Minnie Mouse during the new Magic Happens parade on US Main Street inside Disneyland in Anaheim, CA, on Thursday, February 27, 2020.
Jeff Gritchen | Orange County Register | Getty Images
Disney shares rose up 5% in late-day trading on Monday after California offered new guidelines that allow amusement parks to reopen in the state on April 1st.
The rally is set to add more than $ 15 billion to Disney’s market cap, reaching about $ 360 billion.
Disneyland and other parks in California have been closed for about a year due to coronavirus restrictions, although other states, such as Florida, have allowed the reopening of limited-capacity parks. Disney has not yet offered a reopening date for its parks in California, but Disney and other theme park owners, including owner of Universal Studios NBCUniversal, have argued with California officials to allow a limited reopening.
The new state orientation allows the reopening of amusement parks from April 1, with a capacity of 15% to 35%, depending on the prevalence of the virus in the community. Masks and other health precautions will be required.
The closure has forced Disney to lay off tens of thousands of workers and reduced a major source of revenue for the media company. Disney said its parks and experiences sector saw a 53 percent drop in revenue in the December quarter from $ 3.58 billion last year. Disney said coronavirus closures cost the division about $ 2.6 billion in lost operating revenue for the quarter.
Officials are becoming increasingly optimistic about a return to normalcy as more people are vaccinated against Covid-19. The Centers for Disease Control and Prevention said Monday that people who have been completely vaccinated can meet safely indoors without masks. While its parks in California have remained closed to visitors, Disneyland recently began helping public health efforts by serving as a vaccination site for state residents.
In addition to the news about theme parks, Disney could also gain in its film activity. Several theaters in North America opened, with 45% of theaters in the region open last weekend, compared to 42% last weekend, according to Comscore.
The move came on a mixed day for markets, with many technology and social media companies falling while some traditional media companies gathered. For example, ViacomCBS shares increased by up to 8% and Discovery shares increased by more than 2%.
Disclosure: NBCUniversal is the parent company of both Universal Studios and CNBC.
– CNBC Sarah Whitten contributed to this report.
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