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News Disney and Fox come to terms -- announcement soon; huge IP acquisition
- Thread starter ohioguy
- Start date
Aw come it. It would be great! Bob, are you LISTENING???
mikejs78
Well-Known Member
Everything in computing stands on what came before, but mobile is a new beast in that it brings the power of computers everywhere. That's why there's been an explosion of new disruptive businesses that utilize this tech (e.g. Uber)... AI/ML is likely the next one - too early to tell though.
https://www.gov.uk/government/news/...d-merger-between-sky-plc-21st-century-fox-inc
An update from the UK. On June 19th our Culture and Media Secretary (the government minister with the jurisdiction on Fox's proposed purchase of the remaining 61% of Sky) made the ruling that he would allow it on the condition Sky News was divested to Disney to address plurality concerns.
This would then be subject to a 15 day public consultation window. That ended at 5pm UK time today. Hopefully tomorrow or in the coming days we'll get further developments on the Fox/Disney overtures for Sky. I'll post further updates in here.
An update from the UK. On June 19th our Culture and Media Secretary (the government minister with the jurisdiction on Fox's proposed purchase of the remaining 61% of Sky) made the ruling that he would allow it on the condition Sky News was divested to Disney to address plurality concerns.
This would then be subject to a 15 day public consultation window. That ended at 5pm UK time today. Hopefully tomorrow or in the coming days we'll get further developments on the Fox/Disney overtures for Sky. I'll post further updates in here.
Rodan75
Well-Known Member
This whole aspect of the deal is a little confusing, trying to align UK rules with US rules for an acquisition in the midst of competitive bids.
If I'm understanding this correct, it looks like the Takeover panel will likely increase the price to be paid for SKY by 36%, since Disney is valuing the 39% Fox owns at that higher rate. So the rest of the stockholders get the better price as well.
Does that mean that all Fox/Disney has to do is agree to match that Price and then the shareholders will get to vote on who gets to buy the other 61% of SKY? Unless Comcast raises the price again? And that would start the whole UK regulatory cycle again?
Yes. The UK will set a price the Disney is required to pay. Disney also legally is required to offer to buy the rest of Sky. It is not optional. Comcast would have to same legal requirement to buy at the price the UK board sets based upon the price they pay for Fox. Once the Board sets the price which is higher than Comcast's bid Comcast will have to decide what to do. They cant increase their offer for Fox right now until the board sets the new Disney price because if they did, they would have no idea what they will have to pay for Sky. For example a 90 billion bid for Fox could make the 61% cost as much as 40 billion. But they may be able to get 100% of Sky for less if they walk away from Fox letting Disney get that and then bid 35 billion for Sky.
Rodan75
Well-Known Member
Gotcha. So that is essentially why Fox never countered for SKY, they had to wait for this process to play out.
Doesn’t this also mean that the enterprise value of Disney’s current offer will go up significantly?
Stripes
Premium Member
Yep. It's also a significant obstacle for Comcast, because as the value of the Fox transaction goes up, so does Sky. Therefore, it doesn't make much strategic sense for them to bid higher for Fox if they only expect to get Sky.
For Comcast, dropping Fox and going after Sky makes the most strategic sense and would show a great deal of discipline on Roberts part.
Stripes
Premium Member
One thing is abundantly clear, if Comcast had a plan they would've already made their move. In my view, the only way they move forward with another offer is if they find a partner. PE doesn't like overpaying for assets whatsoever, and the assets Comcast wants to offload are already running smoothly. Therefore, a PE firm would be highly unlikely to make a profit. And, as we've already discussed, other tech and media companies aren't interested. Therefore, I'm skeptical they'll ever find a partner, but if they do, that is likely what is taking so long for them to respond.
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Rodan75
Well-Known Member
I can’t imagine any partner would want to strengthen Comcast. The best partner would have been Disney from the beginning.
Not many of the companies who have the resources to assist would want to have to deal with a stronger Comcast charging for web access.
the.dreamfinder
Well-Known Member
How does this deal still make sense for Disney if they don’t get Sky?
Disney + Fox Graphic (if the deal goes through, and taking out Fox sports and the now defunct DisneyToon)...
Twilight_Roxas
Well-Known Member
Impressive.
Pixieish
Well-Known Member
Disney + Fox Graphic (if the deal goes through, and taking out Fox sports and the now defunct DisneyToon)...
Rodan75
Well-Known Member
I don’t think SKY is the primary driver for DIS, where it is for Comcast.
Rodan75
Well-Known Member
Disney + Fox Graphic (if the deal goes through, and taking out Fox sports and the now defunct DisneyToon)...
They own Sphero?
They made BB-8 for Disney. Disney invested "a small amount" into their company. Most of their consumer products are Disney IPs.
https://en.wikipedia.org/wiki/Sphero
- In the Parks
- No
Disney wants SKY just as much as Comcast does as it gives them a big presence into Europe and especially the UK market, Comcast and Disney currently only have a limited presence, but with the acquisition of SKY it opens up a whole new revenue stream essentially.
Stripes
Premium Member
I disagree that Disney wants Sky just as much as Comcast. I think they want it, but would be willing to let it go. Frankly, Disney can't add much value to Sky. I was also reading that Sky's sports rights expire soon, which leaves the door open for another company to steal one of the company's biggest jewels. And in Disney's eyes, probably the most important.
Comcast can contribute much, much more, particularly on the TV side of things. For curiosity's sake, I watched a few videos of the new Sky Q system, and I thought Comcast's X1 was superior in just about every way. Comcast can really add a lot of value to Sky that Disney simply can't.
I wonder if all the market analysts took the strange UK rules into account when they thought about Comcasts bids? In any case if Comcast's real goal was to windup with Sky, all they accomplished was lowering their chances of owning it because their offered price is now too low. So do they pay more and end up subsidizing Disney's purchase of Fox?