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

[mab7689]

Today's the day Sky gets settled. The article about the auction on the Sky News app says that the winner should be revealed around 8pm UK time.

 

[Ripken10]

Today's the day Sky gets settled. The article about the auction on the Sky News app says that the winner should be revealed around 8pm UK time.

Officially we may not know till October 11th. The auction is today, but Sky shareholders do not have to decide till October 11th - if it comes to that. I would say chances are likely we don't find out who "win's" till October. As a Disney "fan" I am not sure which outcome I am hoping for. I see 2 out of 3 outcomes being beneficial to Disney, so it is likely the 3rd option that will result.

 

[mab7689]

Officially we may not know till October 11th. The auction is today, but Sky shareholders do not have to decide till October 11th - if it comes to that. I would say chances are likely we don't find out who "win's" till October. As a Disney "fan" I am not sure which outcome I am hoping for. I see 2 out of 3 outcomes being beneficial to Disney, so it is likely the 3rd option that will result.

I see your point. Perhaps I should have said 'the details of the bids'. It's probably reported as 'winner' by extension on the assumption one will. Obviously if the final bids are matching or close it will go down to whatever shareholders favour.

 

[Indy_UK]

I think we'll find out today

 

[monothingie]

Looks like Comcast is going to get control of Sky having outbid Fox. Major setback for TWDC.

https://www.cnbc.com/2018/09/22/sky-comcast-fox-36-billion-takeover-auction.html

 

[mab7689]

It looks like Comcast have won

 

[monothingie]

Comcast has been quite shrewd so far, forcing the TWDC pay a substantial premium for 21CF over its current value, especially with the loss of Sky.

Comcast gets what it wanted, while Disney pays significantly more for 2/3 of what they wanted.

 

[happycamperuni]

Well now Iger and Roberts have some things to talk about:

Disney controls 39% of Sky (from Fox) as well as 60% of Hulu.

Comcast will control 51+% of Sky and 30% of Hulu.


Could we see some trading soon? Disney's 39% of Sky for 30% of Hulu and cash and maybe some minor rights (like Hulk distribution)?

 

[WDWBigEd]

Just remember Comcast may still not win. They won the bid but Stockholders for Sky still have to vote on which bid to take. I know it seems silly to not take the most money you can, but crazier things have happened.

 

[the.dreamfinder]

 

[the.dreamfinder]

Can we ease up on the cutbacks now?

 

[happycamperuni]

Just remember Comcast may still not win. They won the bid but Stockholders for Sky still have to vote on which bid to take. I know it seems silly to not take the most money you can, but crazier things have happened.

17.28 per share is a crazy number; Comcast will get 55+% of the shares outstanding (out of the overall 61%) probably with an offer that big.

I honestly didn't think anybody would go over 16.50...

In some sense this is best for Disney probably; if Disney had paid $40 billion with an offer over 17.50 pounds per share, that would be an extra $50 billion in total debt along with the $36 billion coming from the Fox purchase.

 

[asianway]

Well now Iger and Roberts have some things to talk about:

Disney controls 39% of Sky (from Fox) as well as 60% of Hulu.

Comcast will control 51+% of Sky and 30% of Hulu.


Could we see some trading soon? Disney's 39% of Sky for 30% of Hulu and cash and maybe some minor rights (like Hulk distribution)?

This sounds like a bad trade someone would call in to suggest on afternoon sports radio

 

[Rodan75]

That Fox bid of 15.67 really feels like Iger baited Roberts to overbid. Everyone was expecting 16 at least. Bidding below the current stock price, implies Fox didn’t want to win.

The narrative that Fox-Disney lost today seems misguided. As others have stated. Iger now gets more money to invest in content, marketing for Disney ‘Play’ and the Parks. And they get another opening to figure out Hulu and other stuff with the decision to sell SKY.

 

[CaptainAmerica]

Comcast has been quite shrewd so far, forcing the TWDC pay a substantial premium for 21CF over its current value, especially with the loss of Sky.

Comcast gets what it wanted, while Disney pays significantly more for 2/3 of what they wanted.

Lolwut? Disney got the piece they wanted and forced Comcast to SEVERELY overpay for the thing Disney didn't want in the first place.

 

[KrazyKat]

I seriously appreciate you all breaking down and explaining a lot about this deal that would otherwise go right over my head.

 

[CaptainAmerica]

That Fox bid of 15.67 really feels like Iger baited Roberts to overbid. Everyone was expecting 16 at least. Bidding below the current stock price, implies Fox didn’t want to win.

The narrative that Fox-Disney lost today seems misguided. As others have stated. Iger now gets more money to invest in content, marketing for Disney ‘Play’ and the Parks. And they get another opening to figure out Hulu and other stuff with the decision to sell SKY.

Minor point, but I think the branding "Disney Play" has since been refuted.

 

[happycamperuni]

That Fox bid of 15.67 really feels like Iger baited Roberts to overbid. Everyone was expecting 16 at least. Bidding below the current stock price, implies Fox didn’t want to win.

The narrative that Fox-Disney lost today seems misguided. As others have stated. Iger now gets more money to invest in content, marketing for Disney ‘Play’ and the Parks. And they get another opening to figure out Hulu and other stuff with the decision to sell SKY.

Yeah Disney has spent the last 10-15 years as a very low-debt, risk-averse company that makes calculated bids (and rarely makes large cash-heavy offers).

Disney bidding below 16 tells me they didn't plan on winning Sky because they knew Comcast would go over 16.

Disney would have gone from $30 billion debt to around $120 billion in debt if they had tried to actually win Sky with a big bid over 17. Iger walked away from this one because he didn't see the value there...

 

[JoeCamel]

That Fox bid of 15.67 really feels like Iger baited Roberts to overbid. Everyone was expecting 16 at least. Bidding below the current stock price, implies Fox didn’t want to win.

The narrative that Fox-Disney lost today seems misguided. As others have stated. Iger now gets more money to invest in content, marketing for Disney ‘Play’ and the Parks. And they get another opening to figure out Hulu and other stuff with the decision to sell SKY.

Or they knew they couldn't win
Without being able to do a cash plus stock deal maybe Bob was told he couldn't take on that much more debt

 

[Rodan75]

Minor point, but I think the branding "Disney Play" has since been refuted.

I know, which us why I called it ‘Play’ vs Play. . It works as a placeholder better than DisneyFlix