Disney/FOX Acquisition Thread

[quinnmac000]

Looks like we are having ourselves a bidding war....
Sky agrees to share information relevant to Fox-Disney deal | Reuters

 

[quinnmac000]

Four senior UK politicians urge regulator to block Murdoch-Sky deal | Kitco News

A member from every major British party has asked regulator to not allow the Fox-Sky deal to go through.

 

[quinnmac000]

Plot twist,

Disney Could Acquire Sky News in Fox-Sky Deal’s Latest Twist – Variety

However, Disney just got slapped hard by the UK due to public required reporting of their wage gap between the genders which was way above average.

So I'm not sure this will work out well in the way Disney hopes.

Men Earn 22% More Than Women At Disney As It Reveals Gender Pay Stats | Deadline

 

[quinnmac000]

Looks like Fox is facing even more trouble in Europe which also may hurt them buying out Sky in full.

European Commission Raids Fox Network Group UK Offices In Sports Rights Probe | Deadline

 

[Paulio]

Disney-Fox Deal To Close By Summer 2019, “Diet Fox” Town Hall meeting | Deadline

 

[HereWeGo]

Comcast Bid 16% More Than Disney for 21st Century Fox, Filing Shows - The New York Times

After reading this, I feel the key reason that Comcast was rejected (thank God), was the fact that the 16% higher price would be a moot issue within a very short time: the Disney stock will surpass the value of the Comcast stock. So while Disney's bid might have been 16% lower than Comcast's at the time of the sale, the Disney stock would be guaranteed to jump past it. Probably on the day regulators approve the deal even.

 

[quinnmac000]

Comcast Bid 16% More Than Disney for 21st Century Fox, Filing Shows - The New York Times

After reading this, I feel the key reason that Comcast was rejected (thank God), was the fact that the 16% higher price would be a moot issue within a very short time: the Disney stock will surpass the value of the Comcast stock. So while Disney's bid might have been 16% lower than Comcast's at the time of the sale, the Disney stock would be guaranteed to jump past it. Probably on the day regulators approve the deal even.

However Disney stock hasn't been trending upwards so and has lost money so....

 

[rageofthegods]

Comcast Bid 16% More Than Disney for 21st Century Fox, Filing Shows - The New York Times

After reading this, I feel the key reason that Comcast was rejected (thank God), was the fact that the 16% higher price would be a moot issue within a very short time: the Disney stock will surpass the value of the Comcast stock. So while Disney's bid might have been 16% lower than Comcast's at the time of the sale, the Disney stock would be guaranteed to jump past it. Probably on the day regulators approve the deal even.

I think the reason I heard was that Disney was willing to give Murdoch more control of the company than Comcast, with some talk (unsubstantiated but outwardly reasonable) about a member of the family being angled for CEO-ship later on.

Which honestly concerns me even more.

 

[HereWeGo]

However Disney stock hasn't been trending upwards so and has lost money so....

Yeah that’s why I said after the regulators approve it. I didn’t say it’s happening right this second. So...

 

[quinnmac000]

Its official....and Sky dropped Fox's deal like it was hot

Comcast In Formal $31B Bid For Sky, Directors Nix Fox Recommendation | Deadline

 

[zg44]

Basically, Sky's independent board members want to see a bidding war between Comcast and Disney for Sky, and now they have their wish.

We'll have to see how high Disney is willing to bid.

Sky's stock is already trading above Comcast's offer on expectations that the bids will get pushed at least 10+% higher.

 

[quinnmac000]

Comcast stock is skyrocketing right now...
Looks like investors are finally on board with Sky.

 

[Galaxy Defender]

Comcast stock is skyrocketing right now...
Looks like investors are finally on board with Sky.

SKYrocketing. Good one.

 

[Paulio]

The way I see it, Comcast/Universal needs Fox more than Disney does. Disney is already ahead of Universal's movie studio by a long shot. If the AT&T/Time Warner deal goes through, I'd expect Murdoch, Fox, and Sky shareholders to take the higher offer from Comcast because of the alleviated regulatory concerns. Disney would be stretched thin if they were to outbid Comcast's $60+ billion offer, so I doubt they'll take that risk.

 

[Galaxy Defender]

The way I see it, Comcast/Universal needs Fox more than Disney does. Disney is already ahead of Universal's movie studio by a long shot. If the AT&T/Time Warner deal goes through, I'd expect Murdoch, Fox, and Sky shareholders to take the higher offer from Comcast because of the alleviated regulatory concerns. Disney would be stretched thin if they were to outbid Comcast's $60+ billion offer, so I doubt they'll take that risk.

Comcast owning Fox brings up so many interesting possibilities and also a lot of questions. I am guessing Disney would be very unhappy if Fox is owned by Comcast.

 

[jseal777]

So wait I thought it was a done deal. So is universal in the mix for Fox now?

 

[quinnmac000]

The way I see it, Comcast/Universal needs Fox more than Disney does. Disney is already ahead of Universal's movie studio by a long shot. If the AT&T/Time Warner deal goes through, I'd expect Murdoch, Fox, and Sky shareholders to take the higher offer from Comcast because of the alleviated regulatory concerns. Disney would be stretched thin if they were to outbid Comcast's $60+ billion offer, so I doubt they'll take that risk.

This isn't for Fox though. Its for Sky which is the second most valuable asset hints why Comcast is willing to pay $33 Billion for it.

 

[Paulio]

Comcast owning Fox brings up so many interesting possibilities and also a lot of questions. I am guessing Disney would be very unhappy if Fox is owned by Comcast.

It would put Universal back to producing CBMs since 2008 when it distributed the 2008 movie The Incredible Hulk with Edward Norton as Bruce Banner. It would transfer the Simpsons at Universal theme parks from being a Fox property to being a Universal property instead. You will have NBC TV commercial tunes with some Fox characters in commercials/advertisements. Plus, some of the Fox assets can be very useful for Universal parks, especially the upcomign 3rd theme park in Orlando. Among other things.

So wait I thought it was a done deal. So is universal in the mix for Fox now?

Hardly a done deal, the Disney/Fox deal still needs to be cleared through by regulators, not just here in the U.S., but also regulatory bodies around the world. It takes regularly about 11 to 18 months after the deal was announced. Right now, it's almost 5 months into May, so that leaves us maybe 7 to 14 more months for Disney/Fox deal to be approved (or not). Countries around the world approved the AT&T-TW deal, and this country is the only chance of being approved fully, after the DOJ blocked the deal.

This isn't for Fox though. Its for Sky which is the second most valuable asset hints why Comcast is willing to pay $33 Billion for it.

Exactly, and there's a problem Disney wants Sky in order to increase its reach internationally, as they describe Sky as the most important asset of FOX. The fact that Fox were already trying to purchase the part of Sky that they didn't own sweetened the deal. With Sky out of the question, Disney may want to renegotiate for a lower price.

 

[zg44]

Disney/Fox merger still has another 9-12 months of Justice Department review, so it's not a done deal by any means.

And the Sky uncertainty is another questionmark here. Fox shareholders may push for a higher price too if they see Sky getting a higher price from Comcast.

 

[quinnmac000]

Disney/Fox merger still has another 9-12 months of Justice Department review, so it's not a done deal by any means.

And the Sky uncertainty is another questionmark here. Fox shareholders may push for a higher price too if they see Sky getting a higher price from Comcast.

Fox has to go through UK Commission review which is already looking against them for the sports pricing scandal, the past phone tapping scandal, and too much power with UK politics so even with the higher price, the UK government can and most likely will shut it down.

That's why Disney is getting ready to put in a bid which will mess up their Fox Deal as well.