Fox to Disney to Sinclair

ifmanis5

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LINK: https://www.cnbc.com/2017/11/06/21st-century-fox-has-been-holding-talks-to-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.
In addition to the movie studio, TV production and international assets such as Star and Sky, Disney would also add entertainment networks such as FX and National Geographic.
The contemplated structure of the deal or the price that has been discussed could not be learned.
 

johnmd20

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Mugsy's Jock

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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.
 
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jtn46

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

AlNipper49

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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)
 

Hoya81

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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.
 

chonce1

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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)
 

ifmanis5

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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)
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
 

Mugsy's Jock

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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.
 

Mugsy's Jock

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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/3314163-variety-fox-still-early-asset-sale-talks-comcast-disney-others?uprof=82&dr=1#email_link
 

edoug

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

Hoya81

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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.
 

ifmanis5

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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/
The British offices of the Murdoch entertainment empire 21st Century Fox have been raided by investigators from the European Commission, The Daily Telegraph can reveal.

It is understood that competition watchdogs gained access to the company’s offices in Hammersmith, west London, early today to seize documents and computer records.

The precise nature of the confidential investigation, which is believed to be in its early stages, is unclear.
 

doc

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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
 

MuzzyField

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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.
 

ifmanis5

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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 …
 

berniecarbo1

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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.
 

Mugsy's Jock

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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)
 

ifmanis5

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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/amazon-bids-for-disneys-22-regional-sports-networks-including-yes-network-sources-say.html
Amazon is bidding for all of the 22 regional sports TV networks that Disney acquired from 21st Century Fox.

The e-commerce giant's bid includes the New York-based YES Network, sources familiar with the matter told CNBC. An unknown sovereign wealth fund, along with the Yankees, are also bidding for the New York network.
 

ifmanis5

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Remember when Disney bought up a bunch of FOX baseball networks? Well, they are selling the biggest one off. YES will be sold back to the Yankees and partners for $3.4 billion...

https://www.foxbusiness.com/features/yankees-partner-with-amazon-sinclair-and-blackstone-to-buy-yes-network
The New York YankeesOpens a New Window. have reached an agreement to repurchaseOpens a New Window. the Yankees Entertainment Sports network (YES)Opens a New Window. from Disney at a price of $3.4 billion in a deal that is expected to close on Friday, FOX Business has learned.
https://deadline.com/2019/03/yes-network-sold-for-3-5b-to-yankees-amazon-sinclair-private-equity-reports-1202572010/

https://www.newsday.com/sports/media/yes-network-yankees-amazon-disney-1.28235233?utm_source=tw_sp
 

ifmanis5

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And now Disney has sold those Fox sports holdings to Sinclair...

The Verge‏Verified account @verge 4h4 hours ago
Disney sells off Fox’s regional sports networks to Sinclair for $10 billion

https://www.theverge.com/2019/5/3/18528388/disney-foxsregional-sports-network-sinclair-10-billion-justice-department-antitrust?utm_campaign=theverge&utm_content=chorus&utm_medium=social&utm_source=twitter …


https://www.theverge.com/2019/5/3/18528388/disney-foxsregional-sports-network-sinclair-10-billion-justice-department-antitrust
Sinclair is buying 21 regional sports networks from Disney in a $10 billion deal that marks the final major detail of Disney’s massive Fox purchase, according to The Wall Street Journal.

The 21 sports networks in question were part of Disney’s purchase of Fox and its assets in the blockbuster deal that closed earlier this year. But because of Disney’s already heavy presence in sports (mostly through ESPN and its various networks), Disney was required by regulators to divest those regional sports networks in order to get approval for the deal to go through.