Disney Closes Walt Disney World Due to Coronavirus

Disney (NYSE:DIS) is closing its entertainment complex Walt Disney World in Florida, following the coronavirus outbreak. The company also said it will close Disneyland Paris and suspend Disney Cruise Line departures.

Yesterday, Disney announced the closure of its famous Disneyland resort in Anaheim, California. The epidemic has forced Disney to close all of the eleven theme parks across the US, Europe and Asia.

The mass media company said the crew members will get paid over the closure period. Disney’s hotels, shopping and dining complexes at Walt Disney World and Disneyland Paris will stay open for the time being.

The Magic Kingdom is the most visited theme park in the world, which accommodated over 20 million visitors over 2018, as reported by AECOM. Disney has invested billions in its theme park business. Last year, Disney opened two new Star Wars-themed areas in Florida and California. The company introduced a new ride-through attraction called "Mickey & Minnie's Runaway Railway" at Disney's Hollywood Studios last week.

Theme parks are of major importance for Disney’s entertainment business. The company made over $26 billion in sales at its Parks, Experiences and Products division last year, accounting for 37% of its overall revenue. The suspension will leave a major impact on the entertainment company.

Disney has recently appointed new Chief Executive Bob Chapek, who replaced Bob Iger. Bob Chapek was previously CEO of Disney Parks.

Shares of Disney have dropped over 20% since the appointment of Chapek as the epidemic paralyzed the company’s businesses by forcing Disney to close theme parks, postpone the release of "Mulan" etc.