Disney/FOX Acquisition Thread

[JoeCamel]

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

Tick tock.....

 

[amityboattours]

Two more days for Mickey to print a bunch more of these off..

 

[Paulio]

The board of 21st Century Fox will weigh Comcast's $65 billion bid to buy most of its film and television assets in a meeting on Wednesday

Fox to Weigh Comcast Bid at Wednesday Meeting – Variety

 

[zg44]

The question is whether Disney needs to make a bigger offer before the Fox board meets. I'm not quite sure they have to and think it works out like this (as per the Variety article):

It sounds like after the Fox board determines Comcast made a higher offer, then the 5 day period matching period starts.

So this may stretch out another week.

Fox board meets Wednesday, and then Disney has until the following Wednesday, June 27, to match (i.e. 12 days from now).

 

[Ridgepole]

65 B and a dollar. The Price is Right

 

[Paulio]

Disney is expected to add cash to its bid for Fox assets: Sources

 

[Teebin]

Interesting take on Comcast’s potential debt:

Comcast will become one of the world's most indebted companies if it buys Fox

 

[Paulio]

I wonder how Comcast will pay back its debt if it wins the bid for the Fox assets.

 

[Mad Dog]

Comcast has excellent cash flow (cable/ internet subscriptions, pay tv, other holdings), and they'll be plenty more if the purchase goes through.

 

[zg44]

Interesting take on Comcast’s potential debt:

Comcast will become one of the world's most indebted companies if it buys Fox

I wonder how Comcast will pay back its debt if it wins the bid for the Fox assets.

Comcast will have EBITDA in the $40bn range annually if they get the Fox assets.

I think they can easily bring their total debt down to $110bn while growing EBITDA to $45bn over a 5-6 year timeframe.

They'll just halt buybacks for a period of 5-7 years.

 

[GadgetGuru]

I’m not crazy about Comcast winning this bid.

I don’t know anything about Comcast’s financial projections. Let’s assume that they buy Fox and they don’t see as much growth as they want.

What’s the quickest way to get more money? Cut large capital expenditures. The theme park business is nothing but large capital expenditures. I could see the parks lagging for a long while so that Comcast can clean up its balance sheet.

 

[Alicia]

I’m not crazy about Comcast winning this bid.

I don’t know anything about Comcast’s financial projections. Let’s assume that they buy Fox and they don’t see as much growth as they want.

What’s the quickest way to get more money? Cut large capital expenditures. The theme park business is nothing but large capital expenditures. I could see the parks lagging for a long while so that Comcast can clean up its balance sheet.

Raise Butterbeer prices again.

 

[GadgetGuru]

Raise Butterbeer prices again.

Because I’m a dork.

At $7 a piece, Comcast would have to sell 44 Butterbeers to every person in America to raise $110 billion.

 

[Alicia]

Because I’m a dork.

At $7 a piece, Comcast would have to sell 44 Butterbeers to every person in America to raise $110 billion.

What if each one costs $1 million?

 

[quinnmac000]

I’m not crazy about Comcast winning this bid.

I don’t know anything about Comcast’s financial projections. Let’s assume that they buy Fox and they don’t see as much growth as they want.

What’s the quickest way to get more money? Cut large capital expenditures. The theme park business is nothing but large capital expenditures. I could see the parks lagging for a long while so that Comcast can clean up its balance sheet.

....That was the same belief people had about Comcast buying NBCUniversal which just to remind people was ranked last in box office and in television at the time Comcast purchased them. Now they have the number 1 rated Cable and broadcast channel in addition to the strongest box office they have ever had. Same with theme parks.

If anyone is going to run Fox well, I believe in Comcast. I also want to point out, unlike Disney they haven't shut down or stopped production at any of their own assets.

 

[Paulio]

If the Fox board meets on Wednesday, willy they decide by that day or will it take a couple of days?

 

[LieutLaww]

They will discuss it and will wait to see what Disney does to counteract Comcasts offer.

 

[AlexanderMBush]

What if each one costs $1 million?

View attachment 6996

 

[zg44]

If the Fox board meets on Wednesday, willy they decide by that day or will it take a couple of days?

On Wednesday, Fox board will determine that the Comcast bid is superior.

That starts the 5 day matching period (assume business days).

Disney may wait until last day (next Wednesday to match) if Fox doesn't cancel the July vote.

Either way, this should heat up again after Wednesday.

 

[quinnmac000]

If things continue with trade wars, Disney going to need to pony up more cash otherwise stock holders definitely will end up with not as much as before.