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News Disney and Fox come to terms -- announcement soon; huge IP acquisition
- Thread starter ohioguy
- Start date
brodie999
Active Member
Yeah, me too. Hopefully, if Brazil approves the deal tomorrow, it closing in late this month will become more likely than ever. Geez, they really are quick when it comes to making deals.
Slpy3270
Well-Known Member
StreetInsider, citing Bloomberg (paywall): Disney meeting on Fox merger said to end "inconclusive."
(Bloomberg) - A crucial meeting on Tuesday between Brazil's regulators and Walt Disney Co. executive director Robert Iger over a proposed US $ 71 billion deal with 21st Century Fox Inc. ended without any agreement, representing a potential obstacle for the entertainment giant.
Brazil's antitrust regulator, known as Cade, has not yet decided a date for a decision on the agreement, according to two people close to the discussions. The legal deadline for a decision is March 17 and, if the case is not discussed at the February 27 meeting of Cade, an extension should be requested, said the people, who requested anonymity because the discussions are not public .
Brazilian regulators are still divided over whether the agreement can be approved without the need for Disney to sell one of the two sports channels in the country, Fox Sports or ESPN, the people said. In December, Cade published a report that said the agreement could pose a danger to the competition. Some Cade board members still see behavioral remedies as a viable option to obtain approval.
Iger and his lawyers declined to comment after the meeting.
Original Note: Disney's Brazil Meeting Is Said to End Without Fox Deal Accord
Reporter in the original note: Mario Sergio Lima in Brasilia Newsroom
(Bloomberg) - A crucial meeting on Tuesday between Brazil's regulators and Walt Disney Co. executive director Robert Iger over a proposed US $ 71 billion deal with 21st Century Fox Inc. ended without any agreement, representing a potential obstacle for the entertainment giant.
Brazil's antitrust regulator, known as Cade, has not yet decided a date for a decision on the agreement, according to two people close to the discussions. The legal deadline for a decision is March 17 and, if the case is not discussed at the February 27 meeting of Cade, an extension should be requested, said the people, who requested anonymity because the discussions are not public .
Brazilian regulators are still divided over whether the agreement can be approved without the need for Disney to sell one of the two sports channels in the country, Fox Sports or ESPN, the people said. In December, Cade published a report that said the agreement could pose a danger to the competition. Some Cade board members still see behavioral remedies as a viable option to obtain approval.
Iger and his lawyers declined to comment after the meeting.
Original Note: Disney's Brazil Meeting Is Said to End Without Fox Deal Accord
Reporter in the original note: Mario Sergio Lima in Brasilia Newsroom
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AnotherDayAnotherDollar
Well-Known Member
Disney will, without a doubt, want to keep ALL sports channels. Iger reiterated and gushed over all important live sports are in the most recent quarterly call (where he announced that ESPN+ reached 2MM subscribers). If they can have behavioral remedies, they will. It's better for them long term to keep it.
A few months delay won't make a difference as long as it closes by December 2019, otherwise the deal is called off as per the SEC filing IIRC.
Every country where the two companies have businesses in. And it makes sense. The HQs are in the US so Disney could give in or get out of the market altogether, but they are not going to do that, of course.
Maybe Comcast new this would happen...Brazil denies the deal Comcast comes back with a massive 80 billion dollar bid. I hope Disney can sort things out I really do. But Fox would have no choice to accept if Disney can't get approval in Brazil or is not willing to divest fox sports. This Was a massive oversight by Disney and Fox for not thinking fox sports and ESPN merging would not be an issue.
flyerjab
Well-Known Member
How ironic seeing as martin is whistling in the Brazil Pavilion coming to Epcot thread.
There is no way Brazil or Mexico can stop this deal. Disney's hands are tied to the fact if they don't complete the deal they have to pay a multi billion dollar breakup fee. That is much more that the sports rights for these two countries are worth. That said if Brazil and Mexico are insistent on a split, the best possible resolution to this would be to end the sale of the RSNs and spin them off with the Fox Sports networks on Brazil and Mexico as a separate company.
Slpy3270
Well-Known Member
That is, unless executives and/or TV/film producers working for Disney and Fox opt to jump ship to Netflix and/or Amazon because of all the uncertainty regarding the merger closing, which would affect Disney's ability to attract talent post-merger. It's why Ryan Murphy (American Horror Story) and Channing Dungey (ABC) went to Netflix, and Steven Levitan (Modern Family) is eager to jump ship to ABC Studios following his contract expiration with 20th Century Fox TV, but may change his mind if the uncertainty convinces Netflix or Amazon to offer him a contract with higher pay and greater creative freedom.
That's a good point. I think if some of the Fox talent start jumping ship iger will have no choice but to divest or spin off fox sports to close the deal asap. I mean whats gonn happen if the fox execs jump ship the deal finally closes and he has no one to run the Fox assets because it took too long?
AnotherDayAnotherDollar
Well-Known Member
ESPN is a poor name outside of the US. IIRC Fox Sports and Sky are much bigger deal sportswise in Brazil.
That has more to do with the amount of money Netflix is spending so they can have original content they own, but yeah good point nonetheless.
Indy_UK
Well-Known Member
I was watching a lot of Collider Channel YouTube videos recently and one of them talks about this Fox deal.
They are hearing from their friends who work at Fox that apparently up to 4,000 or so staff memebers are being let go or leaving as part of this deal.
What didn't make sense is that apparently Fox and Fox searchlight currently put out about 11-14 films a year but under Disney, they want to reduce that to 4 movies a year.
They are hearing from their friends who work at Fox that apparently up to 4,000 or so staff memebers are being let go or leaving as part of this deal.
What didn't make sense is that apparently Fox and Fox searchlight currently put out about 11-14 films a year but under Disney, they want to reduce that to 4 movies a year.
That can't be right. Iger has said over and over that he supports those studios' output (and the prestige they have at awards time).
Now, given that, Iger has also said that Disney+ will be able to offer a lot of original programming because they have so many studios in place that can make stuff for D+.
So, perhaps, the Fox film studios may be putting out less theatrical films, but, at the same time, ramp up more production to feed the hungry, hungry Disney+.
Twilight_Roxas
Well-Known Member
I could see Marvel fans backlashing Brazil if they try to block the merger to the point accusing them for killing the dream.
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Lafayettecalboy
Member
Well, they should blame Disney, because Brazil is willing to approve the merger with conditions regarding cable sports with divestments being preferred although behavioral conditions are preferred by some.
Looking back on it now I wonder if it would have been better if Fox just took its assets to auction (I believe this was rumoured at one point when Comcast came into the game) and Disney only bought a few things like the tv and movie studio and FX and NatGeo instead. This could end up being a case of Disney getting too greedy.
Lafayettecalboy
Member
Well if all else fails, and I known it could be painful for Disney to do but they might just divest the Fox Sports network in Brazil as the last resort.