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

[Sirwalterraleigh]

The rumor this morning on CNBC is comcast is trying to get a third party tech company to join them in the Fox bid. If that is true it's over and Disney won because if a tech company were interested they would buy Fox themselves. Google, Apple and Amazon could buy Fox with their petty cash if they wanted.

I’ve seen “that’s too much debt” in this back and forth at least a hundred times...

The problem is that the species involved here is the cro magnon humanoid...and they have consistently shown they DONT CARE...against their own self interest.

So all the “mismanagement” and “board malfeasance” stuff is really pro disney thought...if you want fox - which honestly I don’t know if it’s a good thing. They don’t have strong IP overall...and Disney dabbled in sports earlier and even the safe bet rsns may become problematic...

I think honestly you’d get
More traction about too much if dolphins and manatees were negotiating...they are more sensible.

 

[Rodan75]

Have a link?

https://www.cnbc.com/video/2018/06/...me-down-to-whats-bigger-says-nyts-ed-lee.html

Sounds like it could just be speculation.

 

[Sirwalterraleigh]

You gotta take this analysis with a grain of salt...it is CNBC....but these analysts have been pretty common sense over the years.

The video paints a simple layman’s term description of where the players are at...and ultimately what they think will happen to content companies...

It also seems clear Comcast is going to bleed this out...even if it means “winning the deal” but then maybe killing it? At a minimum...they’ll drive the price north...I’d say at least one more round.

https://www.cnbc.com/video/2018/06/...ox-assets-more-than-comcast-says-analyst.html

 

[Stripes]

The rumor this morning on CNBC is comcast is trying to get a third party tech company to join them in the Fox bid. If that is true it's over and Disney won because if a tech company were interested they would buy Fox themselves. Google, Apple and Amazon could buy Fox with their petty cash if they wanted.

Those companies are not interested in buying big studios. Many have already said so. It just doesn't make sense for them for a whole host of reasons.

 

[Rodan75]

Those companies are not interested in buying big studios. Many have already said so. It just doesn't make sense for them for a whole host of reasons.

And they are seeing a lot of success in just building what they need, in regard to original content. They all know the studios will license old content because they need the revenue.

 

[Stripes]

If Comcast bids $90 billion cash, then the whole board should be ousted.

As an aside, I really don't see why Roberts is unwilling to bid stock. His family's stake is undilutable in voting power (B shares control 33.3% of Comcast's voting power no matter how many A shares there are; the A share class controls the remaining 66.7% regardless of share count).

Comcast should just step away if they insist on sticking to all-cash; there's no rationale for an all-cash bid at these prices. Comcast would approach $240 billion in total debt if they acquired Fox and Sky at those levels. That's just malpractice.

Personally, Roberts has nothing to lose by issuing stock, but shareholders would be ticked, and that would bring the stock down significantly.

 

[Stripes]

I'm sure those that have been following this heavily have already dissected this, but for others, here's the transcript from the $71 billion bid conference call.
https://www.thewaltdisneycompany.co...018/06/investor-call-transcript-2018-0620.pdf

 

[MisterPenguin]

I'm sure those that have been following this heavily have already dissected this, but for others, here's the transcript from the $71 billion bid conference call.
https://www.thewaltdisneycompany.co...018/06/investor-call-transcript-2018-0620.pdf

Interesting... Iger says that their current deal with Fox precludes breaking up the Fox package for sale and splitting it with Comcast.

So, let's put all that speculation to bed. It's winner-take-all.

Also interesting... Iger specifically calls out P&R as not going to suffer any lack of reinvestment in order to make this happen. They'll use their balance sheet strategically (IOW, borrow) to make both the purchase and the continuing reinvestment happen.

 

[HauntedMansionFLA]

Interesting... Iger says that their current deal with Fox precludes breaking up the Fox package for sale and splitting it with Comcast.

So, let's put all that speculation to bed. It's winner-take-all.

Also interesting... Iger specifically calls out P&R as not going to suffer investment in order to make this happen. They'll use their balance sheet strategically (IOW, borrow) to make the purchase and continued reinvestment happen.

When will the smoke clear and we have a winner?? It’s been fun reading the posts hear on this thread.

 

[ToTBellHop]

Interesting... Iger says that their current deal with Fox precludes breaking up the Fox package for sale and splitting it with Comcast.

So, let's put all that speculation to bed. It's winner-take-all.

Also interesting... Iger specifically calls out P&R as not going to suffer investment in order to make this happen. They'll use their balance sheet strategically (IOW, borrow) to make the purchase and continued reinvestment happen.

And this is America. CEOs never lie here.

They are already making P&R adjustments.

 

[Sirwalterraleigh]

And this is America. CEOs never lie here.

They are already making P&R adjustments.

It shocks me everytime someone believes what a billionaire says...misdirection is the one character trait they have to have. They don’t survive without it.

All of the WDW projects have been cut under iger with the exception of Star Wars - that we know of - and that one is a clone development so it doesn’t make sense to cut unless under financial strain.

Trust the shovels...which we have a lot to watch unfold...never trust the rhetoric.

 

[MisterPenguin]

And this is America. CEOs never lie here.

They are already making P&R adjustments.

Yeah, but weren't they consistently doing that before Fox went up for sale?

 

[Stripes]

Interesting... Iger says that their current deal with Fox precludes breaking up the Fox package for sale and splitting it with Comcast.

So, let's put all that speculation to bed. It's winner-take-all.

Also interesting... Iger specifically calls out P&R as not going to suffer any lack of reinvestment in order to make this happen. They'll use their balance sheet strategically (IOW, borrow) to make both the purchase and the continuing reinvestment happen.

Just to clarify, Christine McCarthy, Disney's CFO, made that comment about P&R, not Iger.

 

[smile]

All of the WDW projects have been cut under iger with the exception of Star Wars

yep, just a smidge tho...
land stuff that may or may not appear in a hotel.

but there's tightness... when not? too many times, both ways.

 

[ToTBellHop]

Yeah, but weren't they consistently doing that before Fox went up for sale?

My understanding is that there are discussions of fat that would be trimmed specifically for this.

 

[Stripes]

My understanding is that there are discussions of fat that would be trimmed specifically for this.

"Fat" meaning temporary cuts to operations, or cancelled investments in new attractions?

 

[ToTBellHop]

"Fat" meaning temporary cuts to operations, or cancelled investments in new attractions?

Both. Of course.

But Hugh Jackman will be in the Avengers 5, so no harm done?

 

[pdude81]

Both. Of course.

But Hugh Jackman will be in the Avengers 5, so no harm done?

And there goes several million more dollars

 

[MisterPenguin]

Both. Of course.

But Hugh Jackman will be in the Avengers 5, so no harm done?

Not if there's a Hugh Jackman M&G!

 

[Sirwalterraleigh]

"Fat" meaning temporary cuts to operations, or cancelled investments in new attractions?

Hard to say...but anyone trusting the comments of a CEO superficially doesn’t appear to be a student of history