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FOX Selling To Disney?

Discussion in 'Our Errors are Mistakes: The Media Forum' started by ifmanis5, Nov 6, 2017.

  1. ifmanis5

    ifmanis5 Member SoSH Member

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    LINK: https://www.cnbc.com/2017/11/06/21s...o-sell-most-of-company-to-disney-sources.html
    21st Century Fox looking to sell most of its film and TV holdings to Disney. This would NOT include Fox broadcast entities nor Fox Sports and Fox News but would include most other Fox film and TV holdings. These talks are on and off and nothing is reportedly immanent.
     
  2. AlNipper49

    AlNipper49 Huge Member Dope

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  3. AlNipper49

    AlNipper49 Huge Member Dope

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    40,174
  4. DrewDawg

    DrewDawg Dorito Dink SoSH Member

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  5. johnmd20

    johnmd20 literally like ebola Lifetime Member Gold Supporter SoSH Member

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  6. Mugsy's Jock

    Mugsy's Jock Longtime Member Lifetime Member Gold Supporter SoSH Member

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    I think the real gem in there for TWDC would be Fox's international distribution platforms (esp. Sky in Europe and India), and a hidden winner could be National Geographic which could be amped up to become an important worldwide competitor to Discovery.

    The Fox library is also certainly highly valuable. I almost wonder if TWDC started doing math around what it might cost to acquire THE SIMPSONS for the new DTC platform and the number was so ginormous that it actually wasn't a huge leap leap to "well, why not just buy the company". Disney's movie library, while A+ quality, isn't terribly deep and Fox would bring tonnage that could enable the company to be much more aggressive in the marketplace.

    Fox's TV production and movie studio aren't super-high margin businesses and, while strong, replicate similar units at TWDC.

    Similarly FX, while the state-of-the-art brand in the linear cable network space, is not a growth business given the rate linear ratings are melting annually. FX also relies heavily on licensed third-party content, and a combination with TWDC might enable it to wean itself off costly Sony and NBCU output deals (while hanging onto Fox and adding Disney, of course). NBCU/Comcast is very cozy with Netflix on a lot of fronts, so this could mean getting ahead of a possible alliance there.

    Some day everyone will live to regret breaking up that nice bundle. To replicate the diversity of content you can get now you'll probably need to a whole bunch of SVOD products -- call it Netflix/NBCU, Disney/Fox, a sports package with ESPN/Fox Sports/local RSNs, a non-sports package (Viacom/Discovery/A&E/AMC), and HBO/Turner bundled with a Verizon mobile subscription.
     
    #6 Mugsy's Jock, Nov 6, 2017
    Last edited: Nov 6, 2017
  7. ifmanis5

    ifmanis5 Member SoSH Member

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    I would LOVE to know the dollar amounts thrown around.
     
  8. TomRicardo

    TomRicardo rusty cohlebone Lifetime Member SoSH Member

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    The deal would also give Disney a majority share in Hulu which would be at least easier to base their own streaming services instead of building their own
     
  9. jtn46

    jtn46 Well-Known Member Gold Supporter SoSH Member

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    We bought BAMTech (MLB.tv) so we don't need Hulu for that.
     
  10. Hoya81

    Hoya81 Member SoSH Member

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  11. TomRicardo

    TomRicardo rusty cohlebone Lifetime Member SoSH Member

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    BAMTech has scaling issues as it was built on a private cloud platform. Hulu is built on a public cloud platform and has higher scaling.
     
    #11 TomRicardo, Nov 15, 2017
    Last edited: Nov 15, 2017
  12. Mugsy's Jock

    Mugsy's Jock Longtime Member Lifetime Member Gold Supporter SoSH Member

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    Believe $20 billion was bandied about...
     
  13. AlNipper49

    AlNipper49 Huge Member Dope

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    I wonder how this would impact Universal Studios. Disney is actually a pretty decent monopoly in that they generally do a good job. When it comes to parks though Universal is better than Disney in some key ways (I.e. Fastpass at Disney is an unmitigated fucking disaster)
     
  14. Hoya81

    Hoya81 Member SoSH Member

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    I’d prefer Disney just do a side deal to reacquire the X-Men/FF rather than buy the whole studio. In my mind, Amazon/Apple would be logical suitors given how they’re ramping up content production. Although the close relationship between Disney/Apple(the Jobs family is one of Disney’s biggest shareholders) might put them out of the running there.
     
  15. chonce1

    chonce1 lurker

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    How much media consolidation can this country stomach. Broadcast media is the worst of them all, with 5 holdings owning 90 percent of the industry.

    Add to this Sinclair now getting FCC loopholes reinstated to get a merger approved (that Ajit Pai) now they have access to homes in 70 percent of the country (the rule, until a few months ago, was 39 percent, I think. Surely well below 50).

