So does this mean Brazil and Mexico are the last regulatory approvals required?
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News Disney and Fox come to terms -- announcement soon; huge IP acquisition
- Thread starter ohioguy
- Start date
So does this mean Brazil and Mexico are the last regulatory approvals required?
bartholomr4
Well-Known Member
Disney is not reporting what is left, so your guess is as good as anyone's.
Being from the UK I'd have expected to have seen something if our government had approved and gone public. Until we get anything official from Disney or Fox I'll just assume anything not publicly declared is still pending.
CaptainAmerica
Premium Member
I'm pretty sure (though not positive) that the UK has already granted approval. That was back when Sky was still in play, and their only concerns were regarding Sky itself.
Perhaps the takeover of Sky as a separate entity was the required UK approval then, rather than the whole thing itself, and I've misunderstood.
Additionally, others in here have said Australia has granted approval (I just can't find any public statements on that)
In that case that leaves Israel, Japan and South Korea.
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Lafayettecalboy
Member
I think those last three they do not have announcements or statements made about approvals unless they put conditions on a merger. So it is possible they may have given approval quietly. I think with those out of the way it would leave Latin America left.
Kamikaze
Well-Known Member
You're still part of the EU (and will be until after this is done, Brexit or not), so the EU approval would cover you.
bartholomr4
Well-Known Member
https://nypost.com/2018/12/10/disney-plans-to-split-up-foxs-local-sports-networks-to-sell/
Disney’s auction of Fox’s chain of local sports TV networks has proven to be such a complicated process that the Mouse House has decided to offer up the networks piecemeal, The Post has learned. Bankers for Disney had hoped to sell the 22 regional sports networks, or RSNs, to a single buyer in a deal to address antitrust concerns over Disney’s pending $71.3 billion merger with Fox, sources said.
A single deal would have made regulatory approvals simpler and quicker — a pressing concern given that the RSNs must be sold within 90 days of Disney’s closing on its Fox deal. Nevertheless, concerns about continued cord-cutting among cable TV subscribers have forced the bankers, JPMorgan Chase and Allen & Co., to get creative as they scramble to fetch a solid overall price, insiders say. As such, they’re now conducting management meetings with multiple suitors, including those interested in just a single RSN, sources said.
Sinclair Broadcasting, in partnership with private equity firm CVC Capital Partners, is the only known serious party that has made an offer for all the RSNs — but sources said it was a lowball bid. Buyout firm Apollo Global Management has bid for nearly all of the RSNs but needs a strategic partner, and so has local TV giant Nexstar Media Group. But Nexstar is not seen as a serious suitor because it just agreed to pay more than $6 billion for its rival Tribune Media, sources said.
Charter Communications, meanwhile, has bid for Fox Sports South, the RSN for the Atlanta Braves, sources said. Minnesota Twins owner Jim Pohlad has expressed interest in Fox Sports North, which carries his team, the NBA’s Minnesota Timberwolves and the NHL’s Minnesota Wild. Pohlad didn’t return calls. Disney’s bid for Fox gave the deal a multiple of 14.8 times fiscal 2018 Ebitda — up from a 10.9 times multiple in Disney’s original offer. Still, most analysts believe the RSNs aren’t even likely to fetch 10 times Ebitda, or $20 billion.
The RSNs, which make up the biggest asset group Disney is acquiring from Fox, generate about $2 billion a year in Ebitda, or earnings before interest, taxes, depreciation and amortization. There is a chance late suitors will emerge to bolster the auction, sources said.
Major League Baseball has expressed interest in buying some, or maybe all, of the RSNs. A simple majority of team owners would need to approve a purchase. Fox, which shares a common owner with News Corp., publisher of The Post, could buy back its networks. The YES Network — which carries the New York Yankees and is 20 percent owned by the Yankees and 80 percent owned by Fox — is considered a cut above the other RSNs. The Yankees, who have the right of first refusal to reacquire Fox’s stake, are talking with Amazon and others to help fund a deal. Amazon is not interested in buying the rest of the RSNs, sources said.
