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

seascape

Well-Known Member
well yea buying individual movie rights is different to a studio. And the DOJ wouldn't even be involved in that situation. But I mean everybody keeps bringing up the 40% box office but thats a hypothetical. Iger has already said they actually plan to have Fox make less movies, downsizing to just 4 releases a year under Fox. The DOJ had no issue with Disney buying Fox outside the Fox Sports and ESPN merging. Probably because they can see the rise in streaming studios like Netflix, Amazon and Apple to compensate for all the media consolidation.
Disney may keep Fox at 4 but that would not include the extra Marvel movie they will make every year. With X-Man and Fantastic 4 look for one more Marvel release every year. The R rated Deadpool movie and another R rated Marvel movie under Fox will be one of the 4 or more likely 5 Fox movies but then and Fox Searchlight and Fox 2000 to issue another 5 or 6 small movies a year. At the end of the day, I expect Fox/Disney to have at least 12 to 14 major releases a year. Of course this would not include the expanded foreign movies Disney will make in India and China. Also look for some new production in Latin America for release in that market.
 

bartholomr4

Well-Known Member
Disney should not be allowed to buy another studio. I do make an exception on buying part of Sony. I believe the justice department would allow them to buy the movie rights for Spiderman and family back from Sony. Disney/Fox will end this year with over 40% of the Noth American movie box office and could actually hit 50% if all their movies hit.

In 2018 there were 872 moves released into theaters. Disney, 21Century Fox and Fox Light released 36 of them. That is about 4 % of the total. One could argue if the other 96% produced movies that people wanted to see, (like they want to see Disney Movies) they too could have mega movie returns in dollars. There is no guarrantee that Disney and its new acquisition will be able to maintain its revenue dominance, and there is nothing preventing or limiting the market acces of the other96 % of the market. This is one consideration in considering anti-competitive ownership......

Also, Disney through Marvel already owns the rights to Spider-Man and other MCA characters which Sony controls. They have licensed Sony exclusive rights to make and distribute movies on these characters. They receive a royalty payment from Sony for every movie they make and distribute. So if Sony wanted to change the terms on an contract with Disney/Marvel on an asset which Disney/Marvel already own, there really wouldn’t be any purchase of assets.... Instead there would be a change to the rights Sony has to use Disney/Marvels current assets. (My theory is there are Not likely any Anti-trust issues, because Disney / Marvel already owns the characters)
 

Darkprime

Well-Known Member
Disney may keep Fox at 4 but that would not include the extra Marvel movie they will make every year. With X-Man and Fantastic 4 look for one more Marvel release every year. The R rated Deadpool movie and another R rated Marvel movie under Fox will be one of the 4 or more likely 5 Fox movies but then and Fox Searchlight and Fox 2000 to issue another 5 or 6 small movies a year. At the end of the day, I expect Fox/Disney to have at least 12 to 14 major releases a year. Of course this would not include the expanded foreign movies Disney will make in India and China. Also look for some new production in Latin America for release in that market.


Id be surprised if they didn't use Fox to produce a 4th marvel movie a year.
 

SlyCoug

New Member
So are we now assuming that the IFT in Mexico have given the approval privately and the ten day final review period has begun?

If nothing else we can probably infer based on whether or not Disney once again extends the debt exchange offers tomorrow. If they stay as they are (expiration date currently set for March 6th and I believe must occur at least 2 days before closing), it would seem that Disney thinks are on track for next week, or possibly the beginning of the following week.
 
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SlyCoug

New Member
In 2018 there were 872 moves released into theaters. Disney, 21Century Fox and Fox Light released 36 of them. That is about 4 % of the total. One could argue if the other 96% produced movies that people wanted to see, (like they want to see Disney Movies) they too could have mega movie returns in dollars. There is no guarrantee that Disney and its new acquisition will be able to maintain its revenue dominance, and there is nothing preventing or limiting the market acces of the other96 % of the market. This is one consideration in considering anti-competitive ownership......

