Any chance of Comcast buying out Blackstone's ownership stake in Sea World

[PeterAlt]

Just a thought... Since Comcast bought out Blaskstone's ownership in Universal Studios Orlando, considering that Blackstone's said they want to get out of the theme park business, could a Comcast buyout of Blackstone's Sea World interest possibly be in the cards, since Anhauser Busch is no longer an owner of this company? They may want to divest Busch Gardens, so that the focus is on Sea World. Such a move could enable Comcast to pull Sea World under the USO umbrella, which also includes Wet and Wild. They would also have to buy or trade all the public shares of Sea World that was released in the recent IPO.

What do you think? Good move or no?

 

[lazyboy97o]

SeaWorld Parks & Entertainment is its own legal entity that is now a publicly traded company. If Blackstone was eager to get out of the theme park business they would not have retained a majority stake. They would also be moving more quickly on the long planned spin off of Merlin Entertainments, owners of Legoland, Madam Tussaud's, SeaLife Aquarium and Eye ferris wheel chains.

 

[PeterAlt]

SeaWorld Parks & Entertainment is its own legal entity that is now a publicly traded company. If Blackstone was eager to get out of the theme park business they would not have retained a majority stake. They would also be moving more quickly on the long planned spin off of Merlin Entertainments, owners of Legoland, Madam Tussaud's, SeaLife Aquarium and Eye ferris wheel chains.

Let's just assume they want to get out, as I read this in the articles about their sale of their Uni stake to Comcast (but you could be right). Let's focus on Comcast. Is this something they would be interested in doing? Maybe they are putting this together a little at a time so that it doesn't look that bad on their balance sheets?

 

[lazyboy97o]

The Blackstone Group was willing to just sell off SeaWorld Parks & Entertainment. Comcast could have acted then. There is no benefit to Comcast buying SeaWorld. They're not an investment firm or overly diversified conglomerate.

 

[JT3000]

If they wanted to get out of the theme park business, they wouldn't have bought SeaWorld to begin with. It's a nonsensical notion. I find it hard to believe anyone at Blackstone woke up the morning after the purchase and thought, "Why did I just do that?" They can't be THAT terrible at business.

With that said, Blackstone is an equity firm, merely looking to make a profit on its properties. They have no passion for this industry, as they've already proven at Universal. It's only a matter of time before they pull the trigger again. However, now isn't the time, and when that time does come, I can almost guarantee Universal won't be involved.

 

[PeterAlt]

The Blackstone Group was willing to just sell off SeaWorld Parks & Entertainment. Comcast could have acted then. There is no benefit to Comcast buying SeaWorld. They're not an investment firm or overly diversified conglomerate.

As I said, it would look better on their balance sheet, if they buy it piece meal. There's no need for Sea World right away, but the was a need for USO right away. It would have been like Disney buying Marvel, LucasFilm, and Pixar in the same fiscal year. That would have been $4.3 plus $4 billion plus $7 billion, a $15.3 billion capital expense in a single fiscal year, while each of these separately in multiple fiscal years looks much better. If they owned Sea World, the benefits would be movie tie-ins or tie-in to other Comcast properties, Universal Creative designed attractions at Sea World, true profits (instead of shared) on park hopper tickets, people mover or other transit system to tie the properties (including Wet and Wild and the hotels together), tie-ins to the on-site hotels, CityWalk, and Wet and Wild.

It's such a logical move on Comcast's part that I'm thinking of buying Sea World stock on the belief that these will either be purchased one day by Comcast or traded for Comcast stock or both.

 

[PeterAlt]

If they wanted to get out of the theme park business, they wouldn't have bought SeaWorld to begin with. It's a nonsensical notion. I find it hard to believe anyone at Blackstone woke up the morning after the purchase and thought, "Why did I just do that?" They can't be THAT terrible at business.

With that said, Blackstone is an equity firm, merely looking to make a profit on its properties. They have no passion for this industry, as they've already proven at Universal. It's only a matter of time before they pull the trigger again. However, now isn't the time, and when that time does come, I can almost guarantee Universal won't be involved.

I wouldn't be too sure. Uni did make a bid for Sea World in the past. So did Disney. But we're not talking about Uni any more. We're talking about its new owner, Comcast. Comcast and Disney may be in the bidding competition once again.

