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

bartholomr4

bartholomr4

Well-Known Member
Disney Extends Debt Exchange by One Day (New date March 15, 2019) SEC.GOV

On March 8, 2019, The Walt Disney Company (the “Company”) announced the extension of the expiration date of the offers to exchange (the “Exchange Offers”) any and all outstanding notes (the “21CFA Notes”) issued by 21st Century Fox America, Inc. (“21CFA”), a wholly-owned subsidiary of Twenty-First Century Fox, Inc. (“21CF”), for up to $18,128,740,000 aggregate principal amount of new notes to be issued by TWDC Holdco 613 Corp. (“New Disney”) and cash and the related consent solicitations (the “Consent Solicitations”) being made by New Disney on behalf of 21CFA to adopt certain proposed amendments to the indentures governing the 21CFA Notes. New Disney extended such expiration date from 5:00 p.m., New York City time, on March 14, 2019, to 5:00 p.m., New York City time, on March 15, 2019 (as the same may be further extended, the “Expiration Date”).
 
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Darkprime

Well-Known Member
So what would be the reason for the short delay? Are they trying to find the best day to close? So that would mean closing on the 18th?
 
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bartholomr4

bartholomr4

Well-Known Member
Darkprime said:
So what would be the reason for the short delay? Are they trying to find the best day to close? So that would mean closing on the 18th?
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They have been moving the dates about every two weeks since late last year.... The fact they moved it one day, makes me think they are really close..... Disney can't exchange its debt for 21CF debt until it owns the company, so I would assume the closing will be complete by the 15th (either on or before it).....
 
Slpy3270

Slpy3270

Well-Known Member
Hate to be a spoiler here but Mexico President Lopez-Obrador has publicly backed Televisa in their challenge against COFECE's approval of the merger. From Forbes Mexico (Google translated, so not entirely accurate):

The president Andrés Manuel López Obrador talked about a new account on the performance of the Federal Competition Commission (Cofece) in the case of the merger of the Disney and Fox companies, considering that its owner, Alejandra Palacios Prieto, "did wrong" and He reiterated that he disagreed with the authorization given to the companies that would have repercussions on the sports pay channels .

"I think he did wrong because he should not act in that way, but I understand that the affected party has already filed a complaint and it is going to be resolved legally (...) It should not have been expressed that way (...) Here we talked about not being according to which the authorization for the Disney merger with Fox will be signed for football, "the president said at his morning conference at the National Palace.

López Obrador emphasized that in other parts of the world this merger was not approved, as in the United States, Brazil and Europe, and although he said that Cofece is an autonomous entity, as a government it has the right to point out what it considers could affect to Mexicans

"I do not think that applies in our country, because how are they going to leave people without the possibility of watching football, that would be the last straw, of course they are independent, they are autonomous, but we have the right to point out certain things, we have to protect to the consumer, "he said.
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First off A) the merger was approved in those countries, just with divestitures, B) has he read the reports that Disney was willing to sell the Fox sports channels off (and for that matter, has Televisa?), or is that not enough for him?, and C) the fact that he's casting doubt on the legitimacy of his own government branches is kinda terrifying. I get that Mexico's government has been tainted for a long time but he's really not helping here with these kind of statements.

It makes me wonder if IFT is considering these presidential statements when they're reviewing the deal. Do they risk getting attacked by Televisa and Mexico's president should they let the deal go ahead? Or are they going to try to appease them to keep him from meddling with their affairs?
 
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Darkprime

Well-Known Member
I wouldnt worry just yet. Is it possible thats an old interview? Anyway. Remember CADE raised issues as well but eventually came around.

Few ? Worst case scenario. Can they close without Mexico approval? Or can IFT approve and at least delay the challenge allowing Disney to close? Surely they won't let one last approval hold things up?
 
Lafayettecalboy

Lafayettecalboy

Member
Slpy3270 said:
It was this morning.

I still think the deal gets approved with conditions on Monday, but I can't rule out the possibility of a black swan.
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Well actually Televisa has not asked for a suspension and the challenge is only against Cofece and goes until May when it's like a month or so after the deal closes. BTW Disney pledge to divest Fox Sports in Mexico, which was Obrador concerns in Mexico.
 

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