Disneyland, Inc.

Start up

Disneyland, Inc. (DLI) was incorporated in the State of California in 1951 by Walt Disney. A companion company owned only by Walt Disney originally called Walt Disney, Incorporated then WED Enterprises (WED) was set up in 1952 supposedly only for television production, but was used to design Disneylandia and its attractions. As the board of directors of Walt Disney Productions (WDP) was questionable in its support for the project. In March 1953, WDP board of directors agreed to Walt Disney's personal services contract and WED's contracts for designing and building Disneyland park attractions for cost plus overhead with three board directors resigning.

The Stanford Research Institute was hired in April 1953 to determine the best park location and an amusement parks and public attractions analysis for US$32 thousand (K) while WED started designing Disneylandia with Bill Martin signing on to do so. By July, Disney directed the institute to look at 100+ acre Southern California location. Also that month, one of the Disney brothers had an initial meeting with American Broadcasting-Paramount Theatres's Leonard H. Goldenson about Disneyland financing for Disney Production film inventory.

Roy met in August 1953 with the Stanford Research Institute over the Disneylandia location survey's 10 possible location settling on an area along the Santa Ana Freeway in Anaheim. Soon, a 160-acre grove of orange trees, the Ball Road subdivision, was purchased for US$879 thousand. An additional 270 acres were purchased for the site by a real estate agent, followed by a separate purchase of 244 more acres.

The first park diagram plan was completed by Marvin Davis on August 8, 1953 with Walt adding the triangular space bounding the park for the railroad. On September 25, Davis finished his second version design with the hub layout. On the following day Walt and Herb Ryman started a 42-hour period in which they drew a 43x70 inch detailed aerial view. During the year, Key Disney staff members toured major American amusement parks to find out what does not work.

With the WED concept designs and prospectus for Disneyland, Roy Disney in September 1953 met with TV networks CBS and NBC in a deal for Disney-produced TV show and Disneyland investment. Both showed interest in the TV shows but not for the Disneyland investment. Roy then approached American Broadcasting-Paramount Theatres's Goldenson, who had pursued Disney for programming before, who agreed to the Disneyland, Inc. investment as the risk to make ABC a major network. Just a week after Disney set a record for receiving 4 Oscars on March 29, 1954, the ABC-Paramount board approved the Disney deal. Despite some WDP board resistance, WDP board approve the agreement which was signed on April 2.

American Broadcasting-Paramount Theatres (AB-PT) agreed to invested $500K in Disneyland, Inc. taking a 34.49 percent and guaranteeing $4.5 million in bank loan plus a weekly TV programming for ABC from Walt Disney Productions. Joining AB-PT as Disneyland investors were Walt Disney Productions, Western Publishing and Walt Disney. The other shares were 34.48% by Walt Disney Productions (US$500K investment), 13.8% by Western Printing and Lithography Co (US$200K investment), 16.55% by Walt Disney (US$250K investment). Walt Disney Productions had the option to repurchase the Walt Disney, WED and Western Publishing shares (31%) by May 1, 1959 for $562,500. WED held ownership of the Disneyland Railroad.

Disneylandia was announced that in April 1954 by Walt to be opened in July 1955. While some time in 1954, Walt at the urging of ABC TV, the park's name was changed from Disneylandia to Disneyland.

With a need for a hotel nearby and no funding available for Disney to build it, Walt Disney approached Hilton and Sheraton Hotels about building such a hotel. Both turned down Disney as they had no idea where Anaheim was. Disney began approach prospective investors for the Disneyland Hotel in 1954 which included Jack Wrather who agreed. Wrather-Alvarez Hotels, Inc. was expected to have the hotel opened in 000000001955-11-01-0000November 1955.

AB-PT's subsidiary, UPT Concessions, Inc. was enlisted to operate Tomorrowland's Space Bar (original name Stratosnak) and various other concession stands in Disneyland. On 000000001955-03-29-0000March 29, 1955, the Atchison, Topeka & Santa Fe Railway was one of many companies that sponsored attractions in the park with its 5-year sponsorship of all Disneyland trains and stations at the park's opening agreed.

Rear Admiral Joseph W. Fowler was hired in April 1954 as senior vice president for engineering and construction to oversee building Disneyland. Work began on the site in July with the removal of the first orange tree. A 1955 strike by the Orange County plumbers and asphalt workers puts the Disneyland building schedule in jeopardy.

Operational

On July 17, 1955 at 2 PM, the Disneyland park with Five themed "lands" containing eighteen attractions opened. 15 thousand guests were invited to the opening event, but it is believed that 28 to 33 thousand came to the park. The total construction cost came to $17 million.

By 1955, WDP had advanced DLI $2.4 million. WDI also took out its AB-PT guaranteed bank loan for $4.4 million in installment payments with the final payment in April 1962. The loan is secured by Disneyland real and certain personal properties, leasehold and the TV programming contract revenue which if Disneyland defaults AB-PT may purchase the loan. On 000000001957-06-29-0000June 29, 1957, Disney Production exercised its options to purchase all but AB-PT's common stock outstanding. This allowed WDP to consolidate DLI into its 1957 annual accounting statements adding four months worth of net profits, $511K.

By 1958, Walt Disney Productions reported a profit of $2.9 million, primarily attributable to its by then 65% interest in Disneyland, Inc. Additionally, Walt Disney Productions stock (which moved the year prior to the New York Stock Exchange) had grown to around $60 per share thanks to the growing realization by the financial markets of the profitability of the park.

On 000000001959-06-14-0000June 14, 1959, the WED owned Disneyland-Alweg Monorail System is installed in Tomorrowland.

In June 1960, Walt Disney Productions completed the purchase of AB-PT's share of the company for nearly $7.5 million and its TV contract, and the theme park became a fully owned part of Walt Disney Productions. April 25, 1961 Walt Disney Productions and Disneyland, Inc. was able to pay off all existing loans.

Finally, in 1982, the Disney family sold the naming rights and rail-based attractions, owned then by Retlaw Enterprise (formerly WED), to the Disney film studio for 818,461 shares of Disney stock then worth $42.6 million to the Disney family.

ABC deal programs

The investment contract for Disneyland with American Broadcasting-Paramount Theatres included programming for ABC TV, which paid $5 million per year during 7-year contract and is the largest TV package deal in history.