Disney's Next Acquisition Speculation / Discussion

[BrianLo]

Comcast would make the most sense. Potter sharing for the parks and distribution. They would keep all that coin right off the bat. Partnership has already been good with co-productions in film including Twister coming up. Resurgence in Oz interest would be great timing as well.
Then Universal gets coin from Six Flags/Cedar Fair parks selling the merch. Expands the horror library which after Universal WB arguably has the best.

That also gives Comcast the WB Tunes. That would be wild considering what IOA was supposed to include before it was IOA. Universal may release better product there.

I agree, organically it makes the most sense. The parks already lean heavily on WB, it gives Comcast a superhero outlet. It gives peacock an actual destination to wrap into Max subscribers and a streaming platform that seems like it will survive in some combined form. It also gives Comcast access to a general entertainment prestige label (HBO) that they don’t really have right now. They do have a good lock on family entertainment with Dreamworks and illumination.

If only there was a Time Machine. Comcast should have never bid up Disney and chased after Sky. They’d be in a much stronger financial footing to take advantage of the fire sale going on with the other studios. It was those decisions I think that are preventing this from occurring.

 

[MisterPenguin]

I agree, organically it makes the most sense. The parks already lean heavily on WB, it gives Comcast a superhero outlet. It gives peacock an actual destination to wrap into Max subscribers and a streaming platform that seems like it will survive in some combined form. It also gives Comcast access to a general entertainment prestige label (HBO) that they don’t really have right now. They do have a good lock on family entertainment with Dreamworks and illumination.

If only there was a Time Machine. Comcast should have never bid up Disney and chased after Sky. They’d be in a much stronger financial footing to take advantage of the fire sale going on with the other studios. It was those decisions I think that are preventing this from occurring.

Well, WBD's worth is now about $21B.

Comcast just got $9B from selling their portion of Hulu. And they have about $6B cash on hand. So, they only need to scrap together another $6B to buy WBD.

Sure, it'll make things tight for awhile as they dedicate net income to paying down the debt. All they need do is, after Epic Universe, put a hold on new attractions in their parks for about 3-4 years.

It's not like ""fans"" of the parks will freak out over no new builds for a few years and turn on Comcast/Universal and be hypercritical of every little thing that USO does in vengeful spite for how they've been wronged by the lack of new attractions. I mean, a reaction like that would never happen!

 

[BrianLo]

Well, WBD's worth is now about $21B.

Comcast just got $9B from selling their portion of Hulu. And they have about $6B cash on hand. So, they only need to scrap together another $6B to buy WBD.

Sure, it'll make things tight for awhile as they dedicate net income to paying down the debt. All they need do is, after Epic Universe, put a hold on new attractions in their parks for about 3-4 years.

It's not like ""fans"" of the parks will freak out over no new builds for a few years and turn on Comcast/Universal and be hypercritical of every little thing that USO does in vengeful spite for how they've been wronged by the lack of new attractions. I mean, a reaction like that would never happen!

WB-Discovery also comes with 45 billion of their own debt. In practicality it’s a near 70 billion acquisition. I think that’s the even bigger factor, Comcast really can’t sit on 150 billion of debt. You’d need a company flush with cash that could absorb it. Disney is also out obviously, though I really don’t think they’d be interested in WB now. Too little synergy.

 

[celluloid]

WB was only one part of the strategy, but imagine it will be interesting for Cedar and Six flags merging now if the new WB ownership changes things.

 

[Disney Irish]

WB was only one part of the strategy, but imagine it will be interesting for Cedar and Six flags merging now if the new WB ownership changes things.

I don't know the specifics of the WB/Six Flags contract, but not sure why that would make a difference as any licensing deal would likely remain in-place post merger of WB/Comcast, if it were to happen. As it would make no sense to break it as its revenue generated yearly. Something that would be needed post merger of WB/Comcast with the huge debt load they would have.

Unless you're saying that Comcast would also then buy CedarFair/Six Flags post-WB merger, which makes no sense at all.

 

[celluloid]

I don't know the specifics of the WB/Six Flags contract, but not sure why that would make a difference as any licensing deal would likely remain in-place post merger of WB/Comcast, if it were to happen. As it would make no sense to break it as its revenue generated yearly. Something that would be needed post merger of WB/Comcast with the huge debt load they would have.

Unless you're saying that Comcast would also then buy CedarFair/Six Flags post-WB merger, which makes no sense at all.

It would by far hurt their texas park competition, which Universal is building in. It depends on how good that deal for WB in Six Flags has been.

Six Flags is about to put WB everywhere. The theme park world is a small slice, but it would make such a big impact for them to suddenly not be able to use them anymore. There is no Mississippi like Marvel law likely in the works for that. California and texas would benefit greatly from being able to use all WB they want (Tunes and DC characters big parts of that)

No, not alluding to comcast purchasing any park already in existence in the states.

 

[Disney Irish]

It would by far hurt their texas park competition, which Universal is building in. It depends on how good that deal for WB in Six Flags has been.

Six Flags is about to put WB everywhere. The theme park world is a small slice, but it would make such a big impact for them to suddenly not be able to use them anymore. There is no Mississippi like Marvel law likely in the works for that. California and texas would benefit greatly from being able to use all WB they want (Tunes and DC characters big parts of that)

No, not alluding to comcast purchasing any park already in existence in the states.

I don't know the exact terms of the deal between WB and Six Flags but I do know its exclusive. And rumors had the deal being in-place until 2053 or some absurd far off date. So if the rumor is true that deal, just like the Marvel/Uni deal, isn't going anywhere until both parties want it to be over.

