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

[Ripken10]

They don’t have an active film studio, but they still have the premium TV channels.
Patience doesn’t seem to be in good supply at Disney. James spent 20+ years building Star.

Also, “Dangal” made more money in China ($190 Million) than all the Star Wars in China, combined.

Not even close to being true. Rogue One and the Force Awakens by themselves made more than 190 million.

 

[Princess Leia]

As much as I want Disney to just have the rights for F4 and X-Men already, this is an obscene amount of money.

 

[Stripes]

Be careful what you wish for.

Heard about a hit to the parks if this goes through? I wouldn't be surprised, but I'd hope their vision extends further than a short-term balance sheet.

 

[zachrupertdsn]

New Deal Has Been Accepted

 

[marni1971]

Heard about a hit to the parks if this goes through?.

Yes.

 

[the.dreamfinder]

As much as I want Disney to just have the rights for F4 and X-Men already, this is an obscene amount of money.

They could have cut a check for them without buying the studio.

 

[the.dreamfinder]

Not even close to being true. Rogue One and the Force Awakens by themselves made more than 190 million.

I was wrong. My mistake.

 

[pdude81]

Yes.

So this is why we can't have nice things. I'll start clipping my child to the poles on the monorail so he doesn't fall out.

 

[Indy_UK]

Yes.

That will be what's planned post what's already been announced. I doubt it will affect what's happening at WDW for the 50th or th expansion at Paris

 

[pdude81]

They could have cut a check for them without buying the studio.

But then wouldn't the studio that's trying to find a bidder be worth less? It's dangerous to try to sell the tires before the rest of your sports car for a small (additional) profit

 

[marni1971]

That will be what's planned post what's already been announced. I doubt it will affect what's happening at WDW for the 50th or th expansion at Paris

Don’t be too sure. Obviously I can’t go into specifics.

 

[EPCOTCenterLover]

Bummer.

 

[tirian]

Yes.

I’ve heard the same.

 

[the.dreamfinder]

#ThanksFox

 

[happycamperuni]

Fox delaying the July 10 vote also seems to indicate that they're going to entertain a bidding war. Either way, it's possible to see Disney ending up putting up even more billions in cash (and more shares to the Murdochs).

One other big wrinkle here, Murdochs will control even more Disney stock than before. The old offer would have featured the Murdochs with around 4.3% of the Disney shares post-merger.

The new offer means that the Murdochs will control around 6.2% of the Disney stock. New offer is around 111 million shares for the Murdochs (out of a total of 1.8 billion) instead of the old offer of around 85 million shares for the Murdochs (out of a total of 2 billion). There's less overall shares now because a half of the Fox shareholders will take cash (not the Murdochs).

So the Murdochs' share of Disney stock will be around 40-50% higher.

 

[gmajew]

Don’t be too sure. Obviously I can’t go into specifics.

I would think this is what we would blame for cuts that may already be happening anyways based on the track record lately.

 

[Stripes]

Don’t be too sure. Obviously I can’t go into specifics.

Let us know when you can.

This might be something you can't answer, but is this a certainty already? If not what would you say the odds are?

 

[happycamperuni]

Let us know when you can.

This might be something you can't answer, but is this a certainty already? If not what would you say the odds are?

Probably need to see where this all leads; if this is the final bid, then it's probably going to be cash flow changes at the margins (i.e. several hundred million shifted from investment funding to debt payments over the next decade).

But if there's still another higher set of bids, then it could be a more dramatic change. Either way, an extra $35 billion in debt changes investment strategies for sure.

 

[marni1971]

Let us know when you can.

This might be something you can't answer, but is this a certainty already? If not what would you say the odds are?

Nothing more I should say for now aside from it’s already begun.

 

[gmajew]

Probably need to see where this all leads; if this is the final bid, then it's probably going to be cash flow changes at the margins (i.e. several hundred million shifted from investment funding to debt payments over the next decade).

But if there's still another higher set of bids, then it could be a more dramatic change. Either way, an extra $35 billion in debt changes investment strategies for sure.

Yes they are taking on extra debt to make this deal but you have got to assume like any business you buy that the company you are buying is able to support the debit you are bringing on. So if they are expecting to increase debit service any good CFO would make sure that the assets they are buying can and will generate enough cash flow to pay for the debit. If you are buying based on the future earning then you dont pay as high a premium for the assets.

My fear is that is why the originally offered stock only as they did not cover the profit stream and current debit the company had.