ATT/Time Warner Deal paves way for Disney-Comcast battle

Cannot see comcast getting this, a cash only deal has difficult tax issues,but i dont see why disney need the deal, im guessing they wil get it over the line though
 


Yep, let the bidding war begin. Rubert Murdoch originally favored Disney because of regulatory concerns, but he recently assured stockholder he would work with the highest bidder, and the ATT/TW decision opens the floodgates. Comcast offer is 19% higher than Disney's and is all cash versus Disney's stock offer. Unfortunately, bids like this mean severe belt-tightening for the winners.
 


Yep, let the bidding war begin. Rubert Murdoch originally favored Disney because of regulatory concerns, but he recently assured stockholder he would work with the highest bidder, and the ATT/TW decision opens the floodgates. Comcast offer is 19% higher than Disney's and is all cash versus Disney's stock offer. Unfortunately, bids like this mean severe belt-tightening for the winners.
Disney is finally spending so that wouldn't be good. They are making a ton of money too though.

i don't really see the advantages for either company. More Marvel movies? No thanks. I do worry a little about FX because I don't think it fits Disney.
 
I honestly don’t see Disney letting this go. I think they’re willing to go up a substantial amount to secure this acquisition. Anyway, no part of me wants Comcast to own fox
 


Yep, let the bidding war begin. Rubert Murdoch originally favored Disney because of regulatory concerns, but he recently assured stockholder he would work with the highest bidder, and the ATT/TW decision opens the floodgates. Comcast offer is 19% higher than Disney's and is all cash versus Disney's stock offer. Unfortunately, bids like this mean severe belt-tightening for the winners.
All cash does have more tax aspects though.
 
I’d rather Fox stay it’s own company but that’s not going to happen. I’d rather Disney have it than Comcast.

I agree.

I think the estimate was 100,000 jobs lost in the entertainment industry from a Disney-Fox merger. Those jobs won’t be saved By Comcast/Universal.
 
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That’s like Disney cancelling your vacation but giving you a $500 gift card to say sorry for the hassle....nice jesture but not what you want
 
That’s like Disney cancelling your vacation but giving you a $500 gift card to say sorry for the hassle....nice jesture but not what you want
Might be if someone else made your vacation costs go from 5k to 7K. You can take a different vacation, but the debt on that extra 2k adds up fast.
 
With Disney wanting to start their own streaming service soon, I feel they want this bad .. just for all the content.
 
At this price, I say let Comcast have it. The debt may cripple your fiercest competitor.[GALLERY=][/GALLERY]
 
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May be a silly question but why doesn't Comcast offer stock to get 21CF?
That is a really difficult question to answer simply. However, at its most basic, the primary suitor for a company generally offers stock because they are the preferred outcome. If you are selling, and your preferred outcome is A, generally you like to own shares of A when all is said and done because you, as the seller, think that A is the best fit and has the most potential to make money by buying your company.

The secondary suitor, who is not such a good fit in your opinion and therefore has less upside potential once the deal closes, tends to offer more in the way of cash. Cash lets you, the seller, decide where to invest. You can choose to invest in the purchaser if you think the potential is still there, or you can choose to take your proceeds and invest elsewhere without first having to sell the purchaser stock.

So at some basic level, it's a matter of expectations and perspective. Now tied in to those expectations and perspectives are dozens if not hundreds of factors that people like me are paid to analyze. There is also, from the buyer's perspective, reasons to offer stock and not cash or cash and not stock. Apple, for example, sits on a massive pile of cash. Why would they trade their stock for an acquisition at face value when they already have more cash than they know how to invest? Comcast, of course, does not have this problem. They have a mountain of debt and will have an even bigger mountain if this deal goes through, but it's possible they are aware Murdoch does not value their stock they same way he values Disney. Or it could be they simply don't own the shares to offer, they way Disney does, and would have to buy back the shares before trading them to Murdoch, and it's simply easier to do cash (this is probably a significant part of the reason, Comcast's float is much closer to their shares outstanding than Disney's percentage wise, meaning Disney owns more of itself than Comcast does. Companies like to own themselves, it allows them to benefit most when the stock goes up).

Anyway, despite my efforts, this is getting long. It's complicated. There are reasons both the buyers and sellers choose to offer or prefer to receive cash or stock and you can fill and entire semester of coursework learning the basics of acquisitions and mergers.
 

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