Even as it churns out the most impressive results in its history, Universal Orlando finds itself suddenly thrust back into ownership turmoil.
A move by the Blackstone Group, the private-equity firm that has co-owned Orlando's No. 2 theme-park resort since 2000, to put its Universal stake up for sale has triggered a chain of events that could ultimately lead to the entire resort being put back on the auction block.
A sale could have huge implications for Universal. Some of the resort's most important licensing contracts — including its agreement with Warner Bros. for the rights to Harry Potter — include provisions in which Universal could lose those rights if it is acquired by a new owner.
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People with all of the companies involved — Universal Orlando; co-owners Blackstone and NBCUniversal Media LLC; and NBCUniversal's new owner, Comcast Corp. — say it is too early to predict the ultimate outcome.
But Universal executives vowed Wednesday that the uncertainty would not blunt the momentum the resort has built since opening its smash-hit Wizarding World of Harry Potter last June. It is, after all, a familiar scenario for a resort that over the years has been passed between a Japanese electronics manufacturer, a Canadian liquor company, a French media concern and an American industrial conglomerate, among others.
"We have worked with several ownership partners throughout our 20-year history and have always been successful, thanks to our great attraction experiences and the world-class service we provide to our guests and to one another," Universal Orlando Chief Executive Officer John Sprouls wrote Wednesday in an e-mail to Universal's roughly 16,000 employees. "You can have confidence that Universal Orlando Resort will remain strong and stable."
Blackstone set the wheels for a sale in motion earlier this month by making a formal offer to sell its half of the resort to fellow co-owner NBCUniversal, the media-and-entertainment conglomerate. Universal disclosed the offer in a securities document filed Monday with federal regulators.
NBCUniversal now has three months — until June 12 — to accept the offer and buy out the private-equity firm. If it doesn't, Blackstone has the right to seek an outside bidder to buy both sides' stakes in Universal Orlando, according to the terms of the two companies' joint-ownership agreement. What's more, NBCUniversal would be compelled to sell if Blackstone were able to find a rich enough offer.
Eep!
Uh... personally I don't think anything particularly BAD will happen. If a new owner comes in and takes out, say, HHN or Mardi Gras or Potter (in the article), the resort will be in a world of trouble. Those things make money, and without them, a huge attendance drop will occur.
One thing that does worry me however is Marvel. If a new owner comes in, Disney is probably going to want to take Marvel out of Universal... and boy, I pray this doesn't happen.
But either way, we're just going to have to wait and see.
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