Disney/FOX Acquisition Thread

[Scott W.]

opcorn:

 

[Galaxy Defender]

$65 billion?!!!! I wonder how Disney's gonna top that?

They will throw in some fastpasses.

 

[Andysol]

Comcast's bid also includes
*Assumption of Debt
*2.5B Guarantee if the deal is blocked by regulators
*1.525B for Disney if FOX goes with Comcast.

Not a financial guy, so why this caveat?

 

[AlexanderMBush]

Not a financial guy, so why this caveat?

Perhaps it's to help try to give back some of the money Disney lost in the bidding effort? I'm probably wrong about that though, so hopefully Dave can correct me on that.

 

[Disneyhead]

Not a financial guy, so why this caveat?

It's an extra approx. 4B.

 

[s8film40]

Not a financial guy, so why this caveat?

It’s a penalty Fox has to pay to Disney if they walk away from the deal.

 

[Parkscope Joe]

Comcast's bid also includes
*Assumption of Debt
*2.5B Guarantee if the deal is blocked by regulators
*1.525B for Disney if FOX goes with Comcast.

This shows you how serious they are. No reason for Fox not to walk away from the Disney deal now.

 

[Andysol]

It’s a penalty Fox has to pay to Disney if they walk away from the deal.

Gotcha- so that's how much Disney stipulated they owe if Fox chose to walk away.

So likewise, if Disney were to trump Comcast's offer after Fox agreed to it- then they would owe Comcast whatever their stipulation is?

Although, I would guess Fox is likely to wait for Disney's "final bid" before making a decision.

 

[Parkscope Joe]

Gotcha- so that's how much Disney stipulated they owe if they agree then walk away?

So likewise, if Disney were to trump Comcast's offer after Fox agreed to it- then they would owe Comcast whatever their stipulation is?

Or will Fox likely wait for "final bids" before making a decision?

My understanding is Disney and FOX signed a preliminary agreement pending approval by the government and share holder approval. So basically if share holders vote no there would be a penalty, which would hurt their returns and thus share holder value.

Since at this point if there's signed preliminary agreement with Comcast there would be no penalty if FOX went with someone else.

 

[Paulio]

Found an article that says that Fox/Disney deal is more likely after the AT&T-Time Warner deal. Do you agree with this or not? The Fox/Disney Deal Is A Lot More Likely After AT&T/Warner

 

[zg44]

Gotcha- so that's how much Disney stipulated they owe if Fox chose to walk away.

So likewise, if Disney were to trump Comcast's offer after Fox agreed to it- then they would owe Comcast whatever their stipulation is?

Although, I would guess Fox is likely to wait for Disney's "final bid" before making a decision.

Yeah, the way these types of bidding wars work is that the "original agreement" isn't actually broken and the payment for breaking the agreement due until a different bid is formally accepted at the end of the bidding war.

So there could still be another round of bids while Disney's original bid is still the formally accepted bid.

Found an article that says that Fox/Disney deal is more likely after the AT&T-Time Warner deal. Do you agree with this or not? The Fox/Disney Deal Is A Lot More Likely After AT&T/Warner

No, in my mind, Comcast is the favorite now.

 

[AlexanderMBush]

Found an article that says that Fox/Disney deal is more likely after the AT&T-Time Warner deal. Do you agree with this or not? The Fox/Disney Deal Is A Lot More Likely After AT&T/Warner

Seems like the author of said article, published this prior to the announcement, as the article makes no mention of the amount of Money that Comcast has bidded, along with the other various details we now know.

 

[Brian G.]

Seems like the author of said article, published this prior to the announcement, as the article makes no mention of the amount of Money that Comcast has bidded, along with the other various details we now know.

Agreed. The article reads more "Disney and Fox should be all good.... Unless Comcast comes strong" - which they have.

Here's Comcast's official bid letter

Comcast Makes Superior All-Cash Proposal to Acquire 21st Century Fox After Spinoff of ‘New Fox’

 

[Paulio]

Seems like the author of said article, published this prior to the announcement, as the article makes no mention of the amount of Money that Comcast has bidded, along with the other various details we now know.

Gotcha, it seems like the author of the article makes no serious evidence and just make allegations he can't back up.

 

[zg44]

Comcast is willing to divest up to all of the Fox RSNs and part of Fox's Hulu stake to get the deal through.

That tells you what's most important: Sky, Star India, FX/National Geographic, and the tv/movie studio.

 

[amityboattours]

Comcast and Sky users may wish to put in for some overtime shifts, something tells me that your subscriptions will be going up again soon!!!

 

[Andysol]

Comcast is willing to divest up to all of the Fox RSNs and part of Fox's Hulu stake to get the deal through.

That tells you what's most important: Sky, Star India, FX/National Geographic, and the tv/movie studio.

That's very short sided- typical dinosaur mindset. Why wouldn't they want majority share of Hulu. It already has the programming and systems in place to compete with Netflix and Amazon.

 

[zg44]

That's very short sided- typical dinosaur mindset. Why wouldn't they want majority share of Hulu. It already has the programming and systems in place to compete with Netflix and Amazon.

I think they want to keep 50+% of Hulu if possible.

 

[Paulio]

The Latest: Comcast eyes Fox's international business - ABC News

Fox is currently reviewing Comcast's offer. Would they likely break up and team up with Comcast?

 

[Parkscope Joe]

The Latest: Comcast eyes Fox's international business - ABC News

Fox is currently reviewing Comcast's offer. Would they likely break up and team up with Comcast?

I think it's extremely likely they will.