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

[bartholomr4]

I think Disney is very much aware of that and is prepared for whatever PR headache comes.

I would suspect the Movie and Production Talent are safer than you might think.... I think it’s the employees who are duplicate (Accountants, Computer Techs, Human Resources, etc.) that are at the greatest risk. Fox (with Disney’s encouragement) has been paying retention bonuses for employee’s to stay, because if you aren’t careful, you can loose more employee’s than you want.....

I believe the statements, around regulation preventing the two companies from sharing confidential information until now..... I suspect it will take a while to make the decisions around systems, processes, duplication, and then determine which employees to keep and which to let go.... I would bet, 6 months to a year to make all of those decisions.

There are also local and state laws around layoffs of large numbers of employee’s which make it more expensive to do mass layoffs. With a company this large, they probably have turn-over in the range of 7 to 10% a year, which may make the transition easier. Disney will probably get calls for their talent, and I would also expect they will assist their employees with outplacement and job finding consulting firms.

 

[Rodan75]

Surprising yet not too shocking. Fox 2000 was basically Searchlight-lite, and having more than two Fox-branded divisions would've made no strategic sense.

Still puts a shadow over Fox Family Entertainment, though, which I presume will be absorbed into Disney's own family units. That being said, I still expect Blue Sky to hang around.

Speaking of, 20th Television's president Greg Meidel has also been released, certainly meaning that 20th Television will be absorbed into Disney-ABC Domestic Television.

Fox Television President Greg Meidel Out As Disney-Fox Layoffs Continue

Another top Fox executive is leaving in the first wave of layoffs following the completion of the Disney-Fox deal. Greg Meidel, president of Twentieth Television, is out. He is the first high-level TV departure post-merger. The distribution operations of Disney and Fox were expected to be...

deadline.com

UPDATE: Fox consumer products chief also released, meaning Fox's consumer products unit will be absorbed into Disney Parks, Experiences and Products. A real shame, since he had only been on the job for about a year and a half (he left DreamWorks Animation after Universal took control of the studio).

Fox Consumer Products Chief Jim Fielding Joins Post-Disney-Deal Layoff List

Fox consumer products chief Jim Fielding is one of the senior executives who will be exiting the company in the wake of Disney's Fox deal.

deadline.com

Keep in mind that these folks may have chosen to not accept new roles. Not every loss that comes up will be because Disney wanted to get rid of talent.

 

[BrianLo]

Things happen, such as the Spider-Man deal killing Inhumans (though their use in the SHIELD tv show also contributed).

Ike Perlmutter was the one who petulantly killed off the Inhumans, for now.

 

[Darkprime]

Ike Perlmutter was the one who petulantly killed off the Inhumans, for now.

Don't think that's right. Ike was the one who wanted inhumans (Because they didn't have xmen). He forced Feige to put it on the slate in exchange for green lighting black panther and captain marvel after Ike blocked them for years because he didn't think a movie with a female lead or person of colour would sell toys this is what caused marvel studios to split from marvel entertainment in 2015. Feige nearly quit over it And Iger had to step in he made it so that Feige reported directly to Horn and himself.

Bypassing ike however this pretty much destroyed the relationship the film division had with the tv side. Remember how the 1st 2 seasons of agents of shield had cameos from Nick Fury and lady sif? Notice how those stopped soon after and they dropped the whole it's all connected thing? This is why.

 

[Lucky Rabbit]

Ike Perlmutter was the one who petulantly killed off the Inhumans, for now.

Originally Inhumans was going to be an MCU movie. Vin Diesel was lobbying hard to be Black Bolt. Ike could only destroy them because Feige passed.

Supposedly when Agents of Shield tv show started incorporating Inhumans as a race (not the royal family that the movie was going to be about), Studios wasn’t happy and the movie got pushed to the back burner.

When the Spider-Man deal happened everything got pushed back, and Inhumans taken off the schedule completely. Then the tv show happened. The only way we see any form of Inhumans on the big screen is if they don’t want to alter Ms. Marvel’s (Kamala Kahn) origin when she pops up in a Captain Marvel sequel.