Also why would Comcast basically give up free money, which they will need if they buy WBD. They don't need to use the DC/Looney characters in their parks. They got access to PLENTY of other IP they can use.

 

[celluloid]

I don't know the exact terms of the deal between WB and Six Flags but I do know its exclusive. And rumors had the deal being in-place until 2053 or some absurd far off date. So if the rumor is true that deal, just like the Marvel/Uni deal, isn't going anywhere until both parties want it to be over.

Also why would Comcast basically give up free money, which they will need if they buy WBD. They don't need to use the DC/Looney characters in their parks. They got access to PLENTY of other IP they can use.

Perhaps.
Also, WB tunes and DC properties not exclusive to Six Flags.

 

[celluloid]

It's not like ""fans"" of the parks will freak out over no new builds for a few years and turn on Comcast/Universal and be hypercritical of every little thing that USO does in vengeful spite for how they've been wronged by the lack of new attractions. I mean, a reaction like that would never happen!

Uni has had some stinkers, but when have they ever gone more than a few years without getting no new attractions or rethemes or new builds from either of their theme parks parks in Orlando?

 

[Disney Irish]

Perhaps.
Also, WB tunes and DC properties not exclusive to Six Flags.

Who else in the US beside Six Flags has the theme park rights to Looney Toons and DC?

 

[celluloid]

Who else in the US beside Six Flags has the theme park rights to Looney Toons and DC?

Well now you are specifying US. It is Tunes* by the way.
There are still other themed entertainment ventures out there for sure getting coin to WB not Six Flags.

And even then...

 

[Disney Irish]

Well now you are specifying US.
There are still other themed entertainment ventures out there for sure getting coin to WB not Six Flags.

And even then...
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We’ve been talking about the Six Flags/WB theme park contract which is based in the US, so don’t know why I would have to specify the US. But it is exclusive in the US, I believe there is a SEC filing on it, even if other themed entities can use DC and Looney Tunes properties outside the US.

Also the Legoland contract is separate as it’s part of the film rights when the Lego Batman movie was done.

 

[brodie999]

DC movies like Wonder Woman and both Shazam movies are starting to appear on Disney+ through Hulu

 

[MisterPenguin]

DC movies like Wonder Woman and both Shazam movies are starting to appear on Disney+ through Hulu

WarnerDiscoveryMaxHBO ain't doin' too well. They're licensing out their properties wherever they can (when they're not killing them for the bottom line).

Hulu is a bit like Netflix... they run other company's movies for a while.... which is what HBO used to be known for.

The irony.

 

[Miru]

The shift back to 'adult' films (called "general audience" as opposed to "family films" to avoid the unintended connotation of "adult films") happened only recently.

When D+ zoomed past all initial expectations, the data showed that the majority of subs were from households with no children. They were actually shocked by that. And when they polled those childless-home subscribers, they said they wanted more General Entertainment.

This led to Disney doubling down on Hulu and making a "Star" brand internationally to feature General Audience content.

Disney then committed themselves to be a "four quadrant" content creator and not a niche Family Entertainment content provider.

And they're no longer 'hiding' General Audience content under not-so-secret subsidiaries such as Touchstone. Yes, Disney has 20th Century and Searchlight, but, they're publicly embracing them as Disney brands as much as with Pixar or Marvel or LucasFilm.

Furthermore, Disney are also digging up the Touchstone/ABC content and trying to also publicly embrace them, though not as much as their shiny new content. A side effect of this is that the lesser Family Entertainment brands, such as Blue Sky, usually acquired, are left to rot with garbage new entries designed to pad out streaming, if that, while others like Saban are left buried entirely.

I do wonder what else they might buy, I think we’ll see some small acquisitions before any future major merger, but that major merger is most likely Epic Games. With some international IP, most notably Bluey, but also the likes of Dr. Who, Bleach, Macross, and Miraculous Ladybug, Disney have taken a “semi-acquisition” approach, targeting 1 IP rather than a whole company and not fully owning it, mainly handing dis-tribution.

 

[Garfield Builder]

Level-5 is the next acquisition, I suppose?

 

[Miru]

Level-5 is the next acquisition, I suppose?

Not likely, but it’s possible Disney will take the Dr. Who/Bluey approach with Yo-Kai Watch specifically for example.

 

[Comped]

OLC's market cap is on track to fall more than 30% by the end of the year... Could be a good deal of the price is right?

 

[Miru]

OLC's market cap is on track to fall more than 30% by the end of the year... Could be a good deal of the price is right?

Sounds good, but the backlash from park fans over losing the most independent Disney park out there will never end, and could even mean a serious blow to the Disney park operations as a whole. To be fair Disneyland Paris hasn’t been too mangled even under full Disney ownership. (But when they do mangle Paris, they mangle things really badly)

 

[Comped]

Sounds good, but the backlash from park fans over losing the most independent Disney park out there will never end, and could even mean a serious blow to the Disney park operations as a whole. To be fair Disneyland Paris hasn’t been too mangled even under full Disney ownership. (But when they do mangle Paris, they mangle things really badly)

Oh I disagree that there'd be a backlash, especially if Disney would bring over some of OLC's talent stateside (which they'd never do). It's unlikely to buy out Tokyo will ever be this cheap again, and if Disney wanted to do it, they'd need to do it while the Yen continues to slide (alongside the severe under-performance of OLC's stock price). Would it be expensive? Yes, but it'd be worth it (and probably easier than buying out the Chinese interests in HK and Shanghai) in the long run.