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CNBC: The WarnerMedia-Discovery deal was structured to make a future sale easier

Soap

Soap

Member
Oct 27, 2017
15,170
Nope. I don't like that. I would hope some kind of anti-monopoly rules would kick in if Disney tried to get Warner wholesale.
 
mreddie

mreddie

Member
Oct 26, 2017
44,022
Malone agreed to turn in those shares for common equity because he wanted to give a combined WarnerDiscovery flexibility to sell itself in the future -- most likely to a deep-pocketed technology company like Amazon or Apple or another media behemoth like Disney, according to a person familiar with the matter.
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Oh no...
 
OP
OP
SchroDingerzat

SchroDingerzat

One Winged Slayer
Member
Sep 24, 2018
1,600
EvilChameleon said:
I don't think Disney would buy them.
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It won't pass the EU. The EU was already funny about Disney owning National Geographic and A+E. So Disney had to sell their position in the EU business back to Hearst. If this happened then no way in hell would the EU let them have Discovery.

PanSexual_Peacock said:
Disney can't really afford them right now so I don't think they're realistically in the hunt.
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Just one of many reasons why it won't happen. Doesn't mean that another won't buy them. My money is on Amazon.
 
JimD

JimD

Member
Aug 17, 2018
3,496
Soap said:
Nope. I don't like that. I would hope some kind of anti-monopoly rules would kick in if Disney tried to get Warner wholesale.
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The sheer number of tv networks Disney would control would be a concern. They'd probably have to sell some off to get through regulators. In terms of just content it wouldn't be a problem. Even with all those films and tv series under one company it would still be too low of a percentage of the market.
 
Wubby

Wubby

Member
Oct 27, 2017
3,849
Japan!
I just can't see this working with Disney at all. Apple, Amazon... not really sure who else would be able to afford it. Seems like a better get than Fox was for Disney.
 
BringBackSonics

BringBackSonics

Member
Oct 27, 2017
45,044
Seattle
Honestly Apple makes the most sense. While they have some amazing shows (ted Lasso, All Mankind), adding a catalog like a combined warner/discovery would make that service extremely appealing.
 
Dwebble

Dwebble

Avenger
Oct 25, 2017
9,623
Unlike the Fox acquisition, a Disney/Warner tie-up really should start raising antitrust concerns.
 
thefit

thefit

Member
Oct 25, 2017
6,243
In the end it's big tech that will win. These old companies are stuck in the past or in AT&T's case just mismanaged to hell. Here's a communications company with a literal direct connection to possibly every home in its territory unwilling to see the future being actual high speed broadband. What a waste.
 
jelly

jelly

Banned
Oct 26, 2017
33,841
Damn, that sucks. WB might not be great all the time but nobody is quite like them in big risk and random stuff.

I don't see Disney getting away with it. Amazon probably. MGM who, lol.
 
Dalek

Dalek

Member
Oct 25, 2017
38,911
Disney isn't interested. They're saving up their dimes for when Sony Pictures/Spider-Man is for sale.
 
Mii

Mii

Member
Oct 25, 2017
168
ATT probably wanted nothing to do with dual-class shares here for more reasons than just easier off-loading of the asset - but a future sale was certainly part of the rationale.

Soap said:
Nope. I don't like that. I would hope some kind of anti-monopoly rules would kick in if Disney tried to get Warner wholesale.
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My thinking is Apple (ATV+ still pretty small), Google, or Facebook (maybe Amazon if they can get through HSR despite Prime Video) are AT&T's ideal acquirers instead of Disney or Netflix (probable HSR issues). Even Google and Facebook may trip up on HSR around advertising. ATT and its shareholders presumably would never allow Verizon or Comcast / Charter.

Or maybe new Warner continues a roll-up of AMC Networks, A&E, MGM (basically dead movie studio but with a library), Starz (sold off from Lions Gate) or other currently (or soon-to-be) sub-scale assets. HSR probably wouldn't allow acquiring Viacom / NBC (unless Paramount / Universal and the local stations get broken out, which seems unlikely, and then what really is left of value in a cord-cutting world except maybe Nickelodeon), Sony (similar movie studio issue), or Lions Gate. I think this path is more probable at least for the next 5-10 years.
 
Tobor

Tobor

Member
Oct 25, 2017
28,429
Richmond, VA
It sounds like it's up to Zaslav. That it can be sold doesn't necessarily mean it will be sold.

If I was Zaslav I would sell, take the $115 million and go sit on a beach, but that's me.
 
Maple

Maple

Member
Oct 27, 2017
11,722
I don't want Disney to acquire all of Warner, that would be awful.

But I'll be brutally honest - when it comes to DC specifically, I would rather see it in the hands of the Mouse than with Amazon or Apple.
 
