News Disney and Fox come to terms -- announcement soon; huge IP acquisition

[Rodan75]

https://deadline.com/2018/06/21st-c...per-year-to-push-through-takeover-1202413265/
https://variety.com/2018/tv/global/disney-fox-sky-news-15-years-1202850724/

That feels like Disney doing what is required, lip service to being serious. Disney doesn’t get SKY News unless Fox buys SKY, which is crazy unlikely now.

 

[Rodan75]

Yah, if Comcast becomes very cash-strapped, it will hurt their ability for continued self-investment in all their divisions, say, for example, expanding their parks. Now, I'm not saying they won't have a few billion to build the new gates, but, they won't have the billions needed year after year to catch up to Disney in any meaningful way seeing that Disney is currently throwing billions each year into all their parks to improve them.

There was a rumor that Comcast could sell the Fox US entertainment assets to help bring down the debt. But no clue if that was serious, or just blogger wishes. That follows the narrative that what Comcast really wants are SKY, Star and the RSNs.

 

[gmajew]

That feels like Disney doing what is required, lip service to being serious. Disney doesn’t get SKY News unless Fox buys SKY, which is crazy unlikely now.

The fact governments can force stuff like that is crazy! Sky is a great asset but not with those restrictions on it. Not for a company like disney...

 

[Indy_UK]

I agree. I’ve been thinking this was the most interesting detail of this saga. Comcast’s threat and eventual offer for Fox kept Fox from countering. But Disney could have entered the fray at any moment, which tells me, Disney was always willing to sacrifice SKY.

Also...if Disney really wanted SKY why didn’t they offer to buy SKY in December when the reports came back that ‘it was not in the public interest’ for Fox to buy SKY. And was Disney going to pay more than $52.4B for Fox, if Fox had completed the SKY acquisition (or maybe just assume more debt?). It feels like there hasn’t been much information out there that stated how Disney was going to handle the full SKY purchase.

I may be totally wrong but I do get the sense now that Disney may not be too fussed about having SKY at all. They don't own any cable providers or provide TV services so why start now in a world where everyone is cord cutting, and wanting to ditch traditional TV. Maybe getting into that arena doesn't make sense for Disney. For Comcast that would though.

It's apparent that for Disney this is purely about content and IP bolstering for the long term. Maybe their 39% of SKY would be sold on to Comcast in return for sole ownership of Hulu?

 

[Indy_UK]

The fact governments can force stuff like that is crazy! Sky is a great asset but not with those restrictions on it. Not for a company like disney...

I like having SKY but as a company I don't think their subscriber base is increasing. It seems like people are constantly battling with them for better deals or threatening to leave altogether which SKY always gives into

 

[Rodan75]

The fact governments can force stuff like that is crazy! Sky is a great asset but not with those restrictions on it. Not for a company like disney...

In the big scheme of things, it is a small concession. $2B over 15 years, a rounding error for them.

 

[seascape]

There was a rumor that Comcast could sell the Fox US entertainment assets to help bring down the debt. But no clue if that was serious, or just blogger wishes. That follows the narrative that what Comcast really wants are SKY, Star and the RSNs.

The first round of negotiations resulted in Fox picking Disney for 2 basic reasons. The first was no breakup fee and the second was that if the Regional Sports Networks had to be divested they would go back to New Fox because Comcast did not want the tax liability in a sale. So it is clear the RSNs are not the key properties Comcast wants.

 

[gmajew]

In the big scheme of things, it is a small concession. $2B over 15 years, a rounding error for them.

LOL 2B is not a rounding error for any business.... the fact it is spread over 10 years is easier to swallow... but I dont like governments telling you how to run your business....

 

[Indy_UK]

Matt Hancock is a wet lettuce, he's only making these demands to make him sound like a big man

 

[smile]

Matt Hancock is a wet lettuce, he's only making these demands to make him sound like a big man

i don't know anything about the guy... but for some reason, i believe you


i'm cool on either side of this gov thing...
can respect they want to keep an eye on things, just as i can respect any company for balking at such proposals

 

[Indy_UK]

 

[Quinnmac000]

There was a rumor that Comcast could sell the Fox US entertainment assets to help bring down the debt. But no clue if that was serious, or just blogger wishes. That follows the narrative that what Comcast really wants are SKY, Star and the RSNs.

