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

[Slpy3270]

CADE officially approves Disney-Fox merger with 4-2 vote, under condition that Disney sell off Fox Sports Brazil, including sports rights, employees, and all other assets (ESPN Brazil unaffected). Deadline for sale undisclosed.



If Disney fails to sell the sports channels by the deadline, CADE could review the transaction again, or force Disney to pay a fine. The big question: who will buy these channels?

According to CADE, nine companies (!!!) are interested in the properties.

 

[Lafayettecalboy]

@Slpy3270 With these 9 companies there could be a similar bidding just like the rsns in America.

 

[Slpy3270]

@Slpy3270 With these 9 companies there could be a similar bidding just like the rsns in America.

And that's what worries me. Will Disney be able to find an acceptable offer without having to write-off potential profits from the sale? Given how the US sports channel auctions are going (reportedly, not good), I'm not optimistic.

 

[Slpy3270]

!!!!!!!!!!!!!!

Fox Rocked by $179M 'Bones' Ruling: Lying, Cheating and "Reprehensible" Studio Fraud

The ruling calls out Peter Rice, Dana Walden and Gary Newman for deceptive practices regarding licensing the series Bones to Hulu. Rice and Walden are heading to Disney. The implications of this to the deal are HUGE, and it a) puts Iger in a very uncomfortable position, and b) puts their entire streaming ambitions in disarray.

Fox Rocked by $179M ‘Bones’ Ruling: Lying, Cheating and “Reprehensible” Studio Fraud

In a long-running legal battle over profits from Fox's 'Bones,' the David Boreanaz-Emily Deschanel hit, an arbitrator's stunning decision calls out top executives Peter Rice, Dana Walden and Gary Newman and could alter the economics of hit shows in the streaming era.

www.hollywoodreporter.com

 

[Quinnmac000]

!!!!!!!!!!!!!!

Fox Rocked by $179M 'Bones' Ruling: Lying, Cheating and "Reprehensible" Studio Fraud

The ruling calls out Peter Rice, Dana Walden and Gary Newman for deceptive practices regarding licensing the series Bones to Hulu. Rice and Walden are heading to Disney. The implications of this to the deal are HUGE, and it a) puts Iger in a very uncomfortable position, and b) puts their entire streaming ambitions in disarray.

Fox Rocked by $179M ‘Bones’ Ruling: Lying, Cheating and “Reprehensible” Studio Fraud

In a long-running legal battle over profits from Fox's 'Bones,' the David Boreanaz-Emily Deschanel hit, an arbitrator's stunning decision calls out top executives Peter Rice, Dana Walden and Gary Newman and could alter the economics of hit shows in the streaming era.

www.hollywoodreporter.com

Yep the long term effects if other producers realize they were inadequately paid will have a huge ripple effect not just in regards to the television show side but distribution to the cable networks

 

[Indy_UK]

Can't made head or tale of that article as it went on for too long.

 

[Quinnmac000]

Can't made head or tale of that article as it went on for too long.

The producers of Bones (including the stars, David Boreanaz and Emily Deschanel) were screwed out of streaming royalties by Fox execs and backhanded dealings amongst Fox subsidiaries, including Hulu (which they own a stake in). They used some creative accounting to claim that the show was a money-loser when it was actually profitable, and if the show lost money then the producers wouldn't get the royalties, that money instead staying with Fox.

Actually the bigger deal is that two of the named parties who are supposed to stay on when the Disney/Fox merger is complete possibly falsified testimony making it likely they did it with other shows as well.

In coming to a decision, Lichtman describes how some of Fox’s top executives, including 21st Century Fox president Peter Rice and Fox TV CEO Dana Walden (soon to be top executives at Disney) plus Fox TV chairman Gary Newman (leaving Fox) “appear to have given false testimony in an attempt to conceal their wrongful acts.” According to the ruling, Fox has taken a “cavalier attitude toward its wrongdoing" and exhibits a "company-wide culture and an accepted climate that enveloped an aversion for the truth."

Slamming the company with a punishment that includes $128 million in punitive damages, or five times the amount of compensatory damages, Lichtman points out that the award is 0.6 percent of 21st Century Fox’s stipulated net worth.

He muses whether it’s really enough.

“In fact, one could question whether a five to one ratio given Fox’s financial condition and lack of contrition serves to deter the wrongful conduct at issue here, or whether it will be considered part of the cost of doing business,” writes the arbitrator.

 

[Darkprime]

Variety confirms t

!!!!!!!!!!!!!!

Fox Rocked by $179M 'Bones' Ruling: Lying, Cheating and "Reprehensible" Studio Fraud

The ruling calls out Peter Rice, Dana Walden and Gary Newman for deceptive practices regarding licensing the series Bones to Hulu. Rice and Walden are heading to Disney. The implications of this to the deal are HUGE, and it a) puts Iger in a very uncomfortable position, and b) puts their entire streaming ambitions in disarray.