 

[Lucky Rabbit]

Don't think that's right. Ike was the one who wanted inhumans (Because they didn't have xmen). He forced Feige to put it on the slate in exchange for green lighting black panther and captain marvel after Ike blocked them for years because he didn't think a movie with a female lead or person of colour would sell toys this is what caused marvel studios to split from marvel entertainment in 2015. Feige nearly quit over it And Iger had to step in he made it so that Feige reported directly to Horn and himself.

Bypassing ike however this pretty much destroyed the relationship the film division had with the tv side. Remember how the 1st 2 seasons of agents of shield had cameos from Nick Fury and lady sif? Notice how those stopped soon after and they dropped the whole it's all connected thing? This is why.

That makes sense. I know I’ve read the reason the TV and movie sides don’t link up is because Feige doesn’t like Ike. I was unaware Feige didn’t want Inhumans in general.

Wasn’t Ike the guy who wouldn’t let the villain be a female in Iron Man 3 because of toy sales?

 

[Darkprime]

That makes sense. I know I’ve read the reason the TV and movie sides don’t link up is because Feige doesn’t like Ike. I was unaware Feige didn’t want Inhumans in general.

Wasn’t Ike the guy who wouldn’t let the villain be a female in Iron Man 3 because of toy sales?

Yep that's the one.

FYI you can read about it all here.

Marvel Shake-Up: Film Chief Kevin Feige Breaks Free of CEO Ike Perlmutter (Exclusive)

After Feige's "years of frustration," the studio's movie group will now report to Disney's Alan Horn.

www.hollywoodreporter.com

 

[BrianLo]

Don't think that's right. Ike was the one who wanted inhumans (Because they didn't have xmen). He forced Feige to put it on the slate in exchange for green lighting black panther and captain marvel after Ike blocked them for years because he didn't think a movie with a female lead or person of colour would sell toys this is what caused marvel studios to split from marvel entertainment in 2015. Feige nearly quit over it And Iger had to step in he made it so that Feige reported directly to Horn and himself.

Bypassing ike however this pretty much destroyed the relationship the film division had with the tv side. Remember how the 1st 2 seasons of agents of shield had cameos from Nick Fury and lady sif? Notice how those stopped soon after and they dropped the whole it's all connected thing? This is why.

Originally Inhumans was going to be an MCU movie. Vin Diesel was lobbying hard to be Black Bolt. Ike could only destroy them because Feige passed.

Supposedly when Agents of Shield tv show started incorporating Inhumans as a race (not the royal family that the movie was going to be about), Studios wasn’t happy and the movie got pushed to the back burner.

When the Spider-Man deal happened everything got pushed back, and Inhumans taken off the schedule completely. Then the tv show happened. The only way we see any form of Inhumans on the big screen is if they don’t want to alter Ms. Marvel’s (Kamala Kahn) origin when she pops up in a Captain Marvel sequel.

Sorry, I worded that incorrectly. I didn't mean Ike wanted to kill Inhumans. I meant his petulance was what ultimately lead to everything that has now indirectly killed inhumans. The stink from the TV show is way too strong for the moment.

I can't believe they let Scott Buck have a second franchise.

 

[Darkprime]

Fox Layoffs Leave Staffers Stunned and Saddened

Fox employees knew this day was coming for over a year, but job cuts hit hard and fast with layoffs across the film division.

variety.com

 

[Rodan75]

Fox Layoffs Leave Staffers Stunned and Saddened

Fox employees knew this day was coming for over a year, but job cuts hit hard and fast with layoffs across the film division.

variety.com

The breathless was the entertainment press is fauning over these separations is ridiculous. Those announced today are not surprises to those impacted. They have likely know for weeks/months, and may have been offered new positions that they rejected.

The entertainment press obviously has little understanding of how these integrations work and could use more ppl experienced in business journalism.

 

[Twilight_Roxas]

I still hope the shows are still set in the MCU.

