Rodan75
Well-Known Member
Oh yeah. I think to a certain extent here Roberts won in making Disney pay a lot more. Disney has the chance to be a long term winner, but time will tell.
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News Disney and Fox come to terms -- announcement soon; huge IP acquisition
- Thread starter ohioguy
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Oh yeah. I think to a certain extent here Roberts won in making Disney pay a lot more. Disney has the chance to be a long term winner, but time will tell.
Rodan75
Well-Known Member
Do we know how many customers DisneyLife has worldwide?
VJ
Well-Known Member
I don't think that's known, but you can read a bit more about DisneyLife below. The fact that a US launch is mentioned is what makes me think this is what the US service will end up being, but they could also go in a different direction so there's really no way to tell.
https://www.techadvisor.co.uk/new-product/internet/what-is-disneylife-3628961/
Rodan75
Well-Known Member
Don’t forget no one wanted SKY besides Murdoch. They have a lot of legacy systems issues and primarily rely on Satellite distribution. There is little broadband upside here. Comcast gets European distribution. But look at DirecTV’s results.
the.dreamfinder
Well-Known Member
I wonder if they’d give up the Olympics rights?
bartholomr4
Well-Known Member
Totally Agree.... The $4.48 Billion earned today will soften the blow of any payout whenever it occurs....
bartholomr4
Well-Known Member
Doubt it..... Too big a deal for NBC Sports (what else would they have other than Sunday Night NFL and NHL?).
AnotherDayAnotherDollar
Well-Known Member
I think both companies are probably happy with the outcome today.
On paper, this sets up a possible asset swap.
Comcast gets:
- 39% of Sky (valued at 15.1B given 17.28 bid)
- A couple of RSNs that Comcast has shown interest in (each RSN is close to at least 1B in value, some significantly higher like YES)
Disney gets:
- 30% of Hulu (valued at 2.4B as per the latest Disney SEC filings regarding the Fox acquisition)
- Outstanding Marvel rights (Namor, Hulk, Theme park rights in Orlando, usage of Marvel name in theme parks)
- Distribution to Disney movies in EU that Sky currently has the rights to
- Cash
The main problem here is what is the cash amount that both parties would agree to.
I honestly don't think Disney values theme park rights in Orlando, Marvel name for theme parks, and Namor + Hulk movie rights all that much. It's a nice cherry on top and that's it. Not sure how much they value the distribution rights that Sky has for Disney movies and when those expire, but I'm guessing it's not that valuable either. The one thing that they'd value here is Hulu 30%.
This also means Disney will have an uphill battle in Europe as they'll have to enter their DTC market there with Hulu, DisneyPlay, and ESPN+. None of those exist or a known there. It'll take a lot of capital and work to gain a foothold there.
One final note on theme park in Orlando. If both sides do agree to a deal the most likely scenario will be an amendment to the contract with an expiration date and removal of exclusivity. Marvel land at IoA won't close overnight. They'll probably have the contract expire in 10-15 years and during that time both parties can use the Marvel characters (Disney would use the MCU ones whereas Universal would keep with what they have). Universal would probably want to get out sooner though.
On paper, this sets up a possible asset swap.
Comcast gets:
- 39% of Sky (valued at 15.1B given 17.28 bid)
- A couple of RSNs that Comcast has shown interest in (each RSN is close to at least 1B in value, some significantly higher like YES)
Disney gets:
- 30% of Hulu (valued at 2.4B as per the latest Disney SEC filings regarding the Fox acquisition)
- Outstanding Marvel rights (Namor, Hulk, Theme park rights in Orlando, usage of Marvel name in theme parks)
- Distribution to Disney movies in EU that Sky currently has the rights to
- Cash
The main problem here is what is the cash amount that both parties would agree to.
I honestly don't think Disney values theme park rights in Orlando, Marvel name for theme parks, and Namor + Hulk movie rights all that much. It's a nice cherry on top and that's it. Not sure how much they value the distribution rights that Sky has for Disney movies and when those expire, but I'm guessing it's not that valuable either. The one thing that they'd value here is Hulu 30%.
This also means Disney will have an uphill battle in Europe as they'll have to enter their DTC market there with Hulu, DisneyPlay, and ESPN+. None of those exist or a known there. It'll take a lot of capital and work to gain a foothold there.
One final note on theme park in Orlando. If both sides do agree to a deal the most likely scenario will be an amendment to the contract with an expiration date and removal of exclusivity. Marvel land at IoA won't close overnight. They'll probably have the contract expire in 10-15 years and during that time both parties can use the Marvel characters (Disney would use the MCU ones whereas Universal would keep with what they have). Universal would probably want to get out sooner though.
bartholomr4
Well-Known Member
From Marketscreener Blog: "The bidding went something like this.... Disney/Fox round one, bid 14.76, Comcast Round two bid = 15.65, Final Round (Blind), Disney Bids 15.67, Comcast Bids 17.29".
bartholomr4
Well-Known Member
I agree with your summary, but think they will be negotiated individually (as suggested by Rodan75), once 21CF and Sky close. Think Disney will retain the 39% of Sky until 21CF closes, and Sky will close with Comecast prior to Halloween
AnotherDayAnotherDollar
Well-Known Member
I'm not sure how these could be done individually to be honest.
AnotherDayAnotherDollar
Well-Known Member
You are not wrong and we have said this in this thread plenty of times.
Quinnmac000
Well-Known Member
Yea I'm going to pose something else.
Comcast gets:
20% of Sky
Fox Animation
Certain IP/library transfer to Comcast
NBC products get adequate promotion on Hulu
Disney Gets:
10% of Hulu
Disney streaming service/ESPN/Hulu included with Xfinity and Sky boxes at no cost to Comcast/SKY consumers for a year and all cost to Comcast
Lucrative licensing deal for Distribution of Disney/Fox properties on Sky
Cash
Comcast in recent statements have stated they don't care whose property you are watching as long as you watch it on our systems which is why they have included Netflix etc on those boxes while running certain deals that cost Comcast and Disney will want to leverage their product to the largest amount of consumers as possible. That will be more valuable in the long run than full ownership of Hulu/Sky.
Theme Park deals aren't going to happen. That is the last freaking thing on anyone's mind and is so minor in this entire thing that they wouldn't waste an leverage on that.
bartholomr4
Well-Known Member
Hulu will get negotiated Separately (I suspect Comcast could invite AT&T into the bid for their 30%).
Disney / Fox will want to close their deal before any money exchanges for the 39%. This includes guaranteed Access for Disney Over the Top Streaming in Europe and Marvel RIghts etc...
Disney can’t sell the Fox Sports Assets until the 21CF Merger closes. There are other 3rd parties involved in each of these (NBA, NHL owners etc)......
bartholomr4
Well-Known Member
These guys don’t like each other.... I don’t think they want to maintain minority ownership and ongoing payment streams based on ownership...
bartholomr4
Well-Known Member
From the Wall Street Journal Online: “In the end, Comcast paid 10% more to what Disney and Fox were willing to pay. That translates to about $3.6 billion for all of Sky shares—a large premium that Comcast may not have needed to pay had the end game not been a blind auction. “
Stripes
Premium Member
I'm gonna run some numbers to see how both companies fared in this battle, but one thing is certain: Disney was going to win this battle no matter what the outcome. If they got Sky, they got Sky and all it holds, if they didn't they gave a finger to Comcast while also increasing the value of their Sky shares should they choose to sell them to Comcast.
For Disney this was a win-win ballgame, and they played their A game.
For Disney this was a win-win ballgame, and they played their A game.