Although Disney has seen increases in Disney+ and Hulu’s target enterprise values, there’s still a BIG possibility that the closures could change the company as we know it. And the Walt Disney Company is trying to prepare for its financial future.
According to The Hollywood Reporter, Disney has signed another credit agreement with Citibank for “access to as much as $5 billion.”
This new agreement will mature on April 9th, 2021 and may be extended for another year with the lenders’ approval. Along with other credit agreements they made earlier in the year, Disney has build up more than $13 billion in credit during this uncertain time.
Although Bob Iger has stated that Disney will be affected long-term in some capacity, Disney has been carefully attending to its financial situation. Recently, the company halted construction in the parks, saw a stock surge from Disney+, and acquired more land in Disney World. And now, much like other large companies, Disney is stocking up on credit to face the weeks and months ahead.
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What are you looking forward to doing the most once the Disney Parks reopen? Let us know in the comments below!