Disney/FOX Acquisition Thread

[Mad Dog]

The analysts on CNBC, earlier today, were saying 70% of the Fox value in Comcast's bid was "International'. So that shows where the focus of this offer is centered.

 

[Paulio]

The analysts on CNBC, earlier today, were saying 70% of the Fox value in Comcast's bid was "International'. So that shows where the focus of this offer is centered.

So what does that mean? Does Comcast view domestic assets less than Sky? Or our assets are not in the priority right now?

 

[quinnmac000]

So what does that mean? Does Comcast view domestic assets less than Sky? Or our assets are not in the priority right now?

Well Star is valued at ~$20 Billion in assets so the fact they are getting it at the price point they are getting at is already a steal. Add in Sky and all the assets, it not absurd to think this is real value. However at the same time certain things are being overvalued.

 

[Mad Dog]

So what does that mean? Does Comcast view domestic assets less than Sky? Or our assets are not in the priority right now?

Bottom line is that this offer is more about the potential internationally than it is about domestic assets. Distribution platforms/networks are one of the keys to the deal. Lots of growth potential there.

 

[JoeCamel]

So what does that mean? Does Comcast view domestic assets less than Sky? Or our assets are not in the priority right now?

I think it is where the future growth will be not that domestic is worth less than international.

 

[amityboattours]

This huge waste of paper just arrived this morning, perfect timing!

 

[zg44]

So what does that mean? Does Comcast view domestic assets less than Sky? Or our assets are not in the priority right now?

It's 2-fold.

1) The addressable market for the foreign assets is much faster growing and has a much higher ceiling (i.e. Sky has 90% of its subscribers in 3 countries: UK/Germany/Italy, there's a lot of growth across Europe for them that can still happen; Star India is in the faster growing TV market in the world in India and its earnings grow around 20-30% a year probably).

2) The foreign assets would allow Comcast to diversify significantly given that right now 90%+ of its revenue/income is US-based. USJ is the main non-US asset that Comcast owns and Universal does bring in film revenue overseas and some tv revenue. But Comcast's non-US footprint is really negligible right now, and Comcast views the Fox assets as a way to expand overseas in a big way.

 

[quinnmac000]

It's 2-fold.

1) The addressable market for the foreign assets is much faster growing and has a much higher ceiling (i.e. Sky has 90% of its subscribers in 3 countries: UK/Germany/Italy, there's a lot of growth across Europe for them that can still happen; Star India is in the faster growing TV market in the world in India and its earnings grow around 20-30% a year probably).

2) The foreign assets would allow Comcast to diversify significantly given that right now 90%+ of its revenue/income is US-based. USJ is the main non-US asset that Comcast owns and Universal does bring in film revenue overseas and some tv revenue. But Comcast's non-US footprint is really negligible right now, and Comcast views the Fox assets as a way to expand overseas in a big way.

They have two main non US assets: NBCUniversal Entertainment Japan (holds over 450 rights to anime and was once the top anime company in the world) and NBCUniversal International which is 100% based in the UK yet produces products and houses majority of the foreign studiso that don't air at all in the US.

Sky will let them leverage their UK based studios content at a better rate than they currently are and India gives them access to a new market which they can produce local content with less governmental restrictions compared to China and other Asian countries.

 

[Mad Dog]

It's 2-fold.

1) The addressable market for the foreign assets is much faster growing and has a much higher ceiling (i.e. Sky has 90% of its subscribers in 3 countries: UK/Germany/Italy, there's a lot of growth across Europe for them that can still happen; Star India is in the faster growing TV market in the world in India and its earnings grow around 20-30% a year probably).

2) The foreign assets would allow Comcast to diversify significantly given that right now 90%+ of its revenue/income is US-based. USJ is the main non-US asset that Comcast owns and Universal does bring in film revenue overseas and some tv revenue. But Comcast's non-US footprint is really negligible right now, and Comcast views the Fox assets as a way to expand overseas in a big way.

