RUMOR: Disney Buying Hasbro?

[WED99]

Just ANOTHER reason that Wikipedia should not be used as a trusted source.

What person would be sad enough to go on Wikipedia and put false information like that! There are some real no lives out there, sorry for false info guys.

 

[WED99]

WED-just a quick explanation in easier to understand terms...revenue is generally all of the money that comes in, and net income is the profit that remains after all expenses are paid. There is, of course, far more detail involved, but to keep it simple here, the net income/profit is what's left over to either return to shareholders as dividends or keep in the bank for future needs.

Thanks very much for that! I learnt something today

 

[HMF]

I strongly feel that the current trend of all the IP in the world being in the hands of so few major corporations is harmful for a free and diverse market.

 

[montyz81]

I strongly feel that the current trend of all the IP in the world being in the hands of so few major corporations is harmful for a free and diverse market.

Soon those few major corporation will use one computer system that will become self aware!

 

[RightTurnClyde]

A deal this big would require Board approval, so they got nobody to blame but themselves if it happens.

As for funding, I believe Hasbro's market cap is around $8 billion, if my math is correct (it isn't always). Add a reasonable premium, and you're talking $11 billion or so for a purchase price. Disney's June 30 filing shows $4 billion in cash, a large portion of which, however, is needed to run current operations. However, the same filing also shows that Disney spent $2 billion in purchase of its own stock during the 9 months under June 30. Those are easily suspended if need be. In addition, the June 30 filing shows $12 billion in debt, while the Company's market cap is $90 billion. Plenty of borrowing capacity available without causing any real concerns about debt load. Translation -- a Hasbro purchase can be easily financed, even after taking into account the Lucas deal.

One minor correction for this. Disney obligated itself to repurchase the stock issued to buy Lucasfilm within 2 years. I assume this will be an open market repurchase, they would not be buying the stock back from Lucas. So that means they have 40 million shares to buy in the next two years.

 

[flynnibus]

One minor correction for this. Disney obligated itself to repurchase the stock issued to buy Lucasfilm within 2 years. I assume this will be an open market repurchase, they would not be buying the stock back from Lucas. So that means they have 40 million shares to buy in the next two years.

Sure.. but the rate is can still go down. They bought in 9m what they've said they will reabsorb over the next 24 months. So their current buyback program is already nearly 3x as large as they need to meet that promise.

 

[MichWolv]

One minor correction for this. Disney obligated itself to repurchase the stock issued to buy Lucasfilm within 2 years. I assume this will be an open market repurchase, they would not be buying the stock back from Lucas. So that means they have 40 million shares to buy in the next two years.

I don't believe they obligated themselves to buy back that number of shares -- they just intend to do so. Actually obligating themselves to make those repurchases would require a contract with either Lucas or somebody else (an investment bank, perhaps) to do so. I haven't seen that, but I might very well have missed it.

And @flynnibus is correct -- even if there is a commitment, it pales in size compared to what they've done in the recent past.

 

[flynnibus]

Actually obligating themselves to make those repurchases would require a contract with either Lucas or somebody else (an investment bank, perhaps) to do so. I haven't seen that, but I might very well have missed it.

No contract - just their statements to the investment community for their intention to not further dillute the stock by buying the shares back over the time period.

 

[FutureCEO]

Just stop Disney, you already own half of the US entertainment

 

[MichWolv]

No contract - just their statements to the investment community for their intention to not further dillute the stock by buying the shares back over the time period.

Thanks. That's what I thought.

 

[biggy H]

Your right, smurfs were 1958 and snow white was 1937!

Uhhhh....NO

Smurfs 1958

Seven Dwarfs 1937


Nevermind...I see you did your research.

Not quite correct... Snow White dates back to 1812.... http://en.wikipedia.org/wiki/Snow_White

 

[WED99]

Not quite correct... Snow White dates back to 1812.... http://en.wikipedia.org/wiki/Snow_White

But disney started the dwarves who have names and different primary emotions. Similar to the smurfs.

 

[thomas998]

That's true. I was only remarking on how unhappy the Board should be that the guy they appointed to run the company is choosing this as the way to spend his time. If I was on the Board, I would consistently be annoyed that the CEO is constantly coming up to me, palms up and arms outstretched, asking again for more money to make yet another acquisition. Doesn't he have anything else to do, like actually contribute ideas that improve our current product?

Don't assume the board would be unhappy. A lot of times, when a company decides that there is only limited growth possible with their existing company, acquisitions are considered the best option. I suspect this may be the reason Disney has picked up marvel and Lucas, I wouldn't be surprised if they continue until it nearly kills them. That is also what often happens, a company in acquire mode over pays and eventually they face the music.

 

[SirLink]

If Disney wants to buy the rights of anything have them buy The Wombles, I want my Wombles ride in UK @ Epcot

 

[AndyS2992]

I highly doubt this is true. I assume they are buying the rights to Star Wars off them or are negotiating something.

 

[lazyboy97o]

I highly doubt this is true. I assume they are buying the rights to Star Wars off them or are negotiaiting something.

I've had some similar thoughts. I can see how "Disney is looking to buy out Hasbro['s Star Wars contracts" could become "Disney is looking to buy Hasbro" in a game of sources telephone.

 

[jmmc]

Not sure if this was brought up here. I looked, but may have missed it. With Disney's big "princess" theme out there and maybe more things seem as younger or more aimed at girls, Disney seems to be going after the "boy" franchises. Marvel, Star Wars, and now through Hasbro they would get Transformers and G.I. Joe, among other things.

 

[flynnibus]

I find it interesting that there are still no stories or sources about this from any major financial paper.. and the only source anywhere is a nameless MTV reporter.. Sounds blown out of proportion to me.

 

[JCtheparrothead]

I find it interesting that there are still no stories or sources about this from any major financial paper.. and the only source anywhere is a nameless MTV reporter.. Sounds blown out of proportion to me.

I agree. MTV doesn't scream reputable to me, but either does CNN half the time.

 

[Lord Pheonix]

they should at the least buy GE, then they could replace all the burnt out light bulbs everywhere