Disney buys BIG!!

[dan and scott]

According to todays Orlando Sentinal website Disney just bought Fox Family Network $3 billion cash/2.3 billion debt.--the rummors were true.


Dan and Scott

 

[Banzai]

So when can I start to get the "Disney Family Channel"?

~Brad~

 

[DanG]

I read several articles in the WSJ and Industry Standard questioning the price paid by Disney. While the most quoted statistic was that Disney bought the Fox Family channel's 81 million viewers, in fact nowhere near that number of people actually watch the channel.

What Disney bought was ACCESS to that number of viewers through FFC contracts with numerous cable companies nationwide. FFC has never turned a profit or drawn an appreciable number of viewers (have you ever watched anything on FFC? Me neither!). Disney still has to build that brand (or whatever substitute brand they introduce) through programming and extensive marketing to drive traffic to that channel. Given those efforts, one could conclude that if Disney believed they needed another channel, they could have built it, leveraged existing resources to pressure cable companies into access, and gotten the same thing for substantially less money.

Disney's business practices have long been criticized in this forum for deviating from the core customer values that drew loyal customers to the brand. You can also criticize what they have done over the last five years from a business perspective. With the purchase of FFC, Disney vastly overpaid for a crapy property and will continue to hamstring itself from improving their core themepark and movie production franchises.

One hopes that the board will read its obligations to the company and actually do their job and dump Eisner before he finishes running the company into ground through mindless, unfocused growth.

But that's just my opinion.

DanG

 

[Another Voice]

Very well put, DanG.

This deal was turned down by every other media company and everyone around generally considers that the only reason Disney made the purchase was to "prove something" to Wall Street. What they were trying to prove is open for debate and there's a lot of snickering out here in Hollywood this morning.

 

[Sarangel]

That's easy, AV. They've proved that Eisner is still loyal to his broadcasting roots.

I can't tell you all how disappointed I was when I heard this news. I was really hoping that Disney would buy something to improve their brand and status, and I don't feel that this is it.

Sarangel

 

[crazy4wdw]

According to an article in USA Today, the Fox Family Channel
will be changed to the ABC Family Channel.

 

[Captain Crook]

What I read was that both AOL/TWX & Viacom were in the bidding for Fox Family as well, further, initial reaction from Wall street seemed favorable.

Disney will rename the channel ABC-Family and also will be airing up to two baseball games per week plus playoffs via ESPN. It seems like it can be a pretty good fit...The biggest downside (IMO) is the Pat Robertson programming, which Eisner praised as "quality" & "profitable"...But then he (Robertson) is contracted to remain, so what else would he (Eisner) say?

Additionally, the deal was seen as making Disney number one in basic cable subscribers and as a boon to worldwide brand promotion...

Also, Disney said this purchase should boost advertising revenues by 50% within two years without much of an increase in pogramming costs...

 

[JeffJewell]

...whether or not to believe Eisner's quote about Disney being a "content" company.

Also, Disney said this purchase should boost advertising revenues by 50% within two years without much of an increase in pogramming costs...

Turns out his pants were on fire.

Jeff

 

[DVC-Landbaron]

Hey Jeff,

How long was his nose?

 

[Another Voice]

Early “rumors” about the latest addition to Michael’s empire:

New programming is bad, but old stuff is good.
The channel will broadcast syndicated shows, repeats of ABC programming, old Disney Channel programs (now with commercials!), leftovers from ESPN, and over 1600 hours of material purchased from Saban. The world will rest better tonight knowing that both ‘The Power Rangers’ and Drew Carey still have a home.

Operators are standing by now!
The deal not only includes continuation of ‘The 700 Club’, but also expands the number of programs to be produced by Pat Robertson. Given Mr. Eisner’s political leanings, let me be the first to offer a $100 reward for the first confirmed photograph of Michael Eisner watching Pat Robertson on Disney’s very own network.

Where still number three, and proud of it!
Disney’s share of the basic cable market is still well behind AOLTimeWarner and News Corp. If some rumored deals go through, Viacom will soon pass Disney even after ABC Family.

Ignore the man behind the curtain!
No one – I mean no one – can substantiate the claim that ad revenues will increase by 50% without additional costs, especially in this ad environment. Early analysis shows Disney paid 35 times earnings for Fox Family. Yea, I think two baseball games a week are worth that. And all those repeat showings of ‘Millionaire’ will bring Corporate America flocking to buy time.

From the producers of the Internet Bubble!
Some of the Wall Street analysts are making good noises about the deal, but then they like anything that will generate more mergers and acquisitions. The business people around this town are laughing at Disney. The feeling is that Eisner has been had (far too much for far too little) and that this is admission that Disney is no longer able to generate compelling content. No one is picking up any of Disney’s internally created channels (ToonDisney, Playhouse Disney, Fashion, E!2, ESPN Outdoors, ESPN Extreme, Disney Channel 2, etc.) and so Disney has to buy access to the public.

Michael will sell the rope to hang the mouse.
Do you know what Fox is going to do with $5 billion? They’re going out to buy Direct TV – putting all those eyeballs firmly under their control. Who’s going to watch ABC Family if none of the satellite or cable systems carry it?

Why did this happen?
Disney’s management has lost confidence in itself. They are reverting back to what they think they know best (ABC Television - both Eisner and President Igor worked for ABC pre-Disney) instead of what Disney knows best (motion pictures and theme parks).

Lastly – one last highly unconfirmed rumor from late today. It seems that Roy Disney’s camel may have sustained a spinal injury of some sort. We’re waiting for word from the hospital now.

 

[Captain Crook]

AV...I really have nothing to say except your last post was very good! I enjoyed it immensly.

Welcome back Jeff!

 

[*Robin*]

I'll second that CC!

 

[DanG]

AV, all I can say is "Wow!"

That has to be the most concise summary of the deal, its problems and consequences I have read.

Simply, this deal is going to accelerate Disney having their a**es handed to them by the other networks, cable companies and Fox. By trying to do content and broadcast distribution, Disney is doing both poorly, at the cost of alienating some of the most absurdly loyal fans in the world.

One can only hope this hastens Eisner's departure.

DanG

 

[swinginevilmike]

I'm reminded of an interview with Eisner where he basically kissed Steve Case's butt. Since AOL/Time-Warner was bidding againist Disney I think it was a clash of egos Steve vs Mike. In the interview he praised and even hinted bordeline jealousy over the buisness moves Steve has made building up AOL from the ground and then acquiring Time Warner which was a great move. Eisner screwed up the GO network and he realized he wasn't as good as Steve Case was. So now anything AOL/Time-Warner(Steve Case) wants Disney (Eisner) wants even if it means paying an outragous sum for pathetic station which has like maybe 3 viewers...Oh well...Now they'll be diverting money from the parks to cover the debt from this purchase...I really can't see Eisner staying in power much longer.. How long can the stockholders put up with this...Shares are hovering around 27 dollars....that can't be too good...