 

[brodie999]

Yep that's the one.

FYI you can read about it all here.

Marvel Shake-Up: Film Chief Kevin Feige Breaks Free of CEO Ike Perlmutter (Exclusive)

After Feige's "years of frustration," the studio's movie group will now report to Disney's Alan Horn.

www.hollywoodreporter.com

If he broke free of Perlmutter much sooner and started the MCU without his interference, some films like The Dark World, Age of Ultron and Iron Man 2 would've been much more positively received and had plots, characterisations and storylines that made more sense than what we got now. Marvel Studios should've always been in charge in their own.

 

[Lafayettecalboy]

Apparently, according to a person at superherohype forum, they just filed for approval in Argentina and its explained below:

Oh btw should anyone be still tracking. DIS has just filed for approval in Argentina. It turns out that country still uses the process merger notification is filed after completion. It’s a strange world.

The Rebooted "Keep Hope Alive" (that the rights can revert back to Marvel) Thread - - - - - - - - - - - - - - - Part 24

I suspect what is grinding the gears of those tweeting some shade at us all is that we fans are quite naturally happy about this. If Comcast had bought Fox no-one would have been celebrating it as we are with Disney. They might comment on the layoffs, sad news, etc, but that would be it as there...

forums.superherohype.com

 

[Darkprime]

Apparently, according to a person at superherohype forum, they just filed for approval in Argentina and its explained below:

The Rebooted "Keep Hope Alive" (that the rights can revert back to Marvel) Thread - - - - - - - - - - - - - - - Part 24

I suspect what is grinding the gears of those tweeting some shade at us all is that we fans are quite naturally happy about this. If Comcast had bought Fox no-one would have been celebrating it as we are with Disney. They might comment on the layoffs, sad news, etc, but that would be it as there...

forums.superherohype.com

The deals closed it doesn't matter.

 

[Indy_UK]

Eek, seems some major layoffs.

I'm sure Disney have spent a lot of time assessing what fat needs cutting from this merger over the last year. Hopefully Disney doesn't cut and close so much so there's not much left.

I also guess it's best to do it all ASAP rather than run bloated for several years and see what happens.

How many people were part of the merger if they are looking to lay off between 4000-10,000 people

 

[bartholomr4]

Eek, seems some major layoffs.

I'm sure Disney have spent a lot of time assessing what fat needs cutting from this merger over the last year. Hopefully Disney doesn't cut and close so much so there's not much left.

I also guess it's best to do it all ASAP rather than run bloated for several years and see what happens.

How many people were part of the merger if they are looking to lay off between 4000-10,000 people

At the end of 2018, 21CF had 22,400 employees per their 10K (www.sec.gov). There isn't a definative count in any of the merger documents I have seen, but there is a reference to 3,815 employees at 21CF Studios (Its not clear in that reference if that is the global studio or just the part of the studio which uses that brand... it could exclude fox light, fox 2000, etc). If 1/3rd of the employee's stayed with the new FOX, then you have about 14,750ish employees which transferred to Disney(my estimate).

 

[seascape]

Eek, seems some major layoffs.

I'm sure Disney have spent a lot of time assessing what fat needs cutting from this merger over the last year. Hopefully Disney doesn't cut and close so much so there's not much left.

I also guess it's best to do it all ASAP rather than run bloated for several years and see what happens.

How many people were part of the merger if they are looking to lay off between 4000-10,000 people

If Disney's goal is $2 billion in cost savings and synergies the layoffs will be closer to 4,000. Some of the synergies are from the couple percent increase in the Fox box office. That should be anywhere from $20million to $100million, based on a $1billion North America. Adding international would likely double that. Then there is office space, payroll taxes, medical insurance and other overhead. Many people have no idea how much it costs for each employee besides there salary.

The 10,000 number was only based on an average salary of $200,000. Layoffs of 4,000 are much more likely with a savings of $500,000 per employee. I wonder what the international travel cost, including first class airfare, hotels, food and entertainment, etc.. for the international distribution costs were for the 2 companies that can now be cut almost in half.