Also, Disney through Marvel already owns the rights to Spider-Man and other MCA characters which Sony controls. They have licensed Sony exclusive rights to make and distribute movies on these characters. They receive a royalty payment from Sony for every movie they make and distribute. So if Sony wanted to change the terms on an contract with Disney/Marvel on an asset which Disney/Marvel already own, there really wouldn’t be any purchase of assets.... Instead there would be a change to the rights Sony has to use Disney/Marvels current assets. (My theory is there are Not likely any Anti-trust issues, because Disney / Marvel already owns the characters)

I could be wrong, but I don't think antitrust could stop Disney from buying any film rights, unless they were to rule that film intellectual property is finite. Those are private contracts that don't go through any sort of regulatory review, it's just whoever is the highest bidder. If WB wanted to sell the film rights for DC characters to Disney, I don't think anyone would stop them.
 
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AnotherDayAnotherDollar

Well-Known Member
In 2018 there were 872 moves released into theaters. Disney, 21Century Fox and Fox Light released 36 of them. That is about 4 % of the total. One could argue if the other 96% produced movies that people wanted to see, (like they want to see Disney Movies) they too could have mega movie returns in dollars. There is no guarrantee that Disney and its new acquisition will be able to maintain its revenue dominance, and there is nothing preventing or limiting the market acces of the other96 % of the market. This is one consideration in considering anti-competitive ownership......

Also, Disney through Marvel already owns the rights to Spider-Man and other MCA characters which Sony controls. They have licensed Sony exclusive rights to make and distribute movies on these characters. They receive a royalty payment from Sony for every movie they make and distribute. So if Sony wanted to change the terms on an contract with Disney/Marvel on an asset which Disney/Marvel already own, there really wouldn’t be any purchase of assets.... Instead there would be a change to the rights Sony has to use Disney/Marvels current assets. (My theory is there are Not likely any Anti-trust issues, because Disney / Marvel already owns the characters)

That's incorrect. The 2011 deal where Disney bought Sony's 25% merchandise rights also removed any royalties Sony had to pay Disney. The amended contract actually specified that Disney must pay Sony a fee for each movie (3.5% up to 35MM per movie with a ceiling of a certain amount over a certain period of time IIRC).

I can link you to the 2011 contract and that's the last publicly leaked deal, we don't have access to what changed in 2015. We know the fee Disney has to pay changed (it's lower than 3.5% if the movie grosses over 750MM, though unsure if it's flat or progressive). We also know from the 2011 contract that Peter Porker could not be used by Sony unless Disney approved, so that part was amended as well.

You are right that there's no anti trust on SM licensing rights reverting to Marvel.
 

bartholomr4

Well-Known Member
I see. But there's no guarantee that is the case with Hulu. If 80% is all it took I think Disney would have forced Hearst to sell their 20% equity of ESPN a long time ago.

You are right, no guarrantee, and Disney may want to get Comcast to pony up its portion of the losses.

If you look at what happened with Disney and Euro Disney and how they finally bought out the European investors (basically let Disneyland Paris wither on the vine, and then buy out the minority for penny’s on the dollar), you can also see another example of what Disney has done in the past.
 

bartholomr4

Well-Known Member
That's incorrect. The 2011 deal where Disney bought Sony's 25% merchandise rights also removed any royalties Sony had to pay Disney. The amended contract actually specified that Disney must pay Sony a fee for each movie (3.5% up to 35MM per movie with a ceiling of a certain amount over a certain period of time IIRC).

I can link you to the 2011 contract and that's the last publicly leaked deal, we don't have access to what changed in 2015. We know the fee Disney has to pay changed (it's lower than 3.5% if the movie grosses over 750MM, though unsure if it's flat or progressive). We also know from the 2011 contract that Peter Porker could not be used by Sony unless Disney approved, so that part was amended as well.

You are right that there's no anti trust on SM licensing rights reverting to Marvel.

I stand corrected... I should have said, based on this 2011 agreement, Disney gets consideration when a movie is made and distributed by getting all (or almost all) of the merchandising rights associated with the movie.....and there are various fees paid and exchanged. My main point was the acquistion of Sony pictures is different than reacquiring all of the rights Sony has to Mavel / MCA Characters.
 

Darkprime

Well-Known Member
Actually Sony gets all the money from the Spiderman movies but nothing from the merchandising. That change was made in their last update. However, as long as Sony wants to keep letting Marvel Produce and write the Spiderman movies Spiderman can be used by Marvel in the MCU. However those rights are solely owned by Sony and Marvel can't use Spiderman if Sony decides to write and produce their own movies. The only money Marvel gets right now is their contract for producing it.

