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

[bartholomr4]

From DowJones Newswire....

--The New York Yankees, which own 20% of the YES Network, are in talks to buy the 80% held by 21st Century Fox Inc. (FOX, FOXA), the New York Post reported.

--The Justice Department's approval of Walt Disney Co.'s (DIS) purchase of Fox's entertainment assets included a condition that Disney divest itself of Fox regional sports networks that compete with its own ESPN.

--A source told the Post that it is a "foregone conclusion" that the Yankees will exercise their right of first refusal for the 80% stake, and said the team is talking to strategic and financial parties about dividing up ownership.

 

[Rodan75]

From DowJones Newswire....

--The New York Yankees, which own 20% of the YES Network, are in talks to buy the 80% held by 21st Century Fox Inc. (FOX, FOXA), the New York Post reported.

--The Justice Department's approval of Walt Disney Co.'s (DIS) purchase of Fox's entertainment assets included a condition that Disney divest itself of Fox regional sports networks that compete with its own ESPN.

--A source told the Post that it is a "foregone conclusion" that the Yankees will exercise their right of first refusal for the 80% stake, and said the team is talking to strategic and financial parties about dividing up ownership.

So with a ROFR will they have to match the highest bid? That should make all of this very interesting, I wonder if some of the other channels have similar provisions.

 

[bartholomr4]

So with a ROFR will they have to match the highest bid? That should make all of this very interesting, I wonder if some of the other channels have similar provisions.

Could also make the sale process less interesting to some buyers, as they know they will have to pay top dollar (perhaps above their market value) to get he asset, vs. the bidder with the ROFR. (i.e. the Yankee's have other economic interests i.e. Yankee Franchise value [or value assigned to the actual team] will be higher than a typical bidder [who doesn't have any ownership]).

The bidders are going to have to have some economic advantage over the team owners (i.e. an existing network, talent, broadcast infrastructure, etc.) in order to make the bid work economically.

 

[Lafayettecalboy]

I known this will not be done by Jan 1, 2019, but by that date will we hear more progress on the Disney Fox deal?

 

[JoeCamel]

I known this will not be done by Jan 1, 2019, but by that date will we hear more progress on the Disney Fox deal?

Pretty much weekly progress at this point. Approvals and conditions have been coming in all this and last month.

 

[Lafayettecalboy]

For some reason, although it has not left the EU yet until 2019, apparently UK is listed as being one of the places required to approve the deal although it is still part of the EU which just approved the deal with conditions.

 

[JoeCamel]

For some reason, although it has not left the EU yet until 2019, apparently UK is listed as being one of the places required to approve the deal although it is still part of the EU which just approved the deal with conditions.

Not sure EU approval is binding on all countries in the EU. Broadcast/vid services can be different but I have no real info on the exact scenario that the UK has to give its approval.

 

[Indy_UK]

We may have to approve separately because we are leaving the EU in march?

I really dont see the UK having any approval issues

 

[Lafayettecalboy]

We may have to approve separately because we are leaving the EU in march?

I really dont see the UK having any approval issues

Well Ireland which is still going to be part of the EU is grouped together with the UK in box office, and they have the same cable channels of both Disney and Fox, and of course the A&E channels where Disney is going to divest of. UK surely will have no problem and I think they will follow the EU and approve it.

 

[bartholomr4]

Rupert Murdoch, and sons, begin their goodbyes to 21st Century Fox

https://lat.ms/2FwJ42m

 

[Indy_UK]

 

[bartholomr4]

BREAKING: Walt Disney receives unconditional approval from China for Twenty-First Century Fox deal (via @JBoorstin) http://cnbc.com

Disney, Fox jump as China OKs $71B media asset deal

Nov. 19, 2018 10:57 AM ET|By: Jason Aycock, SA News Editor
Disney (DIS +0.9%) and Fox (FOX +2.9%, FOXA +2.9%) have hit session highs on word that China has given unconditional approval to their $71B asset deal.

The Chinese approval wasn't a slam dunk, and many investors fretted whether trade tensions could play a role in scuttling the deal.

Now with a few other jurisdictional approvals, the deal could close sooner than expected.

 

[Rodan75]

BREAKING: Walt Disney receives unconditional approval from China for Twenty-First Century Fox deal (via @JBoorstin) http://cnbc.com

Disney, Fox jump as China OKs $71B media asset deal

Nov. 19, 2018 10:57 AM ET|By: Jason Aycock, SA News Editor
Disney (DIS +0.9%) and Fox (FOX +2.9%, FOXA +2.9%) have hit session highs on word that China has given unconditional approval to their $71B asset deal.

The Chinese approval wasn't a slam dunk, and many investors fretted whether trade tensions could play a role in scuttling the deal.

Now with a few other jurisdictional approvals, the deal could close sooner than expected.

While I don't there there should have been any conditions considering Fox's miniscule presence in China, you have to give some of this credit to Iger for working so diligently on the Chinese Leadership during the Shanghai process.

 

[Twilight_Roxas]

I almost had a heart attack when I read this.

 

[mab7689]

So much longer do we think it will be till it closes? I trust Iger and Rice when they say 2019 but I wonder when? Will it be on Jan 1st or will we have to wait a bit longer? If so will it be done by the end of Q1?

 

[bartholomr4]

So much longer do we think it will be till it closes? I trust Iger and Rice when they say 2019 but I wonder when? Will it be on Jan 1st or will we have to wait a bit longer? If so will it be done by the end of Q1?

They can legally close it once they get all of the regulatory approvals. However, the two companies have different financial calendars. 21CF is on a typical 4 quarter calendar which closes at the end of each quarter (March 31, June 30, Sept 30 and Dec 31). Disney however does not. Their calendar is different and this year the Fiscal Year ended on Sept 29th, Last year it was October 1st and the Year before if was Oct 3rd.

The point being, the two companies will have a bit of work to do to consolidate their financials, and choose one of the quarter ends to close the books and combine the two companies on whatever calendar they choose to move forward with. If they move forward on the Disney Calendar (my bet) the next quarter closes around Jan 5th..... So, I am guessing "Legal Day 1" for the combined companies will be Jan 6th.

You could also assume they will close it on 12/31/18 (Fox Year end), or just close it whenever (Like Comcast did with Sky).... depends on how quickly they want to pull this off and who is in the driver seat.....

My guess is Jan 5th, 2019......

 

[bartholomr4]

Amazon bids for Disney's 22 regional sports networks, including YES Network, sources say
David Faber | @DavidFaber
Published 4 Mins Ago
CNBC.com
Bidding Begins For | Regional Sports Networks

Per David Faber, Amazon has highest bid For Disney's 22 Regional Sports Networks per sources.

Additionally, Amazon will join Blackstone and a sovereign wealth fund, in a Joint Ownership with the Yankees for the Yes Network Bids-sources

2nd Round Bids are Expected Before Year-end per these same sources. There is still a Potential For Fox To Join in later rounds

Private Equity Bids expected to increase In 2nd Round. Due Diligence To Begin Next Week. The second round will occur in the second week of December.

 

[Indy_UK]

Good, let Amazon pay top dollar for them

 

[Rodan75]

Good, let Amazon pay top dollar for them

Exactly, make some money off of them before they try to outbid Disney for MNF.

 

[Lafayettecalboy]

I wonder post-acquisition because Fox has made a few NC-17 movies, most notably 2011 Fox Searchlight movie 'Shame' what will happen to them because I heard that Disney has a strict no NC-17 movie policy they enforce, and they also had that policy when they both had Touchstone and Miramax.