Disney CFO says would look at Vivendi assets

[mkt]

Disney CFO says would look at Vivendi assets
Wednesday August 7, 5:40 PM EDT

LOS ANGELES (Reuters) -- Walt Disney Co. Chief Financial Officer Tom Staggs said on Wednesday the media giant would consider scooping up any assets of debt-riddled rival Vivendi Universal that are within Disney's core businesses.

"Any assets that are in our core business that come available, we would certainly take a look at," Staggs told Reuters when asked whether Disney might consider acquiring any Vivendi businesses.

He added, however, that it was hard to tell exactly how serious Disney, with its own theme parks, a movie studio and television networks, might be.

"Our primary focus is our core business. That we can augment it and do acquisitions that aren't dilutive to earnings or cash flow" Disney might be interested, he said.

Vivendi Universal, owner of Universal Studios, Universal Music Group and theme parks in Florida and Los Angeles, is currently looking to shed assets in order to pay down debt.

 

[pheneix]

How in the hell does Disney think they can find the funds to buy these assets? They probably could mount a purchase if they could negotiate the price to some astronomically low amount, but with Vivendi's current position, they would give a polite "NO!" and find somebody else.

Not only that, but the idea of Disney running Universal Orlando absolutely scares the living hell out of me.

 

[Lord Alfred]

Originally posted by pheneix
Not only that, but the idea of Disney running Universal Orlando absolutely scares the living hell out of me.

First off, I hope you're exaggerating for effect. Secondly, please explain why. I don't think it would be a good move either, really, but I'd like the reasons why it scares you so.

 

[pheneix]

>>>please explain why<<<

Let's see:

It's cleaner, they're adding (MAJOR) attractions as hard and as fast as they can, the employees are getting friendlier (probably because Universal tries to put some PRIDE into the resort), and it is being ran much better than Disney is now.

Do you honestly think Disney would allow this rising star to claim it's deserved glory? In all likeliness they would let it sit there and rot like SF did with Kentucky Kingdom.

 

[Disney4648]

Once again pheneix, you never say anything good about Disney. And if you think Disney has no funds....well then how did Disney and ABC sign a huge deal with AOL time Warner and HBO yesterday?



Disney has plenty of money, Vivendi Universal doesnt.:lol:

 

[pheneix]

>>>you never say anything good about Disney<<<

Probably because there isn't anything good to say about them right now.

>>>how did Disney and ABC sign a huge deal with AOL time Warner and HBO yesterday<<<

The cost of producing a a TV show isn't much at all. And Disney is going into deficit spending to produce these shows (at least they would if it were from ABC's revenues). That is not good at all.

>>>Disney has plenty of money, Vivendi Universal doesnt.<<<

Disney isn't as well off as you believe. OTH, tell me something I don't know about Vivendi's financial situation.

 

[Disney4648]

SO your saysing there isnt any good news for disney...?


Lets see here....

1. Disney just got a big deal with HBO to help ABC.
2. Disney's new show, the Anne Nichole(sp?) show had the best ratings.
3. Buyers are looking at Disneys 2 sports team which means money for disney.


So dont tell me there isnt any good news to say about Disney, do your research before you bad mouth disney.

 

[pheneix]

>>>Disney just got a big deal with HBO to help ABC.<<<

That could be good, but considering Disney took a pass on the Lord of the Rings, I don't think they will get much success off of this deal even if HBO kicks out some good shows.

>>>Disney's new show, the Anne Nichole(sp?) show had the best ratings.<<<

It'll die a very quick death (the show sucks ). Whoever checked this show out on it's debut just wanted to see what the fat (drugged) got herself into. Once the shock value wears off, so will the ratings.

>>>Buyers are looking at Disneys 2 sports team which means money for disney.<<<

It won't be nearly enough money. I'll be surprised if Disney even gets a tenth of what they are wanting to sell them for.

 

[TURKEY]

Originally posted by pheneix
>>>Disney just got a big deal with HBO to help ABC.<<<

That could be good, but considering Disney took a pass on the Lord of the Rings, I don't think they will get much success off of this deal even if HBO kicks out some good shows.

>>>Disney's new show, the Anne Nichole(sp?) show had the best ratings.<<<

It'll die a very quick death (the show sucks ). Whoever checked this show out on it's debut just wanted to see what the fat (drugged) got herself into. Once the shock value wears off, so will the ratings.

>>>Buyers are looking at Disneys 2 sports team which means money for disney.<<<

It won't be nearly enough money. I'll be surprised if Disney even gets a tenth of what they are wanting to sell them for.

I think the HBO deal will help some, but ABC can't count on that to bail them out (which they will probally depend on).

Anna Nichole had like 3 million viewers. The show is CRAP. It won't last too long. One thing the show has going for it is that it's airing in the summer with no new shows going. If it's still running by fall, the numbers will drop significantly.

Disney is looking at selling both sports teams for a loss.
However, the latest numbers I've seen are that the Angels are going to be close to breaking even. The team shouldn't get worse in the next few years. The team has a good chance to be good for several years to come.

The main problem with the Angels now is that they haven't drawn fans because the team has stunk. Now that they are playing better and more exciting baseball, the fans are coming out. If a strike takes place, I think Disney is going to be stuck with the team no matter what and that the losses are going to get much worse.

 

[Dizneydude87]

I wish Six Flags would hear about this, maybe they could buy it. I read somewhere that Universal is in debt, thats why they would consider selling. I think Six Flags would make it pretty cool. They ALWAYS are adding thrill rides. Look at SFOG, they have been building FOUR magor thrill rides in the past two years (De' Ja' Vu [Sp??], The one were you lie down, Agrophobia {the drop one}, and are planning/ maybe building an X type coaster). Just think about it, it could do good for Disney too. Since the opening of IOA, people have been flocking to it for thrills, thus making Disney get into the thrill market. If Six Flags buys Universal, we know they would add ALOT more thrills then Universal or Disney would, and Disney would have to add more just to keep up. Just my thoughts on this.

