For nearly a century, The Walt Disney Company has been based primarily in California. But according to a new report from the Orlando Business Magazine, things may change soon as the company believes it is considering moving a number of its divisions to Florida.
Jack Witthaus and Richard Bilbao write that Disney could move part of its business to Lake Nona, a master-planned community in southeast Orlando. The move comes as a number of companies, including Hewlett Packard Enterprise, have announced relocations to southeastern states, which tend to be more tax-friendly and supportive of businesses. It is understood that Disney has not yet signed an agreement with the community, and it is not certain which departments or how people would make the move.
Recently, Disney has had an open battle with California, particularly over the state’s COVID-19 restrictions, which have kept Disneyland resort parks closed since March. Meanwhile, Florida’s guidelines have allowed Walt Disney World’s parks to be open since July.
A Disney spokesman told Witthaus and Bilbao: “As the largest employer in Central Florida, we are always exploring opportunities for additional locations in the vicinity of our theme park, but there is nothing concrete.” The developer of Lake Nona, Tavistock Development Co., did not comment on the story.
Jeff Sweeney, a managing director of Cushman & Wakefield, who is not involved in the possible move, said Disney had ‘compelling reasons’ to move more of its divisions to Orlando, saying:’ We’ve seen time and time again in the past 12 months, companies have left California for other business markets. You see what with the [theme] parks in California versus Florida. This is a major financial impact on the organization, along with the cost of operations and personal income tax for employees, in addition to other California regulations. ”
Tuna Amobi, director and industry analyst for CFRA Research, added that it is unlikely to be a complete relocation, especially since the film and television production is already based in Los Angeles and New York. More likely, these are the theme park sections to relocate, probably additional support and operations sections, many of which are already in Central Florida. Amobi also expressed a lack of surprise over the rumor, saying: ‘The Covid situation is not under control despite the progress of the vaccine, [but] it gives investors hope. ”
Keep reading WDWNT as we learn more about this ongoing story.