Comcast "Would never sell the parks"

[Peter Pirate]

In a Reuters article Comcast Charman Stephen Burke said they would probably keep the Parks rather than sell them off. Analysits said risking sale of the parks, the most visible Disney face , would be risky. Further, Burke said they would be inclined to spend on updating the parks so they could be utilized to their most potential. The analyist stated that selling the Parks (and their characer interaction) would be a big mistake.

Comcast continues to say the right things, but of course Burke knows Disney.

Who will be the next suitor?

Will Eisner be reelected?

Will the stockholders take the money and run?

What a soap opera.

 

[GrimGhost]

from Reuters:
Industry sources say Comcast would never sell the parks and risk alienating the children drawn to the parks by Mickey Mouse, Donald Duck and the other characters.


"The Disney theme parks, unlike Universal or SixFlags, are a Disney product, and have that cache. It's the perfect family fare and the parks have no value without the Disney characters," said Ritholtz.

Also.....
Another incentive for Comcast to keep them is just how hard it would be to sell them, analysts said.


Any buyer would have to negotiate a cumbersome license in perpetuity for the rights to the names and characters, Cathay Financial analyst Andy Baker said.


"They wouldn't want to sell rights for Mickey Mouse and the other guys, and what's a Disney theme park without them?" said Maxim Group's Ritholtz.


"My guess is that Comcast will keep it all together."

 

[MELSMICE]

My HOPE is that this doesn't happen!

 

[MELSMICE]

It's better than a SOAP!

 

[ddank]

While their customer service is lacking comcast knows how to put on a show and understand you need to spend money to make money. Lets just hope Pixar swoops in and steals this away from everyone. Rumors are they are considering it. Either way fresh blood and rejuvination is what this company needs. I cannot believe so many are opposed to this. When did comcast become the enemy?

 

[Sarangel]

Two nearly identical threads about Comcast & the parks. I've merged them together.

 

[KNWVIKING]

***"Further, Burke said they would be inclined to spend on updating the parks so they could be utilized to their most potential."***

So..... how do you like your crow prepared ?

Just kidding. Burke is saying all the right things, but I'd sure like to ee it written in an iron clad contract.

 

[raidermatt]

I'd love to see that too... But we can compare to what Disney is saying:

"We fundamentally believe that we can continue to drive and grow the business to our existing properties, which still (have) substantial growth opportunities ... with significantly below $1 billion a year in capital investment," he said. "We expect to keep capital spending in our domestic parks meaningfully below $1 billion a year for the foreseeable future."

Its not that I buy all this from Burke, but then again, at least there's the possibility that he's not full of it. Disney doesn't even have the courtesy to lie to us anymore. They are like Kevin Bacon in Animal House... "All is well! Remain calm....."

I think the logic behind them keeping the parks is sound, but there are still ways it could not happen.

We have Comcast, but I honestly can't comment on their customer service as I haven't had to call them. The last time I did, it was still AT&T.

But I can believe that their customer service is not what we would want from Disney. Its a different circumstance completely, however.

Should this takeover happen (or should it be another buyer), the key is not necessarily how they handle their current business, though certainly that is important. What is more important is if they recognize how DISNEY'S businesses should be run.

For example, I'd be a lot more interested in knowing how Comcast runs the Flyers, or any other ancillary businesses they have. Do they have "cable-level" customer service? Or do they recognize the differing needs of differing businesses?

 

[KNWVIKING]

***"For example, I'd be a lot more interested in knowing how Comcast runs the Flyers, "***

The Flyers are one of the few profitable teams in the NHL and they have a very high payroll. Management ha virtually a blank check to get the players it needs. Remember, in Philly they boo Santa Clause but they don't boo the Flyer's. Winning the cup is the only goal, not "value for our shareholders".

Did you read the letter Baron posted over on Jeff's board ? Very encouraging.

 

[Peter Pirate]

...I'd be a lot more intersted in how Comcast runs the Flyers, or any other ancillary businesses they have.

But at 47% of their being, Disney will be much more than "ancillary". Which makes me ponder over something Voice (I think) said, that perhaps a Comcast name change to Disney may be a possibility...I have no idea how this makes me feel or how it would change things. Certainly the reality says that Comcast still bought Disney but the fact that they see more "future" in beng called Disney must say something...I just don't know what.

 

[raidermatt]

Yes, I did, and I also found it encouraging.

 

[crusader]

Burke is not the one calling the shots - Roberts is.

Listen carefully to his interview on CNBC yesterday. Pay very close attention to how he fields the parks issue.

Also, you'll find it interesting that his family only owns 1% of the stock but retains 33% of the vote. Add in Microsoft's 7% and one other big investor I can't recall and we don't have any shareholder consent issues. What a nice little arrangement.

(scroll down to the streaming video link)

http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P74631.asp

 

[warpdarkmatter]

when was the last time anyone had fun dealing with a cable company? with all their extra fee's ? you will be paying a extra $ for ketchup with your fries!

 

[Doug123]

Originally posted by ddank
While their customer service is lacking comcast knows how to put on a show and understand you need to spend money to make money. Lets just hope Pixar swoops in and steals this away from everyone. Rumors are they are considering it. Either way fresh blood and rejuvination is what this company needs. I cannot believe so many are opposed to this. When did comcast become the enemy?

Comcast is the enemy to so many people because they've had to deal with them for their cable service. Can you actually imagine service improving or remaining at the same high quality if Comcast too over? I don't think so.

Also, how can you believe anything the head of Comcast is saying at this point? He could bluntly say he won't sell the parks, and then turnaround a do so in a year because "conditions have changed" or something. At this point, anything is possible.

 

[hulabird]

I have Comcast cable right now and love it so much that I am considering getting a dish.

 

[MELSMICE]

Originally posted by Doug123
Also, how can you believe anything the head of Comcast is saying at this point? He could bluntly say he won't sell the parks, and then turnaround a do so in a year because "conditions have changed" or something. At this point, anything is possible.

I believe that is exactly what would happen. At that point, what could be done about it - nothing.

It happens all the time in every aspect of life & I don't believe for one minute that big business is any different.