So, Comcast has won tonight the battle against FOX ( and so, Disney ) to own SKY, and here is why it's good news probably for everyone, Comcast, Disney AND Disney fans:
Why it's a good news for Comcast: Comcast wanted SKY almost at any price as it will give it an immediate access in 23 million homes outside the U.S, mainly in five European countries. It has cost Comcast $39 Billion to get it but now it's done. Sky’s independent board members still must approve the winning bid of $22.75 a share, and shareholders must ratify the deal before the sale will be complete, but considering the amount per share which is the double than it was one year ago, they most probably will. And do i have to remind you that Comcast also owns Universal theme parks? Who knows, if someday they finally decide to build a Universal Studios in Europe ( we can dream ) they'll now have a way to do a heavy marketing campaign to European audience for nothing...
Why it's a good news for Disney: Disney bought FOX for the huge amount of $71 Billion, $19 Billion more than its first offer and all this because Comcast wanted FOX too and raised the price in a win-win situation, i.e either Comcast was winning FOX or it wasn't ( what happened ) and it would have pushed its main competitor to pay such amount that it will increase its debt and will require to put on hold others projects or investments. Sure, Disney must now continue its strategy of controlling distribution platforms without SKY, a TV operator that would have given Disney an immediate presence in more than 23 million homes, and not winning SKY will make things a bit more difficult but it also would have increased the total amount of $35 Billion, and i suspect that Bob Iger thought, even if he said that SKY was the "crown jewel" of the FOX acquisition, that there is a moment when you need to be reasonable. Disney, thanks to Comcast strategy already paid FOX $19 Billion more than it wished ( so the equivalent of the amounts that Disney paid for Pixar, Marvel, Lucasfilm AND Shanghaî Disneyland all together! ) and increasing the $71 Billion amount of $35 Billion probably was not reasonable and would have effects on Disney strategy in others divisions. And anyway, thanks to the FOX purchase Disney don't lose everything as it owns already 39% of SKY shares.
Why it's a good news for Disney fans: Remember when Shanghaî Disneyland was built, when SDL cost got higher than expected and when Disney had to put on hold all others expansions projects in all Disney theme parks? Well, you can't spent huge amount of money everywhere without reaching the point where you have to make choices, right? I already doubt that the $71 billion FOX purchase won't have any effects on others Disney divisions, but if Disney would have paid $35 Billion more for SKY - and in cash! - you can be sure that we would have reached the point of no return for quantities of others projects, including theme parks additions, and this for years.
So, for all these reasons, it's probably better that Comcast won the battle, and Disney had even a sweet revenge as thanks to the last minute auction Comcast had to pay for SKY many more billions than expected - just like Comcast did with Disney for FOX. And by the way, the story is may be not over yet as "a CNBC source familiar with Comcast's thinking told CNBC they expect Comcast to begin talks regarding Disney potentially selling its Sky 39% stake to Comcast. Comcast could also sell its 30 percent stake in Hulu, the American online entertainment service, the source added."
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