:thumbsup:

 

[Moose84]

Can I just say that reading some of the dribble posted by so called experts and bloggers regarding the merger between disney and fox a better deal cause it allows Disney to diversify into a realm of film and entertainment they don’t have one is better for the industry and Fox. WTF people

Disney had that remember or do we all have short term memory.

Disney was responsible for releasing movies like The Rock, Con Air, Armageddon, Deep Rising, Ransom, Unbreakable, Signs, Tombstone, Crimson Tide, The Scarlett Letter, and that is just to name a few. These are adult geared some R rated affair that they produced through there touchstone and Hollywood pictures labels. They decided to go mostly away from adult fair and specifically all R rated movies all together. Yet they would for some reason decide to spend 50-60 billion dollars on another studio just to get into a genre they already had a footprint in?...um...no

Hell touchstone pictures(Hollywood is now defunct for over a decade) still exists just isn’t allotted much to produce as Disney wants to focus on family, more lighted hearted affair not alien, predator, kingsman, apes, etc

So a studio literally on purpose moved away from an older audience and there are people out there that honestly believe they will use fox to push “back” into that category

Wake up people disney wants regional sports, Hulu, sky(Comcast is ripping it away though), Star, marvel, and the original Star Wars trilogy. Some may say avatar but that belongs to Cameron and light storm studios not fox(only distribution). I honestly believe they could care less about the movie and tv rights.

Where as universal definitely cares about the same thing(w/ the exception of marvel and Star Wars minus being able to dangle it above the mouse for fun) they have already shown interest (and used) in the ips of fox from AHS, alien, predator, and Simpson etc. I believe that they would actually produce and keep in production a lot of fox’s Stronger products where disney will phase them out.

Do not get me wrong I thoroughly enjoy most of Disney’s output but just feel Comcast would be a better fit altogether as they still enjoy making films for all audiences,(p.s. am I the only one stoked for Skyscraper classic action movie that are too rare these days, I mean it’s die hard meets the towering inferno). I know some say but unite the marvel and Star Wars ya da ya da. Who’s to say let Comcast get fox then work a deal with Disney disney gets marvel characters back including(hulk but maybe not namor and F4 as I believe Disney will push to the back while Universal may actually try) as well as Star Wars and Uni gets Disney’s 30 percent stake in Hulu. I know but but F4?, well let universal work a deal like Sony and Spider-Man(or maybe disney demands for the Hulu shares who knows)

This is my take and my honest opinion disney will phase out a lot of the IPs and universal will support and build upon them(Kingsman is a franchise I would like continued and Disney would not be interested in that) so what say you....

Fun Fact to leave you with did you know that both “Who Framed Roger Rabbit?” and “A Nightmare Before Christmas” were not distributed by Disney studios but actually their Touchstone Picture label

 

[AlexanderMBush]

Just to bring this up, in regards to a merger that has been crucial in the Fox acquisition war so-far..

 

[Brian G.]

Can I just say that reading some of the dribble posted by so called experts and bloggers regarding the merger between disney and fox a better deal cause it allows Disney to diversify into a realm of film and entertainment they don’t have one is better for the industry and Fox. WTF people

Disney had that remember or do we all have short term memory.

Disney was responsible for releasing movies like The Rock, Con Air, Armageddon, Deep Rising, Ransom, Unbreakable, Signs, Tombstone, Crimson Tide, The Scarlett Letter, and that is just to name a few. These are adult geared some R rated affair that they produced through there touchstone and Hollywood pictures labels. They decided to go mostly away from adult fair and specifically all R rated movies all together. Yet they would for some reason decide to spend 50-60 billion dollars on another studio just to get into a genre they already had a footprint in?...um...no

Hell touchstone pictures(Hollywood is now defunct for over a decade) still exists just isn’t allotted much to produce as Disney wants to focus on family, more lighted hearted affair not alien, predator, kingsman, apes, etc

So a studio literally on purpose moved away from an older audience and there are people out there that honestly believe they will use fox to push “back” into that category

Wake up people disney wants regional sports, Hulu, sky(Comcast is ripping it away though), Star, marvel, and the original Star Wars trilogy. Some may say avatar but that belongs to Cameron and light storm studios not fox(only distribution). I honestly believe they could care less about the movie and tv rights.

