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Verizon to Buy Disney?

Discussion in 'Disney Co News & Discussion' started by LAKid53, Jul 2, 2017.

  1. bclane

    bclane Well-Known Member

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    Yah you are right about that. Vivendi was horrible for them. I love the new attitude though and I don't think we'd have SWE on it's way if Universal hadn't of been on such a high quality building spree for the last few years. It's a good time to be a geek!
     
  2. monothingie

    monothingie OOOOWEEEEEEE! Premium Member

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    Another thing is that at least on the parks and resorts part of TWDC the management and leadership culture is wrong. The cause of this is directly attributable to Iger and Company. Personally I think shaking things up at the top may bring about some improvements.

    Also the only reason why you got SWL, TSL, Pandora, NFL was because TWDC had to play catch-up. If USO didn't do anything in the early 2010's you can bet Disney wouldn't be doing anything now.
     
  3. bclane

    bclane Well-Known Member

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    Competition from Uni has been great for us I completely agree. But I am probably one of the minority around here that (overall) likes what Iger has done during his tenure. I don't think he's perfect obviously as there has been some missteps, but overall I'm happy and like where we're headed (for the most part). We could certainly do worse in my opinion. To me, a buyout is a complete unknown and I'd rather deal with current management's bent towards bringing too much IP into the parks but get to enjoy things like SWE and Pandora than to wonder what Verizon or some other suiter might have in store for us. Just my opinion though. I don't see myself or anyone with a differing opinion as being right or wrong. Just different.
     
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  4. Seabasealpha1

    Seabasealpha1 Well-Known Member

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    This is even more ridiculous than the Apple buy-out hot mess rumor...
     
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  5. ppete1975

    ppete1975 Well-Known Member

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    i could see them buying espn and abc. They wouldn't want to be in the theme park business, And losing espn would be great for Disney. Verizon owning espn would make sense.
     
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  6. RustySpork

    RustySpork Well-Known Member

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    It really would be great for Disney to shed ESPN, but I don't know that we'll see it shake off as long as Bob Iger is at the helm.
     
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  7. larryz

    larryz Well-Known Member

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    You won't have to. When Siemens leaves, they'll remove the logos and label it "Spaceship Earth, sponsored by (insert name here)"...
    You'll get all that publicity for free!
     
  8. bclane

    bclane Well-Known Member

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    I agree with dumping ESPN but mostly because they are always beating up on my beloved Miami Dolphins (don't judge me lol). ESPN can kiss my grits!
     
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  9. Ethan999

    Ethan999 New Member

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    There's no way they would be able to find the money to purchase that large of a company. Let alone be able to manage all of the inner companies such as abc or Marvel
     
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  10. ford91exploder

    ford91exploder Resident Curmudgeon

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    Verizon wants to be a content powerhouse. This deal just might happen as a hostile takeover attempt they just bought googles major competitor in search.

    Check your seatbelts and prepare for a wild ride.

    One thing VZ would not be interested in is the parks
     
  11. Mouse Trap

    Mouse Trap Well-Known Member

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    They don't have the cash or leverage for a hostile takeover. Verizon is swimming in debt after the 130B buyout of VZ Wireless. 4.5 billion for Yahoo, yes. 150B+ for Disney? No.

    If anything we'd be looking at a merger here.
     
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  12. FutureCEO

    FutureCEO Well-Known Member

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    Every company will be a monopoly soon.
     
  13. ford91exploder

    ford91exploder Resident Curmudgeon

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    Don't underestimate someone like Goldman-Sachs making the impossible possible plus Disney throwing away cash in the form of buybacks which could be used to finance the deal.

    Also remember if someone like GS makes this deal possible they get paid up front leaving investors to take it on the chin.

    No matter what VZ will be in the drivers seat on this deal

    IF IT HAPPENS
     
    Last edited: Jul 3, 2017
  14. Uncle Lupe

    Uncle Lupe Well-Known Member

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    If she does tell her I am a big fan.
     
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  15. Mouse Trap

    Mouse Trap Well-Known Member

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    Even for GS I find this very unlikely. It would cripple Verizon with debt. I think it would put their debt close to 350B and I just don't see that happening especially when it includes acquiring a huge liability in ESPN. They've just acquired a dead company in Yahoo, so now they want to add to those challenges with ESPN? It's a poor business move. I get that the move would be for the content, but it sounds like Verizon would be way over their heads for this one. Disney simply doesn't generate enough profit to make all this debt worth it.

    Verizon would be far from the driver's seat in this deal. They'd be on their knees for the lenders and it's not like Disney's board is just going to give away the company. They're going to want a nice premium on top of the current share price. It's too massive of a deal for Verizon to take right now. We're looking at a minimum 200B+ deal. For an Apple or a Google this makes sense... but for Verizon?? The money isn't there.
     
    Last edited: Jul 3, 2017
  16. 21stamps

    21stamps Well-Known Member

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    My thoughts- L. O. L.
     
  17. Dead2009

    Dead2009 Well-Known Member

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    Walt would be rolling in his grave if Disney was sold off....his head however...well...the facial expressions would probably be too difficult to reproduce.
     
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  18. Darth Sidious

    Darth Sidious Authentically Disney Distinctly Chinese Premium Member

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    Verizon is too leveraged to make a purchase of this size. Banks can't make this happen because that's not how it works. Banks would have to underwrite a ~$100bn commitment letter with a capital market takeout. Not to mention this would require every bank on the street to be involved.

    Banks are not getting these fees upfront either. There is likely some component of upfront pricing but it is small comparative to the total fees associated with the advisory fee or bridge loan underwriting fees. Banks will get some upfront fee because having a signed commitment letter will eat up capital at the bank for an extended period.

    Lastly, Disney's share repurchases are actually defensive against an acquisition, at least a hostile one. If Verizon acquired a company with more liquid assets they could use those assets to pay down debts post merger.
     
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  19. Phonedave

    Phonedave Well-Known Member

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    I think you would be suprised at the number of "inner companies" that Verizon manages today. Companies you never heard of, operating in markets you never thought about. Not everything has the "big red" logo on it (and the big red logo is sort of being phased out anyway)

    Money on the other hand would be an issue, Verizon is not adverse to risk taking, but this would require leveraging the company to an extremely large extent.

    -dave
     
  20. Bender123

    Bender123 Well-Known Member

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    Disney also has a cap of around $170B...$106 is their share price. In order for this to happen, Verizon would need to leverage almost their entire company against it and pay a massive per share premium, which would never get approved by a board. It would not be out of thought that Verizon is looking at getting into media content, which would mean maybe Disney trying to dump ESPN or some of the non-essential brands.

    Disney would likely never sell off parks, ABC, Marvel or the other movie arms. They are just too profitable.

    Comparing Comcast to Universal is fairly close situation, as Universal was owned by GE, but it only had a Cap of around $6B. Nowhere near the same money levels that would be needed.
     
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