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

Rodan75

Rodan75

Well-Known Member
mikejs78 said:
Wild west of the web, yes. Mobile, AI/ML, etc are still nascient technologies where startups are thriving.
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lol. Fair, but most of the big companies are already playing heavily in those spaces. There are going to be far fewer breakouts in this sector of technology now.

And Wild West of the AI/ML and Mobile doesn't sound as fun. lol. I do consider much of what is happening in those spaces to be branches off the original Web explosion, but I understand that could be hotly debated.
 
Rodan75

Rodan75

Well-Known Member
CaptainAmerica said:
Of course the tech can't suck, but it doesn't need to be groundbreaking either. They can let someone else be the innovator and then ride on that tech as a service. Disney isn't buying Fox for tech, they're buying Fox for content.


I don't buy the cash grabs. I did Not-So-Scary one time and it was the biggest waste of money ever.
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But that is the thing, BAMTech has already designed widely used interfaces for big content. So we know that works. Disney already had a solid interface in Movies Anywhere service, understands Hulu and, I have no idea what DisneyLife looks like, but they are getting experience every day.

So to your point...I think the original discussion from Greenfield is BS and ignores where Disney is doing already right now.
 
mikejs78

mikejs78

Premium Member
Rodan75 said:
lol. Fair, but most of the big companies are already playing heavily in those spaces. There are going to be far fewer breakouts in this sector of technology now.

And Wild West of the AI/ML and Mobile doesn't sound as fun. lol. I do consider much of what is happening in those spaces to be branches off the original Web explosion, but I understand that could be hotly debated.
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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.
 
M

mab7689

Active Member
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.
 
Rodan75

Rodan75

Well-Known Member
mab7689 said:
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.
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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?
 
S

seascape

Well-Known Member
Rodan75 said:
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?
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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

Rodan75

Well-Known Member
seascape said:
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.
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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

Stripes

Premium Member
Rodan75 said:
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?
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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

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

Rodan75

Well-Known Member
DoubleJ21 said:
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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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

the.dreamfinder

Well-Known Member
Rodan75 said:
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.
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How does this deal still make sense for Disney if they don’t get Sky?
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
Disney + Fox Graphic (if the deal goes through, and taking out Fox sports and the now defunct DisneyToon)...

every-company-disney-owns-13_pageversion.jpg
 

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