 

[WDW Imagineer]

Originally posted by Dizneydude87
I wish Six Flags would hear about this, maybe they could buy it. I read somewhere that Universal is in debt, thats why they would consider selling. I think Six Flags would make it pretty cool. They ALWAYS are adding thrill rides. Look at SFOG, they have been building FOUR magor thrill rides in the past two years (De' Ja' Vu [Sp??], The one were you lie down, Agrophobia {the drop one}, and are planning/ maybe building an X type coaster). Just think about it, it could do good for Disney too. Since the opening of IOA, people have been flocking to it for thrills, thus making Disney get into the thrill market. If Six Flags buys Universal, we know they would add ALOT more thrills then Universal or Disney would, and Disney would have to add more just to keep up. Just my thoughts on this.

Yes Six Flags may add thrill rides, but not of theem seem to be themed. Universal has been pretty good at this lately.

Personally I would like to see Anheiser Busch take over the parks, they all ready have Busch Gardens and Sea World it would be a good plus for them. I would like Disney to buy the assests to the movie studios, that may be what disney needs to boost it's film unit.

And to think that disney does not have cash reserves you are WRONG! if you want to talk about big money, they just payed over $5 billion for 1 stinkin' cable channel. Many might have thought that it was over priced by I guess disney didn't. They spent over 1 billion dollers each on their last few theme parks and that is just the begining.

 

[wdwmaniac]

I think Universal buy for Disney would be good. It would cost some money but they could have a huge theme park district in FL and CA. That would bring in some cash. Also if they took Universal they could add all the moveis they make to there collection. Six Flags wouldn'd buy Universal but Anihemer Bush might. Also the Muppets wouldn't really make a profit off the bat and be something to show for it. But I think Disney would be in the ball park for it, new themes parks more money, movies it would make Disney a Theme Park Monoploly, This would be a good buying point of Disney Stock. Anyway it porblaly will happen some day why not now one it Flordia going to be Disney World.

 

[NowInc]

What scares me more is that Blizzard Software is also owned by Vivendi...i wonder what'll happen to them...

...for those who dont know..blizzard is one of the biggest producers of video games today.....

 

[Lord Alfred]

Originally posted by NowInc
for those who dont know..blizzard is one of the biggest producers of video games today.....

I have to disagree with that statement. Blizzard is a great producer of COMPUTER games but certainly not console games. Also, their successful products are all either part of one series where all the names end in -Craft, or Diablo. That's it. And they do a great job of it, but overall, they are tiny in comparison to EA, Sega, Microsoft, or Nintendo.

Sorry about the topic drift.

 

[NowInc]

Originally posted by Lord Alfred



I have to disagree with that statement. Blizzard is a great producer of COMPUTER games but certainly not console games. Also, their successful products are all either part of one series where all the names end in -Craft, or Diablo. That's it. And they do a great job of it, but overall, they are tiny in comparison to EA, Sega, Microsoft, or Nintendo.

Sorry about the topic drift.

..yet every game they made has been a hit....im not arguing over the fact that they are a computer based company who generally stays away from consoles (even tho they do make console ports too)....but they are justifiably a HUGE producer of video games...who cares if they are all diablo or "craft" games....people buy them for good reason..they rock.

 

[Castle Cake Apologist]

You say universal has been getting good at building and theming thrill rides as though they design build and theme them themselves. Riiight. Give credit to the companies why actualy designed the rides. From what I've seen, universal designs very few of their rides and they wind up in trouble on a lot for it. (Jaws, Sylvester's Driving Machines, Pteradon Fliers...)

 

[pheneix]

>>>Give credit to the companies why actualy designed the rides.<<<

Fine, I'll start with giving credit to Arrow Dynamics for the amazing work they did with the Matterhorn, and I need to thank Intamin for their amazing job on the Jeeps used in Indiana Jones and Countdown to Extinction, and I should not forget to credit ETC for the fabulous job they are doing on Mission Space.

Justice works both ways.

 

[Lord Alfred]

Originally posted by NowInc



..yet every game they made has been a hit....but they are justifiably a HUGE producer of video games...

Look, I'm not saying that they don't make great games, they do, but they are not a "HUGE" producer of video games. The are a relatively small computer game company with a small, highly-successful product line. The sale of Blizzard to Microsoft or EA would ultimately have little effect on what they do or the industry in general.

 

[Castle Cake Apologist]

Originally posted by pheneix
>>>Give credit to the companies why actualy designed the rides.<<<

Fine, I'll start with giving credit to Arrow Dynamics for the amazing work they did with the Matterhorn, and I need to thank Intamin for their amazing job on the Jeeps used in Indiana Jones and Countdown to Extinction, and I should not forget to credit ETC for the fabulous job they are doing on Mission Space.

Justice works both ways.

Ah, but see... Disney designed those rides. An imagineer came up with the track layout and even the idea of using steel for the Matterhorn. Arrow just built it. WDI designed Indy and DINOSAUR (Proper names are always good ), the other company simply built the jeeps for them, BIG difference. The problem with your logic is that Disney designs their rides while universal pretty much buys everything they put into their parks out of a catalogue with a little bit of custom design.

 

[Castle Cake Apologist]

Besides... when the Matterhorn was built, Arrow Dynamics wasn't even a company. It was a bunch of boys who's parents owned an amusement park for which they built rides. Walt liked what he saw and hired them to BUILD (not design) the Matterhorn, which was what inspired them to form a company.