Disney, Shanghai moving forward on park deal

Walt Disney Co. and the Shanghai government have entered the final stages of negotiations regarding the opening of a new Disney theme park. This past Thursday, Disney executives and the Shanghai municipal government signed a project proposal (subscription required) that outlines the extensive legal and financial requirements of the construction of Disney's first mainland theme park.

Though the project - now over a decade in production - appears to be well underway, the Disney spokesperson who confirmed the signing also made clear that the company has signed no contract and has no deal with the Chinese government for the proposed Shanghai park. Shanghai government officials have all declined to comment.

The proposed deal details the new park, slated for opening as early as 2014, as reaching a cost of $3.59 billion before completion. The primarily rural area near the Pudong International Airport has been chosen as the most likely construction site for the project. If the proposal is accepted, Disney would take a 43% equity stake in Shanghai Disneyland with a joint-venture holding company owned by the the Shanghai government taking 57% ownership. The plan outlines only the first phase of construction encompassing the theme park, hotel and shopping center to be built over six years. If any plans beyond that are being discussed, they have not yet been revealed.

At 60 pages in length, the project proposal will require approval from high-level officials within the Chinese central government. It is speculated that this can take as long as a year as it navigates the many levels of the Chinese bureaucracy and may very well be altered along the way as negotiations continue.

Read Lifthill's previous articles regarding Shanghai Disney:

Nov. 2007 - Shanghai Disneyland plans moving ahead?

Feb. 2008 - Shanghai Disneyland ready to move forward?

Dec. 2008 - Disney-Shanghai deal soon to be finalized?