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Disney Talks to buy fox family
- Thread starter JAY-ROD
- Start date
figmentcrazy
Member
Okay, now I'm confused. They lay-off 4000 people from their park division quoting lower-than-expected revenue and yet they are able to purchase a TV network and construct a new resort... This may be a silly question, but did I miss something?
figmentcrazy
Member
That's what I thought... Thanks! 
sillyspook13
Well-Known Member
I just got a phone call: They did it! They bought Fox Family! It will now become ABC Family. I'm so happy that Disney is buying a decent company! (Go.com- 1 billion dollars down the drain)
WDWFanatic
Active Member
MrPromey
Well-Known Member
Seriously figmentcrazy, what they are doing may seem silly but the purchase of the network won't really be much in the way of immediate cash out of Disney's pocket and they can use profits made from the networks (assuming they can turn them around) to pay for their costs. Managed debt in a corporate sense is not always a bad thing. It's sounds strange but it's not the same when a large company is in debt for millions or billions as it is when you and I are in the hole for $20,000 on credit cards. It's more like a mortgage. You could buy a home with an $100,000 loan. You would be in debt because of that loan for decades but it's not looked at the same way revolving credit is.
As for the resort. The idea being that once it's built and running, it will pay for itself and then some. That's for the DVC anyway which has proven to be enormously successful. The fact that they are doing this when they Yacht and Beach club villas are not even complete yet would suggest that there is enough demand for this. Really if you think about it, the DVC would be sort of recession proof because all the people using the program have already committed to the long term. They are paying for the use of the resorts weather they choose to use them or not so chances are most people will use them. That's a lot more of a guarantee than the standard resort guests give Disney as far as a return on Disney's investment goes. From what I understand, guests won't even notice most of the people missing from the parks since they were mostly higher management in salaried positions anyway. Those kinds of layoffs effect the structure of how things are run - not so much the number of people there to help the guest. With the construction and acquisition, they are helping to grow the company to generate further profit. Having a bunch of people around that they believe they can do without has sort of the opposite effect.
As for the resort. The idea being that once it's built and running, it will pay for itself and then some. That's for the DVC anyway which has proven to be enormously successful. The fact that they are doing this when they Yacht and Beach club villas are not even complete yet would suggest that there is enough demand for this. Really if you think about it, the DVC would be sort of recession proof because all the people using the program have already committed to the long term. They are paying for the use of the resorts weather they choose to use them or not so chances are most people will use them. That's a lot more of a guarantee than the standard resort guests give Disney as far as a return on Disney's investment goes. From what I understand, guests won't even notice most of the people missing from the parks since they were mostly higher management in salaried positions anyway. Those kinds of layoffs effect the structure of how things are run - not so much the number of people there to help the guest. With the construction and acquisition, they are helping to grow the company to generate further profit. Having a bunch of people around that they believe they can do without has sort of the opposite effect.
StarscreamLSU
New Member
I just hope they move some of that ZOOG crap onto the new channel. I mean, I like some of the shows (mostly Even Stevens), but I hate that the good stuff, like Vault Disney and the old Disney Channel stuff doesn't come on until after 11 pm.
StarscreamLSU
New Member
Yup....If I have to see one more Lawrence Brothers movie...arrg
figmentcrazy
Member
Thanks MrPromey. I understand how big business usually works but I didn't understand enough about Disney's branch business history for the move to make sense. I appreciate the explanation. I can see now why investments of this nature are good business decisions for them at this time. 
StarscreamLSU
New Member
Fox Family is kind of the same as Disney - only some of it's original shows are a little hokey.