Where as universal definitely cares about the same thing(w/ the exception of marvel and Star Wars minus being able to dangle it above the mouse for fun) they have already shown interest (and used) in the ips of fox from AHS, alien, predator, and Simpson etc. I believe that they would actually produce and keep in production a lot of fox’s Stronger products where disney will phase them out.

Do not get me wrong I thoroughly enjoy most of Disney’s output but just feel Comcast would be a better fit altogether as they still enjoy making films for all audiences,(p.s. am I the only one stoked for Skyscraper classic action movie that are too rare these days, I mean it’s die hard meets the towering inferno). I know some say but unite the marvel and Star Wars ya da ya da. Who’s to say let Comcast get fox then work a deal with Disney disney gets marvel characters back including(hulk but maybe not namor and F4 as I believe Disney will push to the back while Universal may actually try) as well as Star Wars and Uni gets Disney’s 30 percent stake in Hulu. I know but but F4?, well let universal work a deal like Sony and Spider-Man(or maybe disney demands for the Hulu shares who knows)

This is my take and my honest opinion disney will phase out a lot of the IPs and universal will support and build upon them(Kingsman is a franchise I would like continued and Disney would not be interested in that) so what say you....

Fun Fact to leave you with did you know that both “Who Framed Roger Rabbit?” and “A Nightmare Before Christmas” were not distributed by Disney studios but actually their Touchstone Picture label

Totally agree. Regional sports coverage is definitely up there for one their main reasons of acquisition.

 

[Paulio]

Can I just say that reading some of the dribble posted by so called experts and bloggers regarding the merger between disney and fox a better deal cause it allows Disney to diversify into a realm of film and entertainment they don’t have one is better for the industry and Fox. WTF people

Disney had that remember or do we all have short term memory.

Disney was responsible for releasing movies like The Rock, Con Air, Armageddon, Deep Rising, Ransom, Unbreakable, Signs, Tombstone, Crimson Tide, The Scarlett Letter, and that is just to name a few. These are adult geared some R rated affair that they produced through there touchstone and Hollywood pictures labels. They decided to go mostly away from adult fair and specifically all R rated movies all together. Yet they would for some reason decide to spend 50-60 billion dollars on another studio just to get into a genre they already had a footprint in?...um...no

Hell touchstone pictures(Hollywood is now defunct for over a decade) still exists just isn’t allotted much to produce as Disney wants to focus on family, more lighted hearted affair not alien, predator, kingsman, apes, etc

So a studio literally on purpose moved away from an older audience and there are people out there that honestly believe they will use fox to push “back” into that category

Wake up people disney wants regional sports, Hulu, sky(Comcast is ripping it away though), Star, marvel, and the original Star Wars trilogy. Some may say avatar but that belongs to Cameron and light storm studios not fox(only distribution). I honestly believe they could care less about the movie and tv rights.

Where as universal definitely cares about the same thing(w/ the exception of marvel and Star Wars minus being able to dangle it above the mouse for fun) they have already shown interest (and used) in the ips of fox from AHS, alien, predator, and Simpson etc. I believe that they would actually produce and keep in production a lot of fox’s Stronger products where disney will phase them out.

