The Integration of Fox into the Disney Corporate Family: Parks, Movies, IPs, Studios

Slpy3270

Slpy3270

Well-Known Member
AnotherDayAnotherDollar said:
Highly unlikely.
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This issue is what dragged the whole thing on. Since there's no chance they will allow them to merge Fox Sports Brazil with ESPN Brazil (why wouldn't they've allowed it in the first place?), and since spinning off the company is a no-go given that they would need massive amounts of money to continue going, what other path is there other than a lawsuit or more forced divestitures?

And how is Mexico going to respond? What if they find themselves in a similar dilemma?
 
bartholomr4

bartholomr4

Well-Known Member
Slpy3270 said:
This issue is what dragged the whole thing on. Since there's no chance they will allow them to merge Fox Sports Brazil with ESPN Brazil (why wouldn't they've allowed it in the first place?), and since spinning off the company is a no-go given that they would need massive amounts of money to continue going, what other path is there other than a lawsuit or more forced divestitures?

And how is Mexico going to respond? What if they find themselves in a similar dilemma?
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How could they undo the merger.... They might put some regulation in place, but Disney still keeps the assets.
 
D

Darkprime

Well-Known Member
The likely scenario imo is they have to run Fox Sports Brazil as its own entity until such a time a potential buyer comes forward. Nothing to worry about the merger is closed. Iger isn't gonna let this screw things up.
 
A

AnotherDayAnotherDollar

Well-Known Member
Slpy3270 said:
This issue is what dragged the whole thing on. Since there's no chance they will allow them to merge Fox Sports Brazil with ESPN Brazil (why wouldn't they've allowed it in the first place?), and since spinning off the company is a no-go given that they would need massive amounts of money to continue going, what other path is there other than a lawsuit or more forced divestitures?

And how is Mexico going to respond? What if they find themselves in a similar dilemma?
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This merger is not getting undone. Simply not happening no matter what happens here.

Brazil went from an extreme left government to a right one. 4 seats on the board are now empty with 3 new members proposed by the new President already in the process of being voted on by the Senate early next year. It is quite possible that CADE votes to allow Disney to keep the asset especially as they tried to sell the market at fair market value and were unable to. Another possibility is divestment and splitting of the sales with Globo. Another possibility is a spin off of Fox Sports into its own entity. There will be no forced divestitures of other assets, and even if there was it wouldn't affected the grand scheme of things from operations headquartered in the US. That sounds like wishful thinking from people who think Disney is the boogeyman.

Mexico or Chile hasn't said anything on the matter, but their entities haven't said anything and we have no idea where they are in the process of a sale there.
 
bartholomr4

bartholomr4

Well-Known Member
Twilight_Roxas said:
Don’t know if this is good or bad.

www.reuters.com

Brazil antitrust regulator to reassess Disney-Fox deal

Brazil's antitrust regulator said on Wednesday it will reassess Walt Disney Co's (DIS.N) $71 billion purchase of Twenty-First Century Fox (FOXA.O) because the divestiture requested by the regulator as a condition for the merger of U.S. media companies has not happened yet.
www.reuters.com www.reuters.com
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Not sure how it could be bad. Disney can't force someone to buy the division.

Options are:
  • Give Disney an extension (Most likely)
  • Negotiate with Disney to place conditions on retention related to competition (i.e. provide the service to users for a specific price, don't allow Disney to fold it into ESPN, etc, which the CADE approves)
  • Force Disney to spin it off into another publicly traded company, which would maintain the competitive landscape, but would likely result in increased costs for consumers.
I read a previous article stating the CADE is struggling with empty board seats and the election of a new president who looks at competition differently that the administration which was in place when the original deal was approved. That article stated there are 4 empty seats, to be appointed by the new President. Who knows how these individuals will look at the issue, and what importance they will put on its resolution.

This could drag out for quite awhile.
 
bartholomr4

bartholomr4

Well-Known Member
Darkprime said:
Do you guys think Fox will be fully integrated by the next D23 in 2021?
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My experience with mergers tells me they have identified a series of integration projects which will most likely all be complete by D23 in 2021. However these things never really end. There is always another project which comes up. Heck you could argue the Lucas and Marvel acquisitions aren't complete yet, because the rides and attractions in the parks are not yet complete..... I think the layoffs and system conversions and overlapping processes should all be resolved in your suggested time line.
 
Slpy3270

Slpy3270

Well-Known Member
A court in Mexico has granted Televisa an injunction to halt the merger in Mexico on the grounds that IFT unfairly dismissed their concerns on the merger when it was under review.

At this rate, I highly doubt Disney will be able to make the May 2020 deadline to sell the sports networks there. I told y'all Brazil and Mexico would be major headaches for the merger.
 
bartholomr4

bartholomr4

Well-Known Member
Twilight_Roxas said:
I feel like they’re doing this as a way to harass Disney.
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Of course they are.... But what are the options Mexico has, other than continuing to give Disney extensions. The merger is complete. They can't "un-own" the Fox Sports Properties. Until someone steps up and is willing to pay Disney a market price, then there is little or anything they can do.

Think about it from a potential buyers prospective. You are going to buy this property, and go up against Disney and Televisa, and must guarrantee as good or better access to the sports properties at the same costs, as Fox Disney has them today. How do you justify that purchase? Disney should consider free access to the Fox Sports events (or near free) to maximize access, and the issue will go away.
 
Slpy3270

Slpy3270

Well-Known Member
bartholomr4 said:
Of course they are.... But what are the options Mexico has, other than continuing to give Disney extensions. The merger is complete. They can't "un-own" the Fox Sports Properties. Until someone steps up and is willing to pay Disney a market price, then there is little or anything they can do.

Think about it from a potential buyers prospective. You are going to buy this property, and go up against Disney and Televisa, and must guarrantee as good or better access to the sports properties at the same costs, as Fox Disney has them today. How do you justify that purchase? Disney should consider free access to the Fox Sports events (or near free) to maximize access, and the issue will go away.
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I would argue that there's a political motive behind this but the owners of Televisa aren't known for being AMLO fanboys (they've been shilling for technocratic neoliberal candidates whenever elections came around). This likely has more to do with Televisa's ego than actually caring about competition in the media market in Mexico (after all, no other media group in Mexico, as far as I know, is joining them in the conflict).
 
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