consideredpartof thetheme parks,sincetheyderive their
revenue almost exclusively from visitors to these parks.
- Consumer products, a grab bag of businessesincluding
Disney’s retail outlets, its licensing revenues, software,
interactive products, and publishing.
This breakdown reflects Disney’s reporting in its annual
report. In reality, embedded in these four businesses are
several smaller businesses that Disney is in, including:
- Cruise lines. Disney operates two ships—Disney
Magic and Disney Wonder—that operate out of
Florida and visit Caribbean ports. - Internet operations. Disney made extensive
investments in the Go network and other online
operations. While much of this investment was
written off by 2002, it still represents a potential
source of future revenues. - Sportsfranchises.DisneyownstheMightyDucksof
Anaheim, a National Hockey League franchise; in
2002 itsolditsstakeintheAnaheimAngels,aMajor
League Baseball team.
Absent detailed information on the operations of these
businesses,wewill assumethat theyrepresenttoo smalla
portionof Disney’soverall revenuesto make a significant
differenceintheriskcalculation.Forthefourbusinessesfor
which we have detailed information, we estimated the
unlevered beta by looking at comparable firms in each
business.The followingtable summarizes the comparables
used and the unlevered beta for each of the businesses.