| Author |
Message |
    
jjkatz
Citizen
Username: Jjkatz
Post Number: 7
Registered: 12-2003
| | Posted on Wednesday, February 11, 2004 - 3:46 pm: |     |
http://money.cnn.com/2004/02/11/news/companies/comcast_disney/index.htm?cnn=yes
NEW YORK (CNN/Money) - Comcast Corp. made a surprise, unsolicited offer to buy Walt Disney Co. for $54 billion Wednesday, a deal that would create the world's biggest media company.
Well gee, that's odd. They just sent me a letter explaining how the increased cost of providing their lousy TV reception was making it necessary for them to raise our rates yet again. I wonder what mattress they found this $54 billion under. I just sent them a little note of my own. |
Sylad
Citizen
Username: Sylad
Post Number: 217
Registered: 6-2002
| | Posted on Wednesday, February 11, 2004 - 4:02 pm: | |
It is a stock for stock merger in which Comcast would issue 0.78 of a share of its Class A voting common stock for each share of Disney |
Cato Nova
Citizen
Username: Cato_nova
Post Number: 47
Registered: 12-2003
| | Posted on Wednesday, February 11, 2004 - 4:12 pm: | |
I assume the ever-watchful Mr. Powell will exercise the same level of scrutiny with respect to this proposed transaction as he would Ms. Jackson's nipple. |
DrFalomar
Citizen
Username: Drfalomar
Post Number: 146
Registered: 7-2003
| | Posted on Thursday, February 12, 2004 - 12:16 pm: | |
Here's a speculation: If Comcast does buy Disney, I wonder if they would find it worth their while to make ABC a pure cable station instead of a broadcast station, cutting loose their affiliates, and demanding that subscribers (and other cable providers) pay for the station like the YES network. They could also remove it from FCC scrutiny and turn it into something more provocative. |
bix
Citizen
Username: Bix
Post Number: 72
Registered: 5-2001
| | Posted on Thursday, February 12, 2004 - 12:41 pm: | |
Yeah, then they could show Minnie Mouse's nipple. 
Don't mice have like 8 nipples or something? woo hoo!
|
Hank Zona
Citizen
Username: Hankzona
Post Number: 957
Registered: 3-2002
| | Posted on Thursday, February 12, 2004 - 12:41 pm: | |
cable companies are regulated in that they cant have too much of a percentage of the total market (only monopolies in specific markets). So how do they raise rates? They buy premium cable channels...and jack up the rates for those. What premium cable channels does Disney own other than Disney...ESPN. Bingo...they will charge the other cable companies more per month to carry ESPN (already close to $3 a month charge) and other premium channels. Thats where their growth will be...cable subscriptions themselves are flat and again, I believe they are limited in how much of a percentage of the overall market they can own. |
Tom Reingold
Citizen
Username: Noglider
Post Number: 2122
Registered: 1-2003
| | Posted on Thursday, February 12, 2004 - 2:35 pm: | |
Hank, doesn't that eventually become a zero sum game once power has consolidated to very few competitors?
Tom Reingold the prissy-pants
There is nothing
|
Chalmers
Citizen
Username: Chalmers
Post Number: 40
Registered: 3-2003
| | Posted on Thursday, February 12, 2004 - 3:10 pm: | |
According to analysts, the cable market is basically saturated and their main business pressure is the steady drain of customers to DirecTV and other satellite providers. (Almost every Comcast commercial involves "real people" whose lives were purportedly ruined by getting a dish.)
By purchasing the Disney/ABC, Comcast is trying to stop the exodus to satellite providers by threatening to yank Toy Story, The Bachelorette, ESPN, ABC Family, etc., from dish-watchers. |
johnny
Citizen
Username: Johnny
Post Number: 827
Registered: 5-2001
| | Posted on Thursday, February 12, 2004 - 4:01 pm: | |
I would imagine Federal regulators would have many questions about this merger. Comcast and/or Disney may have to shed some assets. |
Hank Zona
Citizen
Username: Hankzona
Post Number: 958
Registered: 3-2002
| | Posted on Thursday, February 12, 2004 - 4:22 pm: | |
Johnny,
Disney doesnt own any cable operators, just the channels, so it wont extend Comcast's reach, just their ability to raise rates for the channels they own and other cable operators pay for. A friend who wrote a piece in the Journal today about this told me that ESPN may account for as much as 20% of Disney's profits. The timing may be good too since Roy Disney and some shareholders want Eisner out, they just lost Pixar and the cable industry has been flat for some time now. The article stated that from a regulatory standpoint, the deal should go through, but that perhaps the government might see it as a good time to get concessions on the local municipality monopolies that have been allowed.
Tom, the gains come as I see it from raising what you charge other cable operators to carry your stations. They in turn do the same, so everyone gets their increase eventually. And it works nicely when your cable provider says the increase isnt because of them, but from "other cable companies/networks increasing their prices to carry the stations". Of course, the cable operator who owns the more desirable cable stations stands to make more. I would think ESPN and some of Disney's channels are prime holdings in the cable world. |
Tom Reingold
Citizen
Username: Noglider
Post Number: 2128
Registered: 1-2003
| | Posted on Thursday, February 12, 2004 - 4:37 pm: | |
OK, so the gain is that in the end, the industry will get to charge more for the same crapola.
Tom Reingold the prissy-pants
There is nothing
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johnny
Citizen
Username: Johnny
Post Number: 828
Registered: 5-2001
| | Posted on Thursday, February 12, 2004 - 11:40 pm: | |
Hank,
I never said Disney owned cable operators. Regulators may have issues with Comcast controlling content, programming, channels, and distribution for many premier cable properties. |
Hank Zona
Citizen
Username: Hankzona
Post Number: 961
Registered: 3-2002
| | Posted on Friday, February 13, 2004 - 7:16 am: | |
Johnny,
I never said you said Disney owned cable operators..I was just continuing on from the point of your post and making an additional comment. I think the regulators in this case arent guaranteed of doing anything but in light of the press the FCC has gotten lately, you may be right and they may go after this case to get some sort of give-backs or concessions. Breaking the municipality monopoly somehow would be a nice place to start. |
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