering the massive loss of talent at Universal Creative. Like, are the people who made Diagon Alley, Super Nintendo World, or Hagrid's still there or have they been scattered to the winds?
Well for EU, I think most of the true work is likely done for the opening of the park, it’s rumored plans were done for Pokemon but held back, so that may be ready to go as well. For Orlando purposes, slide over SLOP, fills your attraction quota for the next decade.

I’d say no mainly because so many projects are going to be halted, cancelled, or moved that I feel a lot of the upcoming stuff we’ll be seeing wre stuff that was worked on throughout the 2010s. I said it in another thread but I know an imagineer in their 20s who kept work, many older ones did not. I bet it’s simply a cost matter, doesn’t mean their isn’t talent at those levels though.
 
I’m assuming this is a canceled attraction concept
 

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Even if the park gets built, is anyone worried about new attractions going forward considering the massive loss of talent at Universal Creative. Like, are the people who made Diagon Alley, Super Nintendo World, or Hagrid's still there or have they been scattered to the winds?
Nah. Universal could start hiring tomorrow and get equal amount of talent back.
 
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