 

[PeterAlt]

If they wanted to get out of the theme park business, they wouldn't have bought SeaWorld to begin with. It's a nonsensical notion. I find it hard to believe anyone at Blackstone woke up the morning after the purchase and thought, "Why did I just do that?" They can't be THAT terrible at business.

With that said, Blackstone is an equity firm, merely looking to make a profit on its properties. They have no passion for this industry, as they've already proven at Universal. It's only a matter of time before they pull the trigger again. However, now isn't the time, and when that time does come, I can almost guarantee Universal won't be involved.

Blackstone may have bought Sea World on the belief that they will turn a profit on it by selling it one day to Comcast. They may have gotten that impression during private conversations the Comcast during the USO deal. Their IPO is another indicator that they this may be a short term investment.

 

[lazyboy97o]

As I said, it would look better on their balance sheet, if they buy it piece meal. There's no need for Sea World right away, but the was a need for USO right away. It would have been like Disney buying Marvel, LucasFilm, and Pixar in the same fiscal year. That would have been $4.3 plus $4 billion plus $7 billion, a $15.3 billion capital expense in a single fiscal year, while each of these separately in multiple fiscal years looks much better. If they owned Sea World, the benefits would be movie tie-ins or tie-in to other Comcast properties, Universal Creative designed attractions at Sea World, true profits (instead of shared) on park hopper tickets, people mover or other transit system to tie the properties (including Wet and Wild and the hotels together), tie-ins to the on-site hotels, CityWalk, and Wet and Wild.

It's such a logical move on Comcast's part that I'm thinking of buying Sea World stock on the belief that these will either be purchased one day by Comcast or traded for Comcast stock or both.

There is absolutely nothing logical about your premise. You're suggesting Comcast slowly buy SeaWorld so that they can move in and undermine the chain's brand and identity. Just building a third park would be a lot easier.

Blackstone may have bought Sea World on the belief that they will turn a profit on it by selling it one day to Comcast. They may have gotten that impression during private conversations the Comcast during the USO deal. Their IPO is another indicator that they this may be a short term investment.

Blackstone is an investment firm. They never hold on to anything forever.

 

[PeterAlt]

There is absolutely nothing logical about your premise. You're suggesting Comcast slowly buy SeaWorld so that they can move in and undermine the chain's brand and identity. Just building a third park would be a lot easier.


Blackstone is an investment firm. They never hold on to anything forever.

There's no land left for a third park. They sold off the land they once bought. They would keep the Sea World brand and expand on it, possibly introducing Uni IP to other Sea World parks. For example, they could use Sea World San Diego to launch S. Cali's IOA park.

Besides, creating a new third park would hurt all third existing I-Drive area parks.

 

[OFTeric]

I am sorry, and I really don't mean to sound rude, but @PeterAlt your logic is theme park fanatic delusional.

First thing: Blackstone makes money. It is what they do. They but an asset, hold it, improve it, earn profits, sell it for a profit.

Second thing: Their relationship to UO was much different than their other theme park holdings because they only owned 50% of it, instead of a majority or the entire entity like their other holdings. They had very little input into the operations at UOR which caused major tensions at times between Universal and Blackstone

Third thing: What you are suggesting is that Comcast initiates a long term "hostile takeover" which is insane, in this day and age, and in the current market NO investor at Comcast would have any sort of patience for that kind of nonsense.

Fourth thing: There was ample time to buy SeaWorld pre-IPO. If anyone was going to buy SeaWorld, it would have been then. Post IPO you run into variables on the open market, and unless SeaWorld's stock tanks, I cannot see another company taking over SeaWorld in the immediate future.

It is fun to dream... trust me I would love it, if Universal purchased SeaWorld, and married the resorts together in an amazing union... but alas... it is not so.

 

[PeterAlt]

I am sorry, and I really don't mean to sound rude, but @PeterAlt your logic is theme park fanatic delusional.

First thing: Blackstone makes money. It is what they do. They but an asset, hold it, improve it, earn profits, sell it for a profit.

