I'm curious what would you value SPE at? I'm thinking something around 35-40 Billion.
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Could Disney face another hostile takeover attempt?
- Thread starter mharrington
- Start date
I'm curious what would you value SPE at? I'm thinking something around 35-40 Billion.
Disney Irish
Premium Member
The real question is would the Murdoch's have just sold the rights back without Disney buying the whole company. That is debatable as the Murdoch's were looking for a buyer for Fox. And any buyer would have wanted to keep the lucrative Marvel Fox properties. So really while yes Disney could have, doesn't mean Murdoch's would have. At least in my opinion.
the.dreamfinder
Well-Known Member
$1.5 Billion to $2 Billion in easy cash would be hard to turn down. Murdochs became sellers because they couldn’t buy TW and Rupert’s getting on in the years so another acquisition opportunity would be unlikely and Bob wanted to make one last big deal.
From what Ive read in the trades no. It was all or nothing with the Murdochs. During the very early stages of the sale they did briefly consider splitting up the company and sell off bits and pieces to the highest bidder but I think they realized that selling it all to the highest bidder was best for the shareholders and overall value. Also you have to consider Disneys position as well. It wasn't just the marvel rights they were after they wanted Avatar and the Simpsons and Fox's library of content for Disney plus.
I read that one analyst claimed that Disney's stock now was almost 30% undervalued.
Disney Irish
Premium Member
Being undervalued is a good thing. Being overvalued is a bad thing. So what the analyst, which I assume came from a Barron's article yesterday, is saying is that they believe Disney stock will go UP.
Slpy3270
Well-Known Member
There's a genuine mentality in media journalism that telecoms and Silicon Valley will save the media. It started when Comcast bought NBCUni and got worse when Bezos took over WaPost and AT&T merged with TimeWarner.
Disney Irish
Premium Member
Not saying you're think it'll happen. But who's Disney going to buy from the telecom world? CenturyLink? Frontier? Not many telecoms left worth anything. And not many telecoms with deep enough pockets to buy Disney. Plus Disney tried to get into the telecom market once before, didn't go very well.
And I still don't believe Apple, Google, or any other tech company is going to buy Disney at this point. If they were going to do it, they should have done it when the stock was in the $80s. Nope, while I believe it'll be a rough couple of quarters, Disney will make it out of all this relatively unscathed.
Slpy3270
Well-Known Member
That of course assumes that the US theme parks don't reopen disastrously and Mulan and Black Widow don't lose $300 million each.
Disney Irish
Premium Member
As I said a rough couple of quarters ahead. But that, in my opinion, is not enough to take down one of the largest media conglomerates on the planet.
Talk to me in a year, late 2021, and we'll see where Disney is at.
Being undervalued is what got Disney in trouble back in 1984.
Disney Irish
Premium Member
That is an over simplification of the events from 1984. Also this ain't 1984, and the stock price is way more expensive than back then. Disney is also a completely different company, being a media conglomerate instead of just a movie studio with some theme parks.
So no, being undervalued in this case is not the same as in 1984.
That's John Carter territory. Literally that much.
The next biggest theatrical deficit in modern times is Tomorrowland at -$165M.
It'll be more of a loss if theaters can't open and eventually they have to go to streaming. Otherwise, only a deep recession would see those as major money-losers.
Slpy3270
Well-Known Member
Beginning to think that whatever gain Disney may get from reopening Disney World could be dashed if ESPN has no college sports to air for the remainder of the year (NBA/MLS seasons don't run through December; and it's not clear if NBA will even have a 2020-21 season). Think about the billions in revenue that could be lost (and Disney paying for games that won't be played and not getting that money back).
And no, Disney isn't getting rid of ESPN anytime soon. They're their second-biggest cash cow behind the parks.
And no, Disney isn't getting rid of ESPN anytime soon. They're their second-biggest cash cow behind the parks.
While this isn't necessarily about a hostile takeover per se, do you believe that pretty much all of Disney's future projects, particularly at the parks, are in jeopardy? @WDW Pro pretty much says they are: https://forums.wdwmagic.com/threads/cash-strapped-disney.966222/.
Disney Irish
Premium Member
Please go discuss that topic in that thread.
The problem is I am not entirely sure how believable WDW Pro is.
Twilight_Roxas
Well-Known Member
I don’t think Disney should be with Centurylink. Their service is terrible, and their WiFi always go down for no reason.
Disney Irish
Premium Member
I don’t know their actual service, but all of them have issues, no service is perfect.