Vic_Viper

Vic_Viper

Thanked By SGM
Member
Oct 25, 2017
29,034
They wont let Disney buy Discovery lol. It will be Apple or Amazon. And imo, that would be for the best. It doesnt seem like ATT has any idea what to do with WB, and letting Discovery take over of the content creation was the first actual good step they have taken since buying WB. If Amazon or Apple were to buy Discovery, they could end up having a real competitor to Disney. Maybe then we will finally get someone who can steer the DCU stuff in the right direction lol.
 
SquirrelSaysNuts

SquirrelSaysNuts

Banned
May 15, 2018
1,898
Denmark
davepoobond said:
oof. If they sell yet again, it would hurt morale considerably. More and more people just get fired.
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"ooh boy. hihi. Hope you got parachutes."
who-framed-roger-rabbit-bugs-and-mickey-flip-off-laser-time.gif
 
ContractHolder

ContractHolder

Jack of All Streams
Member
Oct 25, 2017
16,207
Some of you have built up this mythology for Disney that ironically helps their brand. Like one person here thinks Disney is richer than any other company. Like yes, corporations are not your friend. Don't trust them. But also understand that they aren't gods either.

Disney can't do anything they want. And there's multiple different reasons that you shouldn't expect them to try and buy WarnerMedia/Discovery any time soon. Including, but not limited to current debt, lack of any new type of market not covered by current assests, no situation like Marvel where assets split off are in it, ect. We also have no credible word they are interested in buying. They have no justification to shareholders. And they'd have to go through a ton of legal troubles that would cost them and probably fail.

Could Apple and Amazon try? Maybe. Amazon definitely is looking to grow via MGM news. Apple, if they really want to take entertainment and streaming seriously, could try and fight Amazon considering Apple TV+ is nowhere near the mindshare of other services. Who knows.

But some of you need to chill and wait for evidence to back up these fears.
 
Tobor

Tobor

Member
Oct 25, 2017
28,429
Richmond, VA
ContractHolder said:
Some of you have built up this mythology for Disney that ironically helps their brand. Like one person here thinks Disney is richer than any other company. Like yes, corporations are not your friend. Don't trust them. But also understand that they aren't gods either.

Disney can't do anything they want. And there's multiple different reasons that you shouldn't expect them to try and buy WarnerMedia/Discovery any time soon. Including, but not limited to current debt, lack of any new type of market not covered by current assests, no situation like Marvel where assets split off are in it, ect. We also have no credible word they are interested in buying. They have no justification to shareholders. And they'd have to go through a ton of legal troubles that would cost them and probably fail.

Could Apple and Amazon try? Maybe. Amazon definitely is looking to grow via MGM news. Apple, if they really want to take entertainment and streaming seriously, could try and fight Amazon considering Apple TV+ is nowhere near the mindshare of other services. Who knows.

But some of you need to chill and wait for evidence to back up these fears.
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Tell CNBC, they are the ones who have listed Disney as a potential buyer along with Amazon and Apple.

I don't disagree with you that a big tech company is more likely, but Disney is not being discussed by reputable sources out of ignorance.
 
Merguson

Merguson

Member
Oct 25, 2017
475
Tobor said:
Tell CNBC, they are the ones who have listed Disney as a potential buyer along with Amazon and Apple.

I don't disagree with you that a big tech company is more likely, but Disney is not being discussed by reputable sources out of ignorance.
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I think it's just the author mentioning Disney as an example along with Amazon as who would be interested in acquiring the new company. Not that they have any immediate interest. I think Disney is content to utilize the assets they've acquired from Fox. They were still reorganizing the corporate structure recently.
 
ContractHolder

ContractHolder

Jack of All Streams
Member
Oct 25, 2017
16,207
Tobor said:
Tell CNBC, they are the ones who have listed Disney as a potential buyer along with Amazon and Apple.

I don't disagree with you that a big tech company is more likely, but Disney is not being discussed by reputable sources out of ignorance.
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It said could. The article was inferring that those at Discovery were positioning the company to be bought by a major player. There's a paragraph later that goes into the kind of company they'd like to have buy them.

At best, you could say Disney probably does risk assessments for anything that goes on the market. But that article never actually said Disney was seriously considering it.
 
Shard Shinjuku

Shard Shinjuku

Member
Oct 25, 2017
30,036
Tampa
Tobor said:
I would agree that it would probably be a package deal for all of Warner Discovery, but who knows anymore. Maybe they make more money where they divvy it up?
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I mean it isn't going to be divorced from the larger structure. Maybe they finally give some other entity a chance to make the comics as they almost did in the 1980s but in order to make DC TV Shows and Movies and Video Games with relative ease you need to keep the IP holders in the cards.
 
Tobor

Tobor

Member
Oct 25, 2017
28,429
Richmond, VA
ContractHolder said:
It said could. The article was inferring that those at Discovery were positioning the company to be bought by a major player. There's a paragraph later that goes into the kind of company they'd like to have buy them.

At best, you could say Disney probably does risk assessments for anything that goes on the market. But that article never actually said Disney was seriously considering it.
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Yeah, I don't disagree with any of this. I'm just saying this isn't part of a "mythology" built up in people's minds when the company is literally being mentioned by CNBC.
 
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