Do not get me wrong I thoroughly enjoy most of Disney’s output but just feel Comcast would be a better fit altogether as they still enjoy making films for all audiences,(p.s. am I the only one stoked for Skyscraper classic action movie that are too rare these days, I mean it’s die hard meets the towering inferno). I know some say but unite the marvel and Star Wars ya da ya da. Who’s to say let Comcast get fox then work a deal with Disney disney gets marvel characters back including(hulk but maybe not namor and F4 as I believe Disney will push to the back while Universal may actually try) as well as Star Wars and Uni gets Disney’s 30 percent stake in Hulu. I know but but F4?, well let universal work a deal like Sony and Spider-Man(or maybe disney demands for the Hulu shares who knows)

This is my take and my honest opinion disney will phase out a lot of the IPs and universal will support and build upon them(Kingsman is a franchise I would like continued and Disney would not be interested in that) so what say you....

Fun Fact to leave you with did you know that both “Who Framed Roger Rabbit?” and “A Nightmare Before Christmas” were not distributed by Disney studios but actually their Touchstone Picture label

You actually made a good point here. Disney would not put as much focus on adult animation or develop new adult-animated shows, as they're too busy with churning out kid-friendly animation for Disney Channel and Disney XD as well as Pixar and WDA movies that most people are familiar with. Universal is the only non-Disney studio that lacks the adult-animation department that the rest of the four other major studios, which is off course Sony, Paramount, Fox, and Warner Bros, so Comcast's acquisition of Fox would bring them into the world of adult-animation. Theme park wise, there's no chance in hell that Disney would put anything adult-animated related areas in its parks like NBCUniversal has with the Simpsons at USH and USF. Universal would also use Fox Searchlight Pictures to produce films set in the U.S. while utilizing Focus Features for oversea settings.

Since Disney's acquisition of Marvel Entertainment, they slowly moved away from producing horror and R-rated movies like other studios were doing and began to produce big, blockbuster and superhero movies meant to aim for everyone in order to maximize money and to bring about a better family-friendly image for themselves. Universal Studios still stays the same as it was once before, and they have hits from Illumination as well as JW and F&F live-action franchises, but lacks the proper superhero franchises that Disney, Sony, WB, and Fox have. Plus, with JW and F&F franchises not going to be around any more longer, having Fox's assets including Alien, Apes, Avatar, and X-Men to NBCUniversal's film/TV/theme park operations would be a great boost to Comcast.

It also might give Comcast/NBCUniversal a reason to pull its content away from Netflix and move into Hulu or possibly its own streaming service in the future. Make no mistake, a potential Comcast/Fox deal would secure a lot of intellectual and valuable properties for Universal Studios and would benefit them greatly in the long run. They might catch up with Warner Bros. and possibly overrun them to compete with Disney.

 

[ThemeParks4Life]

having Fox's assets including Alien, Apes, Avatar, and X-Men to NBCUniversal's film/TV/theme park operations would be a great boost to Comcast.

Disney controls the theme park rights to 3 of those (assuming nothing has changed with Alien).

 

[Brian G.]

Disney controls the theme park rights to 3 of those (assuming nothing has changed with Alien).

I believe that changed once they ditched GMR - but I'm not 100%

 

[AlexanderMBush]

Disney controls the theme park rights to 3 of those (assuming nothing has changed with Alien).

Avatar is one, but what was the other (Not Alien, as that was in GMR before that ride closed)?

 

[quinnmac000]

And like that Comcast is 100% cleared to purchase Sky...

European Commission Clears Comcast’s Bid To Buy Pay-TV Operator Sky | Deadline

 

[Paulio]

News like this somehow makes me feel like everything's going to tumble down on Disney. Not just the SKY purchase, but we still don't hear anything so far from Disney offering a clear, counter-offer against Comcast's bid.

 

[ThemeParks4Life]

Avatar is one, but what was the other (Not Alien, as that was in GMR before that ride closed)?

X-Men.

 

[quinnmac000]

News like this somehow makes me feel like everything's going to tumble down on Disney. Not just the SKY purchase, but we still don't hear anything so far from Disney offering a clear, counter-offer against Comcast's bid.

they have two more days to respond to the offer with a higher bid.