Marvel continues to get all the money from Avengers movies or team up movies that feature Spider-Man iirc. Sony gets nothing from Infinity War, End Game or Civil War. But then Marvel gets nothing from Homecoming or Far From Home. So in the end it works I guess. But it must sting not getting anything from the standalone films. Sony is basically making money from Feige and his teams work (and gets to use the Marvel Studios brand) and thats kinda disgusting but it shows how Feige was willing to do whats best for the character and did anything to get him into the MCU.
 

AnotherDayAnotherDollar

Well-Known Member
You are right, no guarrantee, and Disney may want to get Comcast to pony up its portion of the losses.

If you look at what happened with Disney and Euro Disney and how they finally bought out the European investors (basically let Disneyland Paris wither on the vine, and then buy out the minority for penny’s on the dollar), you can also see another example of what Disney has done in the past.

They had to get to 95% ownership there to force a buyout though. I remember that very clearly.
 

HauntedMansionFLA

Well-Known Member
Disney should not be allowed to buy another studio. I do make an exception on buying part of Sony. I believe the justice department would allow them to buy the movie rights for Spiderman and family back from Sony. Disney/Fox will end this year with over 40% of the Noth American movie box office and could actually hit 50% if all their movies hit.
You are correct on Disney shouldn’t be allowed to buy another studio. Maybe they can buy another big IP. I’ve always wanted Peanuts to join the Disney family.
 

brodie999

Active Member
So In a few years once Disney recovers financially from buying Fox do you think they'll look at buying someone else? Maybe Sony? If someone else doesn't? By then Amazon, Netflix and Apple should be able to compensate for all the media consolidation.
I agree. I think they should buy Sony. Their partnership with Disney/Marvel on the MCU Spider-Man movies have been going well so far. And also, they haven't been doing well other than their video game division. So I think their assets would be a nice addition to Disney's brand. Especially since Sony Interactive Entertainment would allow the House of Mouse to make video games again.
 
I agree. I think they should buy Sony. Their partnership with Disney/Marvel on the MCU Spider-Man movies have been going well so far. And also, they haven't been doing well other than their video game division. So I think their assets would be a nice addition to Disney's brand. Especially since Sony Interactive Entertainment would allow the House of Mouse to make video games again.
US DOJ might be okay, but for foreign regulators it might be fishy.
 
The international approval process probably wouldn't be as lengthy as it was with Fox Sony doesn't have that much of a global presence they're really only prominent in U.S and Japan.
Well When Cofece Mexico approved in it areas that it looks over, they objected to the fact that of a Combined Sony/Disney/Fox film distribution would be in place, so Disney had to divest the Sony film distribution partnership in order for the part of the deal in Mexico to go through.
At a second stage, in January 2019, to eliminate any possible risk to competition in the market for film distribution in movie theaters resulting from the transaction, the parties modified the merger which was initially notified. Parties now included the cession of Disney’s participation in the share capital of Walt Disney Studios Sony Pictures Releasing de México (WDSSPR) in favor of Sony Pictures Releasing International Corporation (Sony Pictures).
 

erasure fan1

Well-Known Member
Especially since Sony Interactive Entertainment would allow the House of Mouse to make video games again.
I'm not a Playstation guy but if Disney ever took over Sony interactive, I would give it 1 to 2 years before they either shut it down or sold off the Playstation brand. If Disney cared at all about the video game space, they would not have shuttered LucasArts and then farmed out star wars to the single most incompetent developer around in EA. It's funny that Disney is so bent on Disney+ and how that's where the money is. Except video games do more money than any other entertainment product , by far.
 

Darkprime

Well-Known Member
I'm not a Playstation guy but if Disney ever took over Sony interactive, I would give it 1 to 2 years before they either shut it down or sold off the Playstation brand. If Disney cared at all about the video game space, they would not have shuttered LucasArts and then farmed out star wars to the single most incompetent developer around in EA. It's funny that Disney is so bent on Disney+ and how that's where the money is. Except video games do more money than any other entertainment product , by far.

Disney wouldn't buy all of Sony probably just Sony pictures.
 

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