Disney’s auction of Fox’s chain of local sports TV networks has proven to be such a complicated process that the Mouse House has decided to offer up the networks piecemeal, The Post has learned. Bankers for Disney had hoped to sell the 22 regional sports networks, or RSNs, to a single buyer in a deal to address antitrust concerns over Disney’s pending $71.3 billion merger with Fox, sources said.
A single deal would have made regulatory approvals simpler and quicker — a pressing concern given that the RSNs must be sold within 90 days of Disney’s closing on its Fox deal. Nevertheless, concerns about continued cord-cutting among cable TV subscribers have forced the bankers, JPMorgan Chase and Allen & Co., to get creative as they scramble to fetch a solid overall price, insiders say. As such, they’re now conducting management meetings with multiple suitors, including those interested in just a single RSN, sources said.
Sinclair Broadcasting, in partnership with private equity firm CVC Capital Partners, is the only known serious party that has made an offer for all the RSNs — but sources said it was a lowball bid. Buyout firm Apollo Global Management has bid for nearly all of the RSNs but needs a strategic partner, and so has local TV giant Nexstar Media Group. But Nexstar is not seen as a serious suitor because it just agreed to pay more than $6 billion for its rival Tribune Media, sources said.
Charter Communications, meanwhile, has bid for Fox Sports South, the RSN for the Atlanta Braves, sources said. Minnesota Twins owner Jim Pohlad has expressed interest in Fox Sports North, which carries his team, the NBA’s Minnesota Timberwolves and the NHL’s Minnesota Wild. Pohlad didn’t return calls. Disney’s bid for Fox gave the deal a multiple of 14.8 times fiscal 2018 Ebitda — up from a 10.9 times multiple in Disney’s original offer. Still, most analysts believe the RSNs aren’t even likely to fetch 10 times Ebitda, or $20 billion.
The RSNs, which make up the biggest asset group Disney is acquiring from Fox, generate about $2 billion a year in Ebitda, or earnings before interest, taxes, depreciation and amortization. There is a chance late suitors will emerge to bolster the auction, sources said.
Major League Baseball has expressed interest in buying some, or maybe all, of the RSNs. A simple majority of team owners would need to approve a purchase. Fox, which shares a common owner with News Corp., publisher of The Post, could buy back its networks. The YES Network — which carries the New York Yankees and is 20 percent owned by the Yankees and 80 percent owned by Fox — is considered a cut above the other RSNs. The Yankees, who have the right of first refusal to reacquire Fox’s stake, are talking with Amazon and others to help fund a deal. Amazon is not interested in buying the rest of the RSNs, sources said.
Lafayettecalboy
Member
I have to admit my main reason for my interest in this deal and my hope that all foreign regulators will approve it is that I want the X-Men and Fantastic Four to be in the MCU. I known the Marvel movie rights are not the main reason for this deal and Disney did not spend $71.3 billion for Marvel movie rights, but I do not want it to fail, and not having them in the MCU. I just hope to god that Disney can deal with Latin American regulators.
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brodie999
Active Member
Me too. In the meanwhile, let's try our hardest to find news where the rest of the foreign regulators that haven't approved the deal yet have done so. Hopefully, Brazil and Mexico will approve it by the end of the month and the deal will be completed by January 1st just like Peter Rice reportedly told employees.
Twilight_Roxas
Well-Known Member
That's why Marvel fans could easily be angered. Remember what happen to Comcast when they try to steal Fox from Disney?
bartholomr4
Well-Known Member
From Screamscape:
(12/12/18) Unless the unlikely event that Genting and Fox/Disney can come to an agreement on new licensing terms, the nearly finished 20th Century Fox World theme park in Malaysia will need to update the various IP and themes in place before it can open. On the more simple front, they could just remove some of the themeing and open the attractions in a generic form until they can come up with a new plan, though that could provide for a rather odd experience. Based on the latest construction photos posted to ThemeparX, there is some pretty extensive looking theming in place on the outdoor attractions that could give them something to work with at least.
That said, a post on the same site says that workers will begin to remove any themeing that is IP specific from the park over the next month or so. They also claim that some early talks with both Universal Studios and Six Flags may have begun as well. Universal may have the easy advantage here, as they are already partners with Genting for Universal Studios Singapore, though I’m not sure how likely they will be to Gentings desire to slam in some new IPs as quickly (and cheaply) as possible in order to get the park open. There is where Six Flags could be an easier option, as often Six Flags themeing is kept to a minimum where the ride hardware instead is the key draw.