    I am glad this merger talk died, but many like it are in talks. It is worrying for reasons going well past sports (although it won't help sports coverage)
     
  16. ifmanis5

    ifmanis5 Member SoSH Member

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    How about more consolidation? Like, way more.

    Jeremy B. White‏Verified account @JeremyBWhite2h2 hours ago
    BREAKING: FCC votes to eliminate media ownership rules, paving way for one company to own multiple TV stations or both TV station/newspaper in one market
     
  17. johnmd20

    johnmd20 literally like ebola Lifetime Member Gold Supporter SoSH Member

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    Comcast also approached 21st Century Fox. It's in play.
     
  18. ifmanis5

    ifmanis5 Member SoSH Member

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    And Verizon. Fox was to get out of the entertainment biz to focus on broadcasting and other brands would love to bu their vault. Not sure why Fox is doing this. Murdochs cashing out?
     
  19. Mugsy's Jock

    Mugsy's Jock Longtime Member Lifetime Member Gold Supporter SoSH Member

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    Looking at Fox fit w/Comcast vs. Disney:

    Sky/International: Equally valuable to NBCU and Disney, who each could benefit comparably from Fox's great distribution and tech in Europe and Asia.

    Cable Networks: FX is a better fit going into the Disney portfolio, as it rounds out the Disney Channel/Freeform combination. Moreover while Fox is hanging on to its sports portfolio, FX (and FXX) is very complementary to ESPN. On the Comcast side, FX serves a similar market purpose as USA (albeit much better). I mentioned above that I'd be especially intrigued to see Nat Geo marketed alongside Disney Channel -- NBCU doesn't have an analogous kids/informational franchise.

    Movie and TV Production: Not especially must-have for Disney or Comcast, as each of those companies already have significant production facilities and lots. Bigger's better, of course, but it's not essential.

    Movie and TV Library: Needed more by Disney, which has a relatively shallow movie and TV libraries. Comcast enjoys the vast NBCU libraries and while more is always good, it's more additive to Disney. Moreover, as Hoya81 references above, Disney would get especially good utility out of bringing the X-Men/Fantastic Four gang back in the Marvel fold.

    SVOD Platforms: Great for either brand. Fox's library would greatly enhance Disney's developing DTC platform... but a combination of the Fox library and the NBCU library would add up enough content to launch a premium SVOD brand of their own.

    Theme Parks: Great for either brand. Again, Nat Geo could be a great asset here with animal/historical parks that would round out either portfolio.
     
  20. TheJodyReedExperience

    TheJodyReedExperience Well-Known Member Gold Supporter SoSH Member

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  21. Mugsy's Jock

    Mugsy's Jock Longtime Member Lifetime Member Gold Supporter SoSH Member

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    NBCU, Disney, "and others" continuing to circle the Fox asset pool that's on the table.

    I have a hard time seeing Sony get in the mix -- while they could desperately use Fox's cable networks without any skin in that game (unless you count GSN), they've badly needed assets for years and never have been able to come close to a winning bid. Thinking AMC, Weather Channel, the Scripps Networks and Viacom as groups that could've been had by Sony. Starz too.

    Verizon is a bit of a wild card -- they do have a ton of cash and can scale almost anything, could also sorely use a content play, and really know how to market (annoying Middleditch commercials notwithstanding). However Fox's estimable international assets don't offer any particular synergy, so they may need to sell those along.

    MoffitNathanson analyst Michael Nathanson pegs the value of the Fox assets at $48.5B. So where's Google already?

    https://seekingalpha.com/news/33141...omcast-disney-others?uprof=82&dr=1#email_link
     
  22. edoug

    edoug Member SoSH Member

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    How would the potential death of net neutrality have on some future buyers?
     
  23. Hoya81

    Hoya81 Member SoSH Member

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  24. Hoya81

    Hoya81 Member SoSH Member

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    https://t.co/bzbKBQaXr9

    Deal could be announced as soon as next week. The reporter also indicates on Twitter that this will include the Fox regional sports networks, but not FS1 or 2.
     
  25. Detts

    Detts Member SoSH Member

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    [​IMG]

    Leech approves
     
  26. soxhop411

    soxhop411 Member SoSH Member

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    Murdoch could be next Disney CEO
     
  27. ifmanis5

    ifmanis5 Member SoSH Member

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  28. Hoya81

    Hoya81 Member SoSH Member

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    #28 Hoya81, Dec 14, 2017
    Last edited: Dec 14, 2017
  29. ifmanis5

    ifmanis5 Member SoSH Member

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  30. TheJodyReedExperience

    TheJodyReedExperience Well-Known Member Gold Supporter SoSH Member

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  31. Reverend

    Reverend for king and country Lifetime Member SoSH Member

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  32. ifmanis5

    ifmanis5 Member SoSH Member

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    Murdoch's offices were just raided. In theory this could jeopardize the sale.
    https://www.telegraph.co.uk/business/2018/04/10/european-commission-raids-murdochs-fox-hq-london/
     
