Disney and DeSantis Reach Agreement, Paving Way for $17 Billion Investment in Florida Parks

Key Points

• 1. Disney (DIS) and Governor Ron DeSantis' appointees have reached an agreement for a $17 billion investment in Florida parks. 2. The 15-year development agreement includes the potential addition of a fifth major theme park, new hotel rooms, and retail spaces. 3. The settlement ends nearly two years of litigation and includes commitments to infrastructure projects, local construction contracts, and affordable housing investments.

In this news

The Walt Disney Company (DIS) and Governor Ron DeSantis' appointees have reached a significant agreement that could see Disney investing a staggering $17 billion into its Florida resort over the next 15 years. This landmark deal, which comes after nearly two years of legal disputes, includes the potential addition of a fifth major theme park at Walt Disney World, along with new hotel rooms and retail spaces.

The new development agreement between Disney (DIS) and the Central Florida Tourism and Oversight District is set to last for 15 years. Under the terms of the deal, Disney will donate land for infrastructure projects, award construction projects to Florida-based companies, and invest in affordable housing in central Florida. This agreement marks a significant shift from the contentious relationship that had developed after DeSantis took control of the district from Disney supporters due to the company's opposition to Florida's "Don't Say Gay" law.

The settlement has also brought an end to state court lawsuits between Disney (DIS) and the district, dismissing claims related to control over design and construction at Disney World. This resolution not only clears the legal hurdles that have plagued both parties but also sets the stage for a new era of growth and development for Disney in Florida. The potential economic impact of this investment is substantial, promising job creation and enhanced tourism in the region.