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

[Rodan75]

So Fox is going to go for about the same price as TW when all is said and done. That doesn't actually feel as gross as I originally thought.

Now that Disney has updated their offer to Stock or Cash, and they already have an agreement, Disney should win this, they always get the opportunity to counter and match. So Comcast's only move is to keep raising the cash on Disney...to increase Disney's price. But at what point does it become unbelievable for Comcast to go that far, given that they already have far more debt than Disney.

 

[happycamperuni]

I don't think Iger's walking away easily from this. That $72 billion bid feels like Disney's opening shot.

But yeah at $80 billion, we're starting to talk about ridiculous sums of money.

 

[Princess Leia]

I can't find anything about the $80B yet, so I think it's still rumored. I'll keep checking though.

 

[Indy_UK]

Sony pictures and Paramount are worth about $40 billion combined. Why doesn't Disney try and go for them instead

 

[happycamperuni]

Sony pictures and Paramount are worth about $40 billion combined. Why doesn't Disney try and go for them instead

The international assets are the most important aspect of this deal; not the tv/movie studio.

 

[Indy_UK]

I may be wrong but the benefit that Disney would have is that under what they are offering, Fox are still going to pursue and purchase the remaining 61% of SKY themselves which will then just revert 100% of SKY to Disney. Unlike Comcast who needs to buy out the remainder themselves

So while Disneys Bid is currently $71 billion. If Comcast do come back with $80 billion then that's actually $110-$115 billion with Sky included

 

[AnotherDayAnotherDollar]

Winner may have to pay $50/share and we are talking about 90B+ before Fox's debt and everything else. Murdochs are making out like bandits regardless and the winner is overpaying for these assets.

I believe the recent CMCSA spike is because of this:

https://www.bloomberg.com/news/arti...o-near-u-s-approval-on-fox-in-blow-to-comcast

Investors do not want companies to go crazy here and these CEOs have enormous egos.

 

[happycamperuni]

https://www.bloomberg.com/news/arti...rce=twitter&cmpid=socialflow-twitter-business
This is an interesting wrinkle here. Might make it a bit easier for Disney, but after the AT&T-TW decision, I think Murdoch's will just go with the higher offer.

 

[Stripes]

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

Just listening to the conference call Christine McCarthy, Disney's CFO stated: "The increase in leverage doesn't change our investment plans for other parts of our business. We'll continue to invest in areas where we feel we can drive attractive returns on invested capital. Our parks and resorts business and direct-to-consumer initiative are two examples."

What's the truth?!

 

[gmajew]

Disney it not going to back down on this deal if the price raises... They knew this was going to happen and maybe they are just jacking price up to get it higher on comcast.... Or they are going to spin Sky to comcast.... Disney is going to end up with part of the rights to fox....

 

[gmajew]

Just listening to the conference call Christine McCarthy, Disney's CFO stated: "The increase in leverage doesn't change our investment plans for other parts of our business. We'll continue to invest in areas where we feel we can drive attractive returns on invested capital. Our parks and resorts business and direct-to-consumer initiative are two examples."

What's the truth?!

The truth is people jump to conclusion to fast.... if they cut stuff at parks.... theater ... they are doing it anyways...

 

[AnotherDayAnotherDollar]

My post is still waiting to be approved by a moderator, one of the most annoying things on this site.

Some analysts expect the winner to pay $50 a share for Fox.

Winner may have to pay $50/share and we are talking about 90B+ before Fox's debt and everything else. Murdochs are making out like bandits regardless and the winner is overpaying for these assets.

DOJ is also reportedly close to approving Disney's takeover of Fox. Could come in the next 2 weeks.

 

[pdude81]

If one of the stated rationales behind the original choice to go with Disney is that they are offering stock to save on taxes due at closing, then that could still be a factor. They won't necessarily have to go as high as Comcast's all cash offer to win this

 

[Stripes]

I can't find anything about the $80B yet, so I think it's still rumored. I'll keep checking though.

Yeah, it's just Comcast sources leaking plans. Btw, at $41/share the bid isn't valued at $80 billion. It'd be roughly $76.67 billion. Easy way to calculate is to multiply the share bid by 1.87 (number of outstanding Fox shares).

That bid, assuming they go through with it, is more conservative than I would have expected. I do think the first party to break the $80 billion barrier will get the assets.

 

[Indy_UK]

So much money but if Igor doesn't get this deal, he's going to look like a bit of a tit

 

[PizzaPlanet]

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

Yes.

Absolute stupidity. Especially if there is truth to attendance being down.

 

[Crossfire]

If Disney gets the OK from the DOJ in 2 weeks, then Iger has this in the bag.

 

[MileZXO]

I'm pretty sure Fox have said they would be going with Disney anyway, just not officially. it seems to me they are using Comcast to push up the price. Disney spending more is good for Fox and Comcast.

 

[HauntedPirate]

I'm pretty sure Fox have said they would be going with Disney anyway, just not officially. it seems to me they are using Comcast to push up the price. Disney spending more is good for Fox and Comcast Rupert Murdoch.

FTFY

I suspect the same thing, that Murdoch's intention all along has been to sell to Disney regardless of other suitors or their bids.

 

[mikejs78]

I want this thing to be incredibly debt heavy, have Disney win it, be forced to sell capital property including their parks based on the debt load, and have Oriental land company take over WDW.

Is that too much to ask?

Wouldn't happen.. The parks are their cash cow...