Shanghai Determined to Have a Disney Theme Park

The Shanghai municipal government is in the final stages of negotiating an agreement to open a Walt Disney theme park in the city, with the U.S. company expected to moderate its price demands because of the current economic downturn, Tradingmarkets.com reports.

The report quoted the Shanghai Securities News as saying that Shanghai officials believe that a State Council approval will follow after an agreement is hammered with Disney.

Another source close to the negotiations says Shanghai was determined to have the Disney project and it was only a matter of time before Beijing gives it a green light.

"During the previous rounds of negotiations, Walt Disney sought a price that was too high. However, with the downturn in the US economy, Disney made some concessions in regards to its price," one of the sources is quoted as saying.

The report added that the terms of the agreement relating to intellectual property and ownership structure remain confidential.

The Disney theme park is expected to be built in the Huanglou region, a 10 minute drive from Shanghai's Pudong International Airport.

To support the project, the government will permit 48-hour visa-free entry for transit passengers visiting the park, the report said.

One of the Disney proposals that accompanied the theme park deal is the launch of Disney channels in Chinese, most likely in cooperation with the Shanghai Media Group, the report said.