Fox Rocked by $179M ‘Bones’ Ruling: Lying, Cheating and “Reprehensible” Studio Fraud

In a long-running legal battle over profits from Fox's 'Bones,' the David Boreanaz-Emily Deschanel hit, an arbitrator's stunning decision calls out top executives Peter Rice, Dana Walden and Gary Newman and could alter the economics of hit shows in the streaming era.

www.hollywoodreporter.com

Your making this a bigger deal than it really is. They will sort it out behind closed doors. Fox will most likely settle. Maybe well see some leadership changes when the deal completes. But the merger is still happening.

 

[Slpy3270]

Your making this a bigger deal than it really is. They will sort it out behind closed doors. Maybe well see some leadership changes when the deal completes. But the merger is still happening.

I'm not saying this will kill merger. What I'm saying is that this puts Disney in massive legal red tape that could destroy their streaming ambitions and put them in hot water among creatives in Hollywood.

 

[Darkprime]

So I was checking out the Variety article and for the first time one of the major trades mention Chile as one of the Latin America countries that need to give approval. And they confirm what I thought for a while now that Brazil, Mexico and Chile apparently were talking to each other re the Fox Sports channels.

The regulators’ statement indicated that Brazilian antitrust authorities have conferred with their Mexican counterparts in evaluating the transaction, which suggests that approval from Mexico could be coming within days. “In Latin America, the close dialogue between agencies in Brazil, Mexico and Chile resulted in a coordinated solution to the case,” the Brazilian council wrote.

Disney-Fox Merger Nears Completion as Brazil Grants Approval With Conditions

Disney took a big step toward completing its purchase of Fox after Brazil granted conditional approval of the deal Wednesday.

variety.com

 

[Indy_UK]

The producers of Bones (including the stars, David Boreanaz and Emily Deschanel) were screwed out of streaming royalties by Fox execs and backhanded dealings amongst Fox subsidiaries, including Hulu (which they own a stake in). They used some creative accounting to claim that the show was a money-loser when it was actually profitable, and if the show lost money then the producers wouldn't get the royalties, that money instead staying with Fox.

Actually the bigger deal is that two of the named parties who are supposed to stay on when the Disney/Fox merger is complete possibly falsified testimony making it likely they did it with other shows as well.

Thank You, that makes total sense.

From Disneys point of view, they would probabaly be best to just lay off the execs that were meant to move over with the merger

 

[Darkprime]

Thank You, that makes total sense.

From Disneys point of view, they would probabaly be best to just lay off the execs that were meant to move over with the merger

Yep which is a real shame, those Fox folks are talented and good at what they do for the most part.

 

[Slpy3270]

This is going to come back to haunt him once more TV producers speak out.

 

[Darkprime]

This is going to come back to haunt him once more TV producers speak out.

How so? its a fairly neutral response.

 

[Quinnmac000]

Yep which is a real shame, those Fox folks are talented and good at what they do for the most part.

well...it seems bob is staying with them...until more lawsuits

Bob Iger Backs Peter Rice & Dana Walden After Fox Execs Slammed In ‘Bones’ Arbitration Award

The soon-to-be ex Fox execs got a strong sign of support from their soon-to-be new boss after they were called out in a big bucks award

deadline.com

 

[Slpy3270]

How so? its a fairly neutral response.

That he casted the executives in a positive light in the face of potential criminal activity is seriously going to make Hollywood creatives hesistate to work for Disney, especially if they bring the two in as planned whilst more potential lawsuits start to affect their new TV studio's profits.

 

[Darkprime]

That he casted the executives in a positive light in the face of potential criminal activity is seriously going to make Hollywood creatives hesistate to work for Disney, especially if they bring the two in as planned whilst more potential lawsuits start to affect their new TV studio's profits.

Even if they wanted to. Disney cant just rescind Rice and Walden's job offers. it could be part of the merger contract and they will wait until after the merger closes before they do anything.

 

[AnotherDayAnotherDollar]

Variety: Disney in talks to acquire AT&T's Hulu stake

Walt Disney (DIS -0.7%) is in active talks with AT&T (T -0.6%) about acquiring the latter's 10% stake in Hulu, Variety reports.

AT&T holds the 10% through WarnerMedia, after the now-acquired Time Warner bought in to Hulu to join other partners Disney, Fox (FOX -0.9%, FOXA -0.9%) and Comcast (CMCSA -0.8%).

Disney's acquisition of WarnerMedia's stake, combined with the 30% it's set to acquire through its $71B asset deal with Fox, would bring Disney's control of Hulu to 70%.

Comcast has said that it's not yet interested in parting with its 30% in the venture.

Variety article:

Disney in Active Talks With AT&T to Acquire WarnerMedia’s 10% Hulu Stake (EXCLUSIVE)

Disney is in active discussions with AT&T to acquire the 10% stake that WarnerMedia owns in the streaming joint venture.

variety.com

 

[Slpy3270]

A bit awkward to be discussing that now when the service is about to be the center of massive accounting fraud lawsuits.

 

[happycamperuni]

AT&T's Hulu stake comes with no board members or ownership say, so the ratio of control would remain 2:1 in Disney's favor even though I guess Disney would take 70% of the losses (or profits eventually) while Comcast takes 30% of the losses (or profits eventually).