With Comcast buying Dreamworks Animation, what will Disney do in response?
Disney could try and respond by buying another media company but it could probably be blocked by the Justice Department on antitrust grounds. Disney has well over 20% of the movie business and will actually be over 25% and maybe close to 30% this year. I am not even sure the Justice Department should let Universal buy Dreamworks because Universal already is one of the top 3 studios but this is more likely to be approved while even if Disney went after Lionsgate it would give Disney over a third of annual box office and for the dreamers WB would give them over 50% so it could never be allowed.
They could buy Hasbro which would also give them the my little pony and transformer movies and games and their toy manufacture but do they really want to be in the toy manufacturing business when they make so much on licensing the toys without the risk? Same goes for buying Electronic Arts. I would stay out of this business because of the risks.
Wild card could be buying Seaworld. Now that Seaworld has given up on breading Killer Whales they have a future but need something more. If Disney did buy them it would add a 5th gate and automatically dramatically increase Seaworlds attendance without hurting any of the 4 existing WDW parks. They could also add a catagory of season pass which would add either Disneyland or Disney World. I would consider buying an upgraded pass as I live in the north and would consider visiting both Bush Gardens and Seaworld Orlando if the price was reasonable, around $50.00 more than my premium annual pass now.
The only other option I can see is to take the extra money they are making from their movies and build build and build. All the financial reporters are talking about is how Disney will break 6 billion worldwide box office this year and break Universal's 2.5 billion north american numbers. Well they are way off. Disney will break 8 billion worldwide this year and 3 billion in North America. This is what I want them to do.
Disney has to start spending and doing things to build their market share. They have so much money and killing in all their businesses but they can't rest now. They will eventually lose market share in the movie business as no one stays on top forever. They need to build more theme park business now while they have the money rolling in. Thanks to Comcast they know they have to act now and because Shanghai is just about finished they have no excuse. Invest now.
Disney could try and respond by buying another media company but it could probably be blocked by the Justice Department on antitrust grounds. Disney has well over 20% of the movie business and will actually be over 25% and maybe close to 30% this year. I am not even sure the Justice Department should let Universal buy Dreamworks because Universal already is one of the top 3 studios but this is more likely to be approved while even if Disney went after Lionsgate it would give Disney over a third of annual box office and for the dreamers WB would give them over 50% so it could never be allowed.
They could buy Hasbro which would also give them the my little pony and transformer movies and games and their toy manufacture but do they really want to be in the toy manufacturing business when they make so much on licensing the toys without the risk? Same goes for buying Electronic Arts. I would stay out of this business because of the risks.
Wild card could be buying Seaworld. Now that Seaworld has given up on breading Killer Whales they have a future but need something more. If Disney did buy them it would add a 5th gate and automatically dramatically increase Seaworlds attendance without hurting any of the 4 existing WDW parks. They could also add a catagory of season pass which would add either Disneyland or Disney World. I would consider buying an upgraded pass as I live in the north and would consider visiting both Bush Gardens and Seaworld Orlando if the price was reasonable, around $50.00 more than my premium annual pass now.
The only other option I can see is to take the extra money they are making from their movies and build build and build. All the financial reporters are talking about is how Disney will break 6 billion worldwide box office this year and break Universal's 2.5 billion north american numbers. Well they are way off. Disney will break 8 billion worldwide this year and 3 billion in North America. This is what I want them to do.
Disney has to start spending and doing things to build their market share. They have so much money and killing in all their businesses but they can't rest now. They will eventually lose market share in the movie business as no one stays on top forever. They need to build more theme park business now while they have the money rolling in. Thanks to Comcast they know they have to act now and because Shanghai is just about finished they have no excuse. Invest now.
