When Disney announced their massive $52 Billion acquisition of 21st Century Fox, I had a hunch that there would be rough waters ahead with federal regulators. Now there's talk that the deal may not go through based on how AT&Ts bid to take over Time Warner is going. And with it, Comcast is emerging as a likely replacement. But won't that offer the same problems?
The issue is revealing the coalescing of the industry as major corporations continue to buy one another. Concerned, the US Department of Justice has taken the move block AT&T's Time Warner merger based on anti-trust concerns. The feds did something similar when the wireless carrier attempted to buy T-Mobile several years ago. That proved to be a very expensive misstep on AT&Ts part.
“Disney is already preparing itself for a Comcast topping bid and considering responses in case, according to multiple
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The end result of which, could ultimately have an impact on Disney's merger with Fox. It also means that Comcast may emerge as an unlikely player in the whole mess. CNBC reports that Comcast may be preparing to become a competitive suitor for Fox, and a bidding war could erupt. "Comcast executives suggested to [Fox founder Rupert] Murdoch last year they would be willing to pay significantly more for Fox's assets than what Disney was offering," the report says.
CNBC also says that being fearful of regulatory concerns by the federal government, Murdoch opted for Disney's offer. But my question is, would there really be that much difference between the two? Comcast, which had abandoned its own effort to buy Time Warner, owns Universal Studios and NBC's broadcast and cable networks. It's also a silent partner in Hulu's streaming network. That sounds pretty similar to Disney to me. Granted, Disney's reach is probably bigger from a theme park perspective, but not by much, as Comcast is a dominant player in the cable
By the acquisition, Comcast was clearly investing in content; this is a huge transformation for Comcast. This acquisition signals that they want to get bigger ...
Disney is the epitome of children’s entertainment. Disney serves as one of the largest sources of
The proposed merger between Comcast and Time Warner Cable would make it the largest provider of cable in America and give it unprecedented market power and allow it to continue to pursue profits and the cost of consumers. While it would not be a monopoly, it would be giving the company dangerous power. Already Comcast has control of one of the largest media providers in America, NBC. It has significant control of internet as well, and has made Netflix pay Comcast to have faster speeds. The question now isn’t if the merger will be bad for business, it is if the United States government will make the right choice for
It allows opportunities to combine the performance of certain activities, thereby reducing costs and capturing economies of scope. This is done by acquiring IP that is underexploited or unused by the owner. They have opportunities to transfer their skills, technology, or intellectual capital from on business to another. This is yet again done through media networks, parks and resorts, and also their studio entertainment. All of which allow them to go globally. Along with the opportunity to transfer skills and technology, they can use their brand name across multiple product or service categories. This is seen in the multiple IP networks, studio entertainment, multiple resorts and parks that are all around the world, and lastly, in their consumer products that were ranked number one in 2011 for being the largest licensor of character-based merchandise in the world. Value chain match-ups seen in primary activities are inbound logistics, operations, outbound logistics, the marketing/sales, and service. All lead to support activities such as technology, human resources, and general administration. Opportunities for skills transfer is seen in the media networks, parks and resorts,studio entertainment, and consumer products. Disney Company can share iconic Marvel characters in their parks/resorts, movies, and consumer products, due to buying the IP to Marvel and it does not stop at just Marvel ABC and ESPN are also involved.
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
[1] Information was mainly taken from the Harvard Business Case Study “The Walt Disney Company: The Entertainment King”
This case provides a brief history of management conflict and change at Walt Disney Company. Former CEO Michael Eisner was considered to be controversial because of his abrasive style and tendencies toward micromanagement. It was this style that strained several important relationships to the Disney Company. Though his reign as CEO during the 80’s and 90’s helped advance Disney Company, it was his conflicting management style that led to his demise and the beginning of Robert Iger’s epoch at Disney. Since Iger has taken the helm as CEO Disney was ranked 67th in the Fortune 500 list for largest companies, it has become the largest media conglomerate in the world, and relationships and disputes stemming from Eisner have been reconciled.
The rumored deal would include 21st Century Fox’s cable networks, its film and TV studios, Foxtel the Australian outlet, Sky, an enormous British pay-TV company, as well as a controlling interest in Hulu (The deal would give Disney 60% ownership of the streaming
On December 14, 2000, the Federal Trade Commission approved the planned merger of AOL and Time Warner after both companies pledged to “protect consumer choice” both now and in the future. The AOL Time Warner merger was approved by the Federal Communications Commission on January 11, 2001, and is the biggest merger in corporate history, then estimated at a total market value of $350 billion. The merger created a ‘powerhouse’ of new and traditional media. AOL Time Warner has led the union of the media, entertainment, communications and Internet industries. Throughout the years the face of media and entertainment industries has changed drastically as a result of increased technology. The popularity of newspapers gave way to other forms of media and entertainment such as magazines, television, cable, music, and most recently the Internet.
The entertainment industry holds the immense potential for growth and development. The industry is constantly evolving and Walt Disney emerge as a global leader and recognized as the world’s second largest media conglomerate in the terms of revenue after Comcast. The Walt Disney Company is a multinational entertainment conglomerate headquartered at California, United States. The company integrated its products into five target segments are as follows: (1) Media Networks (2) Parks and Resorts (3) Walt Disney Studios (4) Disney Consumer Products (5) Disney Interactive. The company has strong diversified product portfolios and generate high returns and revenues from all the target segments but the media networks contributes
In conclusion, Disney appears to be a very strong company financially. They do not have any major red flags. Their liquidity ratios and other information does not seem to be alarming in any way. They have been around for many years and are extremely successful, so any obstacle in their way will not be an issue. They will be able to work through it and bounce back from it without a problem.
In fact, some of the biggest threats to the company’s growth are the government’s regulation that increases the risk to the underlying business. In addition, the risk of losing the exclusive contract for the iPhone would be a major loss for AT&T. Most of the consumers choose AT&T because of their exclusive contract for the iPhone. Hence, this loss of business will significantly influence the AT&T's profitability and revenue. Moreover, the antitrust authorities play an important role on approved the merger of AT&T.
Through the ratio analysis, we can conclude that Disney is a stable company, keeping up with industry trends and up to par with industry averages. Although at times it can seem that Disney is a risky and unstable company, those conclusions are false since the unstableness has come through decisions which will better establish Disney’s position on the market. Although Disney’s competition, namely CBS, is on a similar standing as Disney when comparing ratios, Disney will manage to remain the largest media conglomerate in the USA and one of the best corporations in the world.
Disney is the parent company for many of societies favorite brands and products on a global scale. After doing research I can honestly say that the Disney brand owns almost every media outlet. According to PBS “The Walt Disney Company is the third largest global media conglomerate. Its FY 2000 revenues topped $25
Second chance given when people made honest mistakes or fail, but Robert Iger has zero tolerance to those who loss their integrity, break the law or lapse of judgment. By establish ethics for the company's employees, they can prevent the scandal and negative news which will damage the company's image and profit. Beside that, Robert Iger himself also take risks and chances all the time. He oversaw the acquisition three of the entertainment industry greatest storytelling companies in the world, Pixar (2006), Marvel (2009) and Lucasfilm (2012). With combine with latest technologies, Mr Iger has made Disney the industry leader through its creative content offering across new and multiple