(12/12/18) Unless the unlikely event that Genting and Fox/Disney can come to an agreement on new licensing terms, the nearly finished 20th Century Fox World theme park in Malaysia will need to update the various IP and themes in place before it can open. On the more simple front, they could just remove some of the themeing and open the attractions in a generic form until they can come up with a new plan, though that could provide for a rather odd experience. Based on the latest construction photos posted to ThemeparX, there is some pretty extensive looking theming in place on the outdoor attractions that could give them something to work with at least.
That said, a post on the same site says that workers will begin to remove any themeing that is IP specific from the park over the next month or so. They also claim that some early talks with both Universal Studios and Six Flags may have begun as well. Universal may have the easy advantage here, as they are already partners with Genting for Universal Studios Singapore, though I’m not sure how likely they will be to Gentings desire to slam in some new IPs as quickly (and cheaply) as possible in order to get the park open. There is where Six Flags could be an easier option, as often Six Flags themeing is kept to a minimum where the ride hardware instead is the key draw.
A big reason for me too, plus, as an even bigger Star Wars fan, a thread of hope that gaining the rights to the original trilogy will lead to an official remaster and reissue of the theatrical cuts.
Lafayettecalboy
Member
The main reason I think that Disney was buying Fox is that of streaming I think, were their other reasons too?
capsshield
Active Member
I suspect that this purchase adds 10 to 20 years of a guaranteed 5 - 7 billion in movie studio revenue to the company per year.
The X-Men and Fantastic Four will generate 1 billion plus per movie once established and when they cross over with the Avengers 2 billion plus a movie. Consumer sales, Rentals, pay per view, and anything they can tie into the movies will also generate equal sums of money.
The streaming service is protection and ensures they have a delivery system in place for their products. "Go ahead cut the cable. We will still be here".
I think it's a much bigger and important deal than most people suspect or realize.
The X-Men and Fantastic Four will generate 1 billion plus per movie once established and when they cross over with the Avengers 2 billion plus a movie. Consumer sales, Rentals, pay per view, and anything they can tie into the movies will also generate equal sums of money.
The streaming service is protection and ensures they have a delivery system in place for their products. "Go ahead cut the cable. We will still be here".
I think it's a much bigger and important deal than most people suspect or realize.
Don't forget that revenue isn't profit. The total MCU brought in $17.5 billion in revenue in the theatrical window. But after production and marketing costs and revenue-sharing with theaters, that's only $3 billion in profit.
But, that's the theatrical window. I'm sure there a big pile o'money somewhere for the profit from the digital window and merchandise...
Lafayettecalboy
Member
Find this out from CTFN although only partial words are available since a subscription is required: CADE Likely to Clear Fox/Disney with Behavioral Remedies Early in 2019.
Indy_UK
Well-Known Member
They must have made a lot more than $3 billion profit from all those films by now no?
Not in the theatrical window (i.e., what they did at the Box Office).
These are big budget movies. That average production budget is close to $200 million. Then, as a rough guess, marketing costs is about half of that (though, probably a lot more). So, that's $300 million in costs.
The studio only gets half of the Box Office (probably actually less than half). The other half goes to the theater companies. The average MCU movie's Box Office is close to $900 million, so, Disney only gets $450 million.
Thus, the average net profit in the theatrical window is $150 million. Multiply that by 20 films... $3 billion profit.
And like I said, that's just the theatrical window. DVD sales, streaming, and merch only adds to that.
capsshield
Active Member
I've often wondered how much money is generated off of merchandise and everything else associated with a movie. I suspect it could be half to double what the box office does especially if the IP catches on.
I look at Nightmare before Christmas clearly the movie now generates a steady income greater than the box office and probably the merchandise profits have exceeded box office revenue.
I suppose Disney has a pretty big problem on their hands keeping all of their IP relevant and making a profit. If they let it slip it can loose tremendous value for the company. They used to rotate their movies every seven years or so which kept things fresh, but now they have so many available a consumer can get lost in the choices.
Now add in Fox and the problem has doubled.
I'm thinking this will lead to even more sequels than we get now.