Big Rumor: Bloomberg reports...

[Captain Crook]

Bloomberg.com has reported that Disney is in desperate need of an acquisition or face being taken over itself.

Wild speculation spoke of a Micosoft/Disney merger...

Eisner is slated to give a speech at a big executive meeting in Sun Valley later this week. Attendees usually include Bill Gates, Warren Buffet and the like. His appearance is notable because this meeting is where Eisner first offered to buy ABC/Geocities...

Big & scary stuff. Which way will it go? Which way should it go?

NOTE/HELP: Anyone who can link to this article please do so. I don't seem to have this mastered yet...PETER

 

[F.C. Fan]

Disney + Microsoft = bye bye Pixar

 

[hopemax]

I think I would like to be a fly on the wall in this meeting.

I wonder about things like the Eisner/Buffett relationship since in 1995 Buffet helped with the ABC deal, and Buffett has since sold off his Disney holdings.

Anyone know what precipitated that?

 

[Another Voice]

These meetings happen fairly regularly – kinda of a summer camp for the capitalist ruling elite. Eisner had been looking to buy a network long before the CapCities/ABC deal was offered. Mr. Eisner was going after CBS but no one trusted his ability to run a network and he couldn’t get financing. Buffet’s intervention with CapCities (and a non-small profit for himself) helped Eisner avoid taking the deal to Wall Street.

There are a lot of rumors still flying out there, none of them are worth repeating here because they seem more like speculation (and wishful thinking). But I can say the Mr. Eisner is pleading for Pixar, but the company’s primary asset will tell anyone who asks exactly where Mr. Eisner can put this director’s employment contract should a takeover occur.

 

[airlarry!]

AV:

Wouldn't this be the perfect poison pill? Name that person at Pixar who shall forever be nameless as the new director of Animation at Disney/Pixar, and choose somebody equally as visionary and fearless to head the parks.

BUT.

With contracts that allow them to split should a takeover happen. Therefore scaring off Microsoft et al because of the potential of losing the creative spark behind the company.

I of course sarcastically think to myself that Eisner would not be a good choice as the poison pill himself.

 

[Ocean]

Originally posted by F.C. Fan
Disney + Microsoft = bye bye Pixar

Not necessarily, or at least not immediately. If I understand the 1997 Disney/Pixar deal correctly, Pixar agreed to produce five additional films for Disney. "A Bug's Life" and "Monsters, Inc." are the first and second films under this agreement. According to the terms of the agreement, anything that is a derivative of the original will not count as one of the five. Therefore "Toy Story 2" did not count, nor would something like "Monster's, Inc. 2" if it were produced.

 

[F.C. Fan]

Ocean

The reason I said that is because of Steve Jobs (of Apple) Chairman and C.E.O. of Pixar.

Plus I remember hearing or reading something similiar to what Airlarry! posted that they(Pixar) could get out if a takeover was to happen.

 

[JeffJewell]

the company’s primary asset will tell anyone who asks exactly where Mr. Eisner can put this director’s employment contract should a takeover occur

...is there any indication that Eisner can identify that asset, and that he values it?

His history suggests that Eisner might believe the name "Pixar" is the asset, not the talent, recent spin jobs in the financial press notwithstanding.

Jeff

 

[Captain Crook]

First of all, I agree with Hope, I would love to hear Eisner's speech and listen to the lunch conversation!

This is a sad commentary on my life, but I slept poorly last night thinking about a non-independent Disney. I know we've discussed this before when I expressed my fears of a Yahoo-DisneyLand, but suddenly I'm worried again.

I, like Landbaron, am mostly concerned for the Parks, which as Passholders I consider "my domain." Wih Eisner's tenure I have built up loyalty for his charge and I'm not sure I could transfer that loyalty to a Microsoft division head, or a board more concerned with widgets than entertainment. I know I'm being mellow-dramatic, but who else am I going share my lunatic ranting with???

 

[Bork]

Captain Crook,

I think your fears are well founded. Who knows how much a new owner would put into the parks? Things may not be great now, but they could get worse. (Six Flags over Disneyland *Shudder*).

Just look at the Vivendi Universal deal. Vivendi has deep pockets, but they aren't exactly pumping any money into the theme parks. Originally, it was rumored that they may not even want the parks. It doesn't look like they will spend anything on the parks in the near future.

 

[Sarangel]

Captian - I've taken the liberty of editing your post so you can see how links are formatted. This is an interesting article, that completely glosses over the question of whether or not Disney, in order to remain the brand we all love (to one degree or another), needs to become a bigger conglomerate.

I sometimes wonder whether the businesses drive Wall Street or if the analysts drive the business.

Sarangel

 

[larworth]

Some say do, some say don't, let's call the whole thing off.

My reading of the article was only that there is a wide diversity of opinion on whether they need to acquire/merge and, if so, with what type of partner.

I hope Esiner was sincere when he recently said that they no longer felt compelled to make another major acquisition. That the value of their content would receiver whatever fair value it merited without owning every distribution channel.

One never likes to see major consolidation in another point of their value chain. However, all too often the profit shifts that MIGHT occur never justify the premiums, and dilution one endures to acquire a position here. I don't see the Comcast-ATT deal as a major threat to Disney's long-term existence.

The street loves to play the "because someone did it game". A microsoft-Disney deal to match Time-AOL? What core competency does either Disnery or MS bring to the table that will help growth the other person's business.

I'm still trying to figure out just who much real synergy the old Disney and ABC have gotten.

 

[drusba]

Disney and Microsoft!? That would be the ideal match. Disney parks would get many new, creative, computerized rides and attractions which would all work perfectly except for the occassional crash killing everything that is in them.

 

[larworth]

Right, and Eisner can council Gates on how not to have embarrasing internal comments come out in public court proceedings.

 

[yensiD tlaW]

HEY!!
Lets merge with Walmart. This way that little Zoro/smiley face dude can slash the prices of food at the parks and sell us some low quality merchandise.

 

[ztbz]

I can see Micro$oft Buying Disney, But not Disney Buying Micro$oft as I belive Micro$oft is much
Bigger then Disney money wise that is.

 

[jimmybop]

It wont happen, Microsoft is partnered with NBC (hence the station MSNBC)

 

[Galahad]

I agree that it probably won't happen, but there are plenty of examples of "smaller" companies buying larger ones. Also, Microsoft can divest it self easily of the NBC partnership....this kind of thing has happened before too. Disney is already partnered with Microsoft on some ventures. Not sure Disney needing to divest of its internet portals is all that bad.....

 

[Captain Crook]

Hi Galahad!

Anything can happen. Right as we speak little Comcast is manuevering to buy giant ATT. It can happen, it depends on corporate personality & deep pockets...Disney has the ability and money to be a shark in these waters, whether it plays well with the image I don't know.

I read the review of the meeting Eisner was at and the big news was Eisner's trying to form a coalition with other content providers to block potential access problems. Eisner spoke with Vivendi, Barry Dillar and others. The consensus is that a coalition is a longshot as ego's always get in the way, BUT Eisner (and the others) are very nervous about the lock AOL & other access providers could put on them.

IMO, look for a big surprise move soon.