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

AnotherDayAnotherDollar

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
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.

It just strikes me as off that every single country can veto a merger...
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.
 

Darkprime

Active Member
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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
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
How ironic seeing as martin is whistling in the Brazil Pavilion coming to Epcot thread.
 

seascape

Well-Known Member
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

Active Member
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.
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.
 

Darkprime

Active Member
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
My initial thoughts would just sell Fox sports off probably back to new Fox? It's ESPN Disney care about
ESPN is a **** poor name outside of the US. IIRC Fox Sports and Sky are much bigger deal sportswise in Brazil.

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 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.
 

The Moles Family

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.
 

MisterPenguin

Rumormonger
Premium Member
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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I could see Marvel fans backlashing Brazil if they try to block the merger to the point accusing them for killing the dream.
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.
 

Darkprime

Active Member
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.
 
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.
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.
 

Darkprime

Active Member
Finally an update from CADE. Doesnt really tell us anything new tho.


The Plenary of the Administrative Council of Economic Defense (CADE), in its acronym in Portuguese) approved a proposition from commissioner Paulo Burnier to send official letters in order to gather more information regarding the acquisition of Twenty-First Century Fox by The Walt Disney Company.

The merger was notified to Cade on July 20, 2018. Among other markets, the companies operate in the distribution of motion pictures to movie theaters, as well as in the distribution and licensing of TV contents, licensing of merchandising and programs on cable TV.

In December of the last year, CADE's General Superintendence (SG/CADE) decided to send the case to the Court analysis. After reviewing the data collected throughout the initial phase of the process, SG/Cade verified that the companies' business merger raises competition concerns on the cable sports channels market - which include ESPN and Fox Sports.

According to the Superintendence, currently, there is only one large audience competitor capable of competing with those channels and there is no probability of a future scenario for the next years with newcomers on this market. Furthermore, ESPN and Fox Sports are currently the closest competitors that broadcast international sports content.


The case is still under review by CADE´s Administrative Tribunal. The legal deadline is 240 days, which can be extended for more 90 days. Until now, there is no final decision from the authority.
 

Darkprime

Active Member
Sometimes I wish I could just forget about this deal. let a few months go by and log on one day and see its been completed. Being so invested as a marvel fan and following every step makes it seem like its taking forever.
 

Darkprime

Active Member
Mexico IFT update (automatically translated into English on Google Chrome mobile browser)
If I'm comprehending this right, it looks like they haven't set a date to meet on it yet but their decision won't be revealed publicly when they do.
well that sucks. at least it seems slightly more positive than Brazil. Hopefully IFT approves with conditions. Maybe CADE is waiting to see what IFT does? Im sure both IFT and CADE are talking since both have "concerns" about sports channels.
 
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