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

[happycamperuni]

Sounds like investors are happy for all media companies today.

Fox up huge, Disney and TimeWarner both up strongly as well.

Even Comcast is up... which normally wouldn't happen when you're expecting a massive debt fueled takeover to launch in the next 24 hours.

Investors think the whole sector is a buy right now given that AT&T won the TW merger without conditions.

 

[AnotherDayAnotherDollar]

https://seekingalpha.com/news/33637...fox-assets-setting-disney-war?dr=1#email_link

It's a total bid of $65B, $35/share in cash, a premium of about 19% to Disney's offer.

 

[AnotherDayAnotherDollar]

Comcast is also offering to pay the 1.525B termination fee + 2.5B breakup fee if it's blocked by regulators for a total 4.025B on top of the 65B offered to 21CF.

 

[invader]

https://www.wsj.com/articles/comcast-bids-roughly-65-billion-for-fox-1528920230

 

[AnotherDayAnotherDollar]

It's annoying that my posts with URL links have to wait for moderator approval.

Regardless, it's a great bid. 65B + assumption of debt + 2.5B guarantee if regulators block it + 1.525B to pay Disney if Fox walks away.

I don't think Disney will come up with a better bid.

 

[the.dreamfinder]

Man things are heating up out there.

 

[Rodan75]

It will be interesting to see where things go from here. But Comcast has started a war...

I'm not sure Fox has anything really worth all of this insanity...

 

[Rodan75]

Man things are heating up out there.

LOL...Love it.

 

[Twilight_Roxas]

Comcast should be using that money to fix there problems not trying to steal assets.

 

[Indy_UK]

I can’t see Disney wanting a war and fighting this. They may stick one final bid in but I think that will be it.

If Disney don’t get Fox then queue the Disney geeks complaining why TWDC isn’t using that to invest more in the parks instead lol

 

[Twilight_Roxas]

If Disney loses then I lose all hope to them.

 

[Dunston]

Comcast should be using that money to fix there problems not trying to steal assets.

Lol what problems? They just won the battle over Net Neutrality, building a million dollar new building in Philly, and are dabbing on the haters

 

[Twilight_Roxas]

Lol what problems? They just won the battle over Net Neutrality, building a million dollar new building in Philly, and are dabbing on the haters

Lets see they keep dropping there internet connection on purpose, harass there costumers who want to cancel, and violating lots of laws to the point they would be bankrupt.

 

[Dunston]

Lets see they keep dropping there internet connection on purpose, harass there costumers who want to cancel, and violating lots of laws to the point they would be bankrupt.

I'm not saying I agree with them, but they're not going anywhere, man.

As for this acquisition nonsense, you can thank Mitch McConnell for all this.

 

[Sirwalterraleigh]

Comcast should be using that money to fix there problems not trying to steal assets.

No such thing as stealing once you don’t actually need it anymore.

Need I give you the OBVIOUS daily example of it?

 

[Sirwalterraleigh]

Lol what problems? They just won the battle over Net Neutrality, building a million dollar new building in Philly, and are dabbing on the haters

Exactly...I have a couple of VPs across town that have horses more valuable on their farm than what ran in the Belmont last week.

I know this is a Disney site...but this is koolaid to the max. Comcast isn’t in trouble

 

[happycamperuni]

Reason why Comcast is probably the favorite now is just because with cable at least being a short-term cash cow; they can afford to just pile cash onto any offer and then restrict their dividend growth to pay down debt for 5-6 years after the transaction.

And given that Comcast was a highly taxed business, with the tax cuts, their cash flow has increased by 40+% this year..., which enables them to carry much higher debt loads.

Comcast operating income is around $22-23 billion a year.

Disney operation income is around $15-16 billion a year.

For Comcast, adding an extra $5-10 billion in debt to any offer is not that difficult to overcome.

 

[AnotherDayAnotherDollar]

Twenty-First Century Fox (FOX, FOXA) has acknowledged receivingComcast's (NASDAQ:CMCSA) $65B offer for its media assets, and said it hasn't made a determination yet whether to postpone or adjourn a July 10 special meeting to vote on its similar $52.4B agreement with Disney (NYSE:DIS).

In accordance with its fiduciary duties, Fox's board says it will carefully review the new offer.

In more details from Comcast's offer: It's a little circumspect about Hulu, the streaming service it co-owns with Fox, Disney and Time Warner (NYSE:TWX). But sources say Comcast will divest Fox's stake in the service if that's what it takes to get the deal done, meaning it wouldn't take over majority control of Hulu.

https://seekingalpha.com/news/3363802-fox-acknowledges-comcast-offer-deal-details

 

[Sirwalterraleigh]

Sure seems like Disney is gonna lose this bigtime...

They pick up hasbro? A primarily toy company when toys are in trouble...

Video games? High cost/low yield.

Sony would be nice...don’t see it though.

Viacom or cbs...

 

[gmajew]

Disney losing this is a big hurt on their long term plans. This was really only about the catalogs so they could have the streaming. If Disney really believes this is needed for long term growth they may pony up. But it is a big big number to overcome.