Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan

Lower inflation makes the market more stable, enabling JPMorgan Chase customers to get credit at a lower interest rate. “Government green drive also opens an opportunity for procurement of J.P. Morgan Chase products by the state as well as federal government contractors.”, which means new tax policies may have a significant impact on the way they operate and provide new opportunities for more profitable capabilities for existing participants such as JPMorgan Chase. The new technology provides opportunities for JPMorgan Chase to implement a differentiated pricing strategy in new markets. This will enable the company to maintain its loyal customers with good service and attract new customers

Market power in banking, for example, may, to a degree, be beneficial for access to financing. With too much competition, banks may be less inclined to invest in relationship lending .At the same time, because of hold-up problems, too little competition may tie borrowers too much to an individual institution, making the borrower less willing to enter a relationship (Claessens, 2009). More competition can then, even with relationship lending, lead to more access. Financial managers must be aware of its firm's competition and ensure a proper balance for financial

To answer the main question of the case, we must think of the main problems that it faces. We need to find the solution for Bob Iger. What to do with Disney: to make some improvements in the existed company to compete better with Pixar, or to make a deal with another studio? Or should he work more with Pixar, or maybe just buy the whole company?

Disney’s acquisition of Pixar had both benefits and implications for both parties involved. By acquiring Pixar, Disney was given access to Pixar’s proprietary technology, which was an important factor, as well as access to new characters. These characters provided a new source of income for Disney, not just for movies, but also to use in theme parks, merchandise stores, etc., meaning new characters would supply immense revenue streams for Disney in several forms. Disney also gained strengthened market power, as acquiring one of their rivals would give them a competitive advantage and would simultaneously make them more powerful in the market. Additionally, Disney was never very successful with their animated movies, and acquiring Pixar would

On the other hand, from Chase's point of view, they should not alter any more of the covenants of the commitment letter. They have already been flexible enough with Disney in giving them most of their demands. However, they

Firstly, the acquisition would cause Disney’s market power to rise due to the increase of its resources and capabilities to compete in the industry and also a greater share in the market. This is of great importance due to the intense competitiveness in the industry that is dominated by only a few key players. Any increase in

Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company (Ovidijus Jurevicius).

Tokyo Disneyland was opened to the public on April 15, 1983. This amusement park was owned and operated by an unrelated Japanese corporation. The Walt Disney Company received royalties, paid in Yen, on certain revenues generated by Tokyo Disneyland. This new overseas business venture was bringing some concern about the foreign exchange risk to Disney. The management team at the Disney has been considering hedging future Yen inflows from Disney Tokyo since 1985. Mr. Anderson, the director of finance at The Walt Disney Company, focused his attention on a possible 15 billion ten-year term loan with an interest rate of 7.5% paid semiannually. On the other hand, Goldman Sachs, who had been working with

Overall Disney is in a better financial position than its competitors Time Warner and Fox. Disney’s financial ratios have been rising at a pretty consistent rate which shows Disney’s stability and

One of Citigroup’s main concerns was the risk of their exposure from holding leveraged loans. Due to the increasing risks and

1) What is the Disney Difference and how will it affect the company’s corporate, competitive and functional strategies?

This was a result of a major chance in business conditions, or assumption of too much financial risk by the issuer.

So in the first strategy Chase would be single mandate arranger with 4 banks to act as sub-underwriters

When there is asymmetric information in the financial markets, borrowers may behave as if they are constrained financially. The

Participating in a syndicated loan gives banks the opportunity to achieve diversification in their own loan portfolios and liquidity. One of the main advantages of syndicated loans is the fact that participating banks share the risks of the lending, therefore they can participate in a big project which would enhance their name and yet the losses would be shared with other banks and the losses would be less than if they funded the loan alone, that is of course in case of default. In addition, participating banks play an important role by providing informative opinions and expertise and financing options to the