  33. ifmanis5

    ifmanis5 Member SoSH Member

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  34. doc

    doc Member SoSH Member

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    Is Fox news going to Disney? I hope so because I would love to see Tucker Carlson and Laura Ingalls deliver their "news" wearing mouse ears
     
  35. Lose Remerswaal

    Lose Remerswaal Leaves after the 8th inning Lifetime Member SoSH Member

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  36. thebtskink

    thebtskink lurker

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    Fox keeps the Fox News network (money), and Fox network (FCC won't let Disney own both ABC and Fox).
     
  37. Hoya81

    Hoya81 Member SoSH Member

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  38. MuzzyField

    MuzzyField Well-Known Member Gold Supporter SoSH Member

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    How is the Comcast/Disney battle for Sky likely to go?

    In the big picture, isn't Sky's European distribution platform just as important to Disney as the acquired content assets of FOX? Did international regulatory issues prevent this from being one large purchase for Mickey Mouse? The Hulu stake Disney is getting improves their US distribution side and will probably morph with BAM in some way.

    I know Sky provides the same advantages for the content assets of Comcast/NBC/Universal, but as l long-trapped Concrap ISP victim, I enjoy rooting against them.
     
  39. Mugsy's Jock

    Mugsy's Jock Longtime Member Lifetime Member Gold Supporter SoSH Member

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    I wouldn’t be at all shocked if Comcast gets Disney’s acquiescence on Hulu as a parting gift for calling off the dogs on Fox.
     
  40. ifmanis5

    ifmanis5 Member SoSH Member

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    Today Comcast officially ended it's attempt to buy Fox assets.

    Variety‏Verified account @Variety 2h2 hours ago
    "Comcast does not intend to pursue further the acquisition of the 21st Century Fox assets and, instead, will focus on our recommended offer for Sky," the company said in a statement http://bit.ly/2O0zhBD


    CNBC Now‏Verified account @CNBCnow 3h3 hours ago
    BREAKING: Comcast says it is dropping its pursuit of Twenty-First Century Fox’s assets, focusing on Sky bid https://www.cnbc.com/2018/07/18/comcast-drops-pursuit-of-its-bid-for-21st-century-fox-assets.html …
     
  41. Hoya81

    Hoya81 Member SoSH Member

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  42. berniecarbo1

    berniecarbo1 Member SoSH Member

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    So, in summary, it is a $71 B deal. The RSNs have to be sold. Anybody in the lead on picking up those assets? What does that mean relative to local TV rights, etc.
     
  43. Mugsy's Jock

    Mugsy's Jock Longtime Member Lifetime Member Gold Supporter SoSH Member

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    List of Fox-owned RSNs (I did this by hand, so possible I'm missing something):

    Fox Sports Arizona (Diamondbacks, Coyotes, Suns)
    Fox Sports Carolinas (Hurricanes, Hornets)
    Fox Sports Detroit (Tigers, Pistons, Red Wings)
    Fox Sports Florida (Rays, Magic, Marlins, Panthers)
    Fox Sports Indiana (Pacers)
    Fox Sports Kansas City (Royals)
    Fox Sports Midwest (Cardinals/MLB, Blues)
    Fox Sports New Orleans (Pelicans)
    Fox Sports North (Twins, Timberwolves, Wild)
    Fox Sports Ohio (Cavs, Reds, Blue Jackets)
    Fox Sports Oklahoma (Thunder)
    Fox Sports San Diego (Padres)
    Fox Sports South (Hawks, Braves)
    Fox Sports Southeast (Hawks, Braves, Hornets, Grizzlies, Predators)
    Fox Sports Southwest (Mavs, Stars, Rangers, Spurs)
    Fox Sports Sun (Magic, Heat, Rays, Marlins, Lightning)
    Fox Sports Tennessee (Grizzlies, Predators)
    Fox Sports West / Prime Ticket (Clippers, Angels, Rams, Kings, Ducks)
    Fox Sports Wisconsin (Brewers, Bucks, Wild)
    SportsTime Ohio (Indians)
    YES (Yankees, Nets)
     
  44. ifmanis5

    ifmanis5 Member SoSH Member

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    Woah woah woah, what is this?

    CNBC Now‏Verified account @CNBCnow 1h1 hour ago
    BREAKING: Amazon bids for 22 regional sports networks Walt Disney must divest in Fox deal; Amazon, Blackstone also join Yankees with bids for YES Network; 2nd round bids expected before year-end - sources
    https://www.cnbc.com/2018/11/20/ama...tworks-including-yes-network-sources-say.html
     

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