The more I think about all the costs that can be cut without layoffs and the extra money from the box office saving $2billion is easy without paying off 4,000. I also think that after the merger is complete the Fox employees will be very happy with their free admission to Disneyland. That is a huge benefit and major savings for them and their family.

 

[bartholomr4]

If Disney's goal is $2 billion in cost savings and synergies the layoffs will be closer to 4,000. Some of the synergies are from the couple percent increase in the Fox box office. That should be anywhere from $20million to $100million, based on a $1billion North America. Adding international would likely double that. Then there is office space, payroll taxes, medical insurance and other overhead. Many people have no idea how much it costs for each employee besides there salary.

The 10,000 number was only based on an average salary of $200,000. Layoffs of 4,000 are much more likely with a savings of $500,000 per employee. I wonder what the international travel cost, including first class airfare, hotels, food and entertainment, etc.. for the international distribution costs were for the 2 companies that can now be cut almost in half.

The more I think about all the costs that can be cut without layoffs and the extra money from the box office saving $2billion is easy without paying off 4,000. I also think that after the merger is complete the Fox employees will be very happy with their free admission to Disneyland. That is a huge benefit and major savings for them and their family.

I would agree with your hypothesis, with the exception of including any increase in the box office being part of their calculation. Based on the merger announcement, the synergies are cost savings only. Fully Loaded costs for the AVERAGE employee are probably closer to $100,000, with Salary being $80,000 and benefits $20,000. I think the larger savings are in the duplicate computer systems, real-estate, and support personnel. Professional Services (legal, consultants, support services) are also likely to consolidate down to one vendor instead of two. The Supply Chain Personnel are probably being charged with finding a huge chunk of the funds. Lastly, there will likely be some balance sheet management which will result based on applying Disney's superior credit costs (lower interest rates) to the 21CF Debt.

 

[bartholomr4]

If Disney's goal is $2 billion in cost savings and synergies the layoffs will be closer to 4,000. Some of the synergies are from the couple percent increase in the Fox box office. That should be anywhere from $20million to $100million, based on a $1billion North America. Adding international would likely double that. Then there is office space, payroll taxes, medical insurance and other overhead. Many people have no idea how much it costs for each employee besides there salary.

The 10,000 number was only based on an average salary of $200,000. Layoffs of 4,000 are much more likely with a savings of $500,000 per employee. I wonder what the international travel cost, including first class airfare, hotels, food and entertainment, etc.. for the international distribution costs were for the 2 companies that can now be cut almost in half.

The more I think about all the costs that can be cut without layoffs and the extra money from the box office saving $2billion is easy without paying off 4,000. I also think that after the merger is complete the Fox employees will be very happy with their free admission to Disneyland. That is a huge benefit and major savings for them and their family.

From the Hollywood Reporter: https://www.hollywoodreporter.com/news/as-layoffs-arrive-disney-fox-staff-voice-frustrations-1196346

Part of the frustration, multiple employees tell The Hollywood Reporter, is that Disney has been less than forthcoming about who will be let go and when, and what their separation packages will look like, though some with more knowledge of the situation say that some employees will be getting up to 24 months of severance.

Says one Disney employee: "We feel like we're the ones who have been acquired because the people at Fox know what their severance packages are, if they are going to get let go, and nobody at Disney knows anything. People are panicking — and rightfully so — because nobody is telling them anything."

Indeed, Disney hasn't disclosed the number of jobs that would be lost — and that has yet to change. Analysts estimate 4,000-10,000, though several employees say the number being floated amongst people in the know is closer to 3,000.

 

[capsshield]

Sorry but marvels movie slat is not locked in or even announced. I agree that all the projects you mention are highly likely, but they have known this move was coming for a long time. I don't think they are even filming anything yet.
You also fail to add in any of the slots fox had booked.
Let's wait until San Diego and D23 before we pretend to know what's coming.
Really great speculation though.