Second thing: Their relationship to UO was much different than their other theme park holdings because they only owned 50% of it, instead of a majority or the entire entity like their other holdings. They had very little input into the operations at UOR which caused major tensions at times between Universal and Blackstone

Third thing: What you are suggesting is that Comcast initiates a long term "hostile takeover" which is insane, in this day and age, and in the current market NO investor at Comcast would have any sort of patience for that kind of nonsense.

Fourth thing: There was ample time to buy SeaWorld pre-IPO. If anyone was going to buy SeaWorld, it would have been then. Post IPO you run into variables on the open market, and unless SeaWorld's stock tanks, I cannot see another company taking over SeaWorld in the immediate future.

It is fun to dream... trust me I would love it, if Universal purchased SeaWorld, and married the resorts together in an amazing union... but alas... it is not so.

I don't doubt the sincerity of your advise. I don't think you understand what I am saying. I don't think Comcast will enter a hostile takeover. I think there already may be quiet understanding between the two companies and that the specifics are far from finalized. They may not even agree to the specifics, in which case they'll negotiate indefinitely or until there's no deal. If it's the later, we'll never hear about it, since these talks are done privately. In fact, it is in Comcast's interest to keep the general public thinking that they are not interested, especially now that Sea World is publicly traded - in order to keep it at a price that's acceptable. If a deal were to happen, Comcast would first buy out Blackstone's shares. Then, they would make an off to either trade Comcast shares for the public Sea World shares (like Disney did with Pixar shares, except Pixar shares were privately held), they could offer cash for the public shares (like Disney did with Marvel), or they could offer a combination of shares and cash (like Disney did with ABC). In any of the above situations, there would then be a stockholder referendum to approve the transition. Or Comcast just may decide to keep those remaining Sea World share public, since Blackstone's share are already controlling interest. Knowing Comcast, though, I believe they would make an offer.

EDIT - To fully understand, research how much Comcast offered Disney on its hostile takeover bid. I don't think they've spent all that yet on Universal and Blackstone's Uni share yet.

 

[lazyboy97o]

Comcast was not interested in The Walt Disney Company because they owned Walt Disney World or any other theme parks. They wanted ABC, ESPN, and the other television/film assets.

And you're still describing a hostile takeover.

 

[PeterAlt]

Comcast was not interested in The Walt Disney Company because they owned Walt Disney World or any other theme parks. They wanted ABC, ESPN, and the other television/film assets.

And you're still describing a hostile takeover.

That's what they said publicly. I had this discussion here before, but I said in that discussion that I read an interview with Brian Roberts when he was first made CEO and in that interview he was clearly interested in the parks. As proof of this, just look at what he's put into USO on top of the Uni acquisition - the buyout of Blackstone's shares and the $1.5 billion announced investment in new attractions and updates, in addition to the new hotel.

I'm really starting to regret that Disney didn't accept the offer now. The situation would be reverse.

 

[lazyboy97o]

That's what they said publicly. I had this discussion here before, but I said in that discussion that I read an interview with Brian Roberts when he was first made CEO and in that interview he was clearly interested in the parks. As proof of this, just look at what he's put into USO on top of the Uni acquisition - the buyout of Blackstone's shares and the $1.5 billion announced investment in new attractions and updates, in addition to the new hotel.

I'm really starting to regret that Disney didn't accept the offer now. The situation would be reverse.

Do you know what would have happened if they didn't buy out Blackstone?

 

[PeterAlt]

Do you know what would have happened if they didn't buy out Blackstone?

What would have happened?

 

[lazyboy97o]

What would have happened?

100% of Universal Orlando Resort would have been put on the market for somebody else to buy.

 

[PeterAlt]

100% of Universal Orlando Resort would have been put on the market for somebody else to buy.

So, it was either really commit to the parks or get rid of them. Partial commitment was not an option. Since we know what the decision was, I take that as a genuine interest in the parks.

 

[lazyboy97o]

So, it was either really commit to the parks or get rid of them. Partial commitment was not an option. Since we know what the decision was, I take that as a genuine interest in the parks.

But it is not evidence of an a desire to rapidly expand their holdings through secret acquisitions of other properties.

 

[PeterAlt]

But it is not evidence of an a desire to rapidly expand their holdings through secret acquisitions of other properties.

I didn't say this. To me, it's more of a long term interest, which explains why they didn't grab Sea World right away when they were already talking to Blackstone. USO was easier to close and more urgent.