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

[Stripes]

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.

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.

 

[seascape]

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?

 

[Monorail_Red_77]

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

Spheros are tough little toys. I don't recommend it but, my sons Sphero was run over by a car and it is still working. Crazy! It's a little scuffed up though.

 

[Kingtut]

...it’s a Burgh thing, baby

Where else can you get kielbasa AND pierogies on the same sandwich? When do you think we will see that on a Disney QS menu?

 

[Sirwalterraleigh]

Where else can you get kielbasa AND pierogies on the same sandwich? When do you think we will see that on a Disney QS menu?

When they open “yinzerland” at animal kingdom...

 

[Rodan75]

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?

I can't believe most of them have, nearly all of the postings treated SKY with the same mentality as a US based asset. Especially with Greenfield, he definitely comes across as a disconnected pundit vs an analyst and investor now.

Disney recently increased the Ebitda guidance for SKY is that actually a maneuver to further increase the % of Value that is being placed on SKY in the 21CF acquisition and thereby increasing the Comcast bid requirement for the remaining 61%? I don't really see any other benefit Disney had from making that change to guidance.

 

[Rodan75]

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

I knew they had done a lot of licensed products with Disney, but the chart made it look like it was at least majority owned by Disney, but investment makes sense.

 

[MisterPenguin]

I knew they had done a lot of licensed products with Disney, but the chart made it look like it was at least majority owned by Disney, but investment makes sense.

A small investment from Disney could mean majority stakes in a small company. I'm sure some of our business techies can find some sort of ownership records.

They really, really wanted a working BB-8. The toys were a bit a gravy.

 

[seascape]

I can't believe most of them have, nearly all of the postings treated SKY with the same mentality as a US based asset. Especially with Greenfield, he definitely comes across as a disconnected pundit vs an analyst and investor now.

Disney recently increased the Ebitda guidance for SKY is that actually a maneuver to further increase the % of Value that is being placed on SKY in the 21CF acquisition and thereby increasing the Comcast bid requirement for the remaining 61%? I don't really see any other benefit Disney had from making that change to guidance.

Based on the market today it looks like most investors are ready to give up on Comcast making another bid for Fox. Fox is down to 48.48 forms it's high of 50.14. However Comcast is also down a few cents while Disney is up. To me that may indicate at the same time investors believe Comcast is still going to increase their bid for Sky.

 

[Indy_UK]

Disney should sell their 39% of SKY and just push harder on the streaming services over here. Like I've said many times before, people want and are cord cutting so why buy into a Satelite TV company now?

Comcast and SKY will make a better match, their both scummy

Who has the more power, the TV provider companies or the studios making the content? I wonder if Comcast would charge Disney a pretty penny to remain on SKY

 

[Sirwalterraleigh]

Disney should sell their 39% of SKY and just push harder on the streaming services over here. Like I've said many times before, people want and are cord cutting so why buy into a Satelite TV company now?

Comcast and SKY will make a better match, their both scummy

Who has the more power, the TV provider companies or the studios making the content? I wonder if Comcast would charge Disney a pretty penny to remain on SKY

Who in this secanrio isn’t scummy? Have you looked into the history of espn??

...quite a den of scum and villainy

 

[Indy_UK]

Oh I've read similar about ESPN. I was just referring in terms of customer service. SKY are very aggressive in their sales tactics and their call centre staff become quite rude and hostile if you even mention that you want to leave or reduce your monthly costs

 

[pdude81]

Oh I've read similar about ESPN. I was just referring in terms of customer service. SKY are very aggressive in their sales tactics and their call centre staff become quite rude and hostile if you even mention that you want to leave or reduce your monthly costs

A Comcast by any other name sounds equally frustrating

 

[LieutLaww]

I wonder if Comcast would charge Disney a pretty penny to remain on SKY

No as Disney has a contract with Sky to be on their service for a set amount of time and at a set price, Comcast cant come along and just jack up the price because they now own it.

 

[Indy_UK]

I remember SKY almost lost the 12 channels under the Discovery Network last year because they weren't willing to pay a fair price for them. Discovery wanted about £1 billion and they agreed on a figure near to that.

 

[Rodan75]

Disney should sell their 39% of SKY and just push harder on the streaming services over here. Like I've said many times before, people want and are cord cutting so why buy into a Satelite TV company now?

Comcast and SKY will make a better match, their both scummy

Who has the more power, the TV provider companies or the studios making the content? I wonder if Comcast would charge Disney a pretty penny to remain on SKY

They really wouldn't be allowed to charge Disney more than market rates to carry content.

Overall I agree that Disney doesn't need a Satellite company right now. But they are getting one with Star India, so both Sky and Star would make it a pretty large linear distribution company overnight. And similar to what AT&T is doing with DirecTV, making the distribution method less important than the brand itself (DirecTV NOW and DirecTV are marketed together). There is a lot of margin in linear distribution, even if that gross revenue will shrink over the next 10 years.

 

[Sirwalterraleigh]

Oh I've read similar about ESPN. I was just referring in terms of customer service. SKY are very aggressive in their sales tactics and their call centre staff become quite rude and hostile if you even mention that you want to leave or reduce your monthly costs

About 5 years ago Comcast did the same thing...so I left Comcast

 

[seascape]

They really wouldn't be allowed to charge Disney more than market rates to carry content.

Overall I agree that Disney doesn't need a Satellite company right now. But they are getting one with Star India, so both Sky and Star would make it a pretty large linear distribution company overnight. And similar to what AT&T is doing with DirecTV, making the distribution method less important than the brand itself (DirecTV NOW and DirecTV are marketed together). There is a lot of margin in linear distribution, even if that gross revenue will shrink over the next 10 years.

Star Idia is a great purchase. Disney can use that assest to increase total box office in India for Fox movies, Star India movies and of course all Disney movies. Plus it would be an unbelievable assest when they finally build a themeparks in the 2nd most populated country in the world. Disney Parks and resorts needs to grow and what better place is there than Asia? They have the population and growing economy to support at minimum 5 more major destination resorts. Disney should also build a regional subsidiary to take full advantage of as ll their IP and maximize their total profits. Now is the time to massively expand and increase all their profits.

Look at what Universal has accomplished with minimal expense and leverage the wonderful assests Disney owns with low interest rates. Grow now and even buy SeaWorld and Cedar Fair. Let Comcast buy Six Flags and with no competition get the DC rights. DC rights don't transfer if either Comcast or Disney buy Six Flags but with no other company available WB would let Comcast keep them and infact expand them to all of Universal.

 

[Sirwalterraleigh]

I remember SKY almost lost the 12 channels under the Discovery Network last year because they weren't willing to pay a fair price for them. Discovery wanted about £1 billion and they agreed on a figure near to that.

Comcast, cablevision, Time warner have all pulled similar tactics in the past stateside.

Another dynamic was espn...cough, cough...charging insane fees when they were on top of the world...

The king is dead...however...and his treasury is being emptied.

 

[Sirwalterraleigh]

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 dunno...increased disney broadcast presence would allow them to build client base for two very large, experience themepark complexes they are tired too...

I could see it playing the way they used US cable in the 1980s and 90s to put air into their sails