Comcast already said they would sell off the RSN and reduce the stake in Hulu....so I think those are the two things they don't want.

 

[pdude81]

I wouldn't assume that they don't want those assets because they can survive without them and selling them off might help grease the wheels for broader approval. Why wouldn't Comcast want a monopoly on regional sports networks and a controlling stake in Hulu?

 

[Rodan75]

Comcast already said they would sell off the RSN and reduce the stake in Hulu....so I think those are the two things they don't want.

I knew about the Hulu part. Not about the RSN part, that is interesting. Because they really don’t need Fox IP or TV production capacity. So is this all about ego, SKY and Star?

 

[Rodan75]

The first round of negotiations resulted in Fox picking Disney for 2 basic reasons. The first was no breakup fee and the second was that if the Regional Sports Networks had to be divested they would go back to New Fox because Comcast did not want the tax liability in a sale. So it is clear the RSNs are not the key properties Comcast wants.

Didn’t realize that re: the RSNs. Much of the coverage I had read indicated that RSNs were a primary consideration. That makes this whole standoff a bit more confusing.

 

[seascape]

Wednesday's Fox Board meeting will be very interesting. Will they accept the Comcast offer and ask Disney to match it? Very likely, but will Disney have their response at the meeting and if they do will Fox still have the July 10th vote. Personally I want Disney to respond at the meeting and get this over with. All Disney has to do legally is match Comcasts offer and they win. Tomorrow will be interesting and so will the next week.

 

[Quinnmac000]

I knew about the Hulu part. Not about the RSN part, that is interesting. Because they really don’t need Fox IP or TV production capacity. So is this all about ego, SKY and Star?

They want it though....Fox shows sell well internationally. Having those IPs to leverage is great.

 

[tirian]

At this point, the WDC is little more than an IP holder anyway, and the elements that made the company “Disney” — the feeling established by the artists who created the animated shorts and movies stretching from Snow White, to Peter Pan, to Lady and the Tramp and Mary Poppins — barely exists. The Disney Renaissance of the late 80s through mid 90s was considered a return to form, and was therefore successful. For a long time, the public had expectations for something labeled “Disney,” which is why the awful movies from the 70s flopped and the great stuff from the 90s soared.

Now Disney buys a company and fans dictate to each other that the IPs are therefore just as much “Disney” as Mickey Mouse. Corporately owned? Yes. Classically appropriate for the everything that made the company beloved? Rarely.

But hey, if someone suddenly becomes a Marvel or Simpsons fan merely because Disney buys it, it improves my stock value.

 

[HauntedMansionFLA]

Disney already has enough content to make an ESPN streaming service and a global content service with Disney/Pixar/Lucasfilm/Marvel and the rest of their tv content from ABC to Disney XD/Jr.

So I don't see how they lose if they walk away if Comcast makes a stupidly large offer.

Plus, Disney has a huge catalog of The Winderful World Of Disney and things we haven’t seen in years.

 

[the.dreamfinder]

At this point, the WDC is little more than an IP holder anyway, and the elements that made the company “Disney” — the feeling established by the artists who created the animated shorts and movies stretching from Snow White, to Peter Pan, to Lady and the Tramp and Mary Poppins — barely exists. The Disney Renaissance of the late 80s through mid 90s was considered a return to form, and was therefore successful. For a long time, the public had expectations for something labeled “Disney,” which is why the awful movies from the 70s flopped and the great stuff from the 90s soared.

Now Disney buys a company and fans dictate to each other that the IPs are therefore just as much “Disney” as Mickey Mouse. Corporately owned? Yes. Classically appropriate for the everything that made the company beloved? Rarely.

But hey, if someone suddenly becomes a Marvel or Simpsons fan merely because Disney buys it, it improves my stock value.

Well, I hope this deal is TWDC’s snorting coke on the bathroom floor moment. I really would like to see this deal fail and see a breakup of the modern iteration of the company. In an ever more competitive landscape, focus will be of the upmost importance. Owning a bunch of TV/Cable channels and another movie studio and Sat TV services won’t help, they’ll only hinder. This company can’t even properly service their new IPs in the comprehensive way they have for “Disney”, does that remind anyone of a certain American automaker who went bust?