Might Disney be in the market for Universal?

EUROPA · Apr 30, 2003

Well the French are on the way out. Seems they want to dump Universal before the end of the year. Music seems to be going to Apple. Any front runners for the Stuidos or Theme Parks?

http://www.orlandosentinel.com/busi...0,0,5414224.story?coll=orl-business-headlines

I know that Disney is in debt up to its mouse ears but might they consider buying up the other guys?

Cricket2 · Apr 30, 2003

It says MGM is in the market???????

one_cat · Apr 30, 2003

It may be too much for Disney to bite off but it sure would be great to be able to use our Disney APs at Universal.

Howabout a swap - ABC for the Universal theme parks plus some stock or cash to make up the value difference???

Peter Pirate · Apr 30, 2003

Disney still has the capability of doing anything it wants...The question is how threatend by Universal is Eisner?

I have always predicted a Universal take over by Disney. Maybe now is the time. It would help ME solidify his base and maybe be his one chance at bringing the Company (way) back before he goes...

If this post doesn't bring Voice out I don't know what will...

pheneix · Apr 30, 2003

Forget Disney's capaibilities (although they can't), I would be more worried about the 15,000 employees that don't want to be forced into a union contract.

Planogirl · Apr 30, 2003

I STILL maintain that the best way to shake Disney up is for someone to step up and give Disney a run for its money. If Disney buys Universal then Disney can sink back into its blissful state of inactivity because then there is no one who is really in competition.

I'm holding out for Dreamworks, that is if Katzenberg is still as angry as before.

one_cat · Apr 30, 2003

That would be awesome PlanoGirl - does Dreamworks have the cash?

doubletrouble_vb · Apr 30, 2003

What about Anheuser-Busch...

SAKPEG99OKW · Apr 30, 2003

I am still holding out for Microsoft. Gates has his foot in the door with EPCOT and spaceship earth, the only down fall would be test track... Instead of it being down once a day, it would crash every hour.........

I know not funny, but it's late.

Bob O · Apr 30, 2003

Without competition from Universal then disney is unlikely to add much of anything new in rides/shows. And they would liekly screw up what is good about Universal so disney buying them would be awful news!!!!

Planogirl · May 1, 2003

Originally posted by one_cat
That would be awesome PlanoGirl - does Dreamworks have the cash?

I doubt it but it doesn't keep me from hoping and making silly posts like that one. I saw this rumor surface once somewhere but it was likely just wishful thinking. But wouldn't it be perfect what with Shrek already there...

BobO, welcome back. I couldn't agree more.

Douglas Dubh · May 1, 2003

That would be awesome PlanoGirl - does Dreamworks have the cash?

They may not need it. They'd just have to find someone who does who thinks they could make a lot of money by lending it to SKG. The bigger question is, does SKG have the desire and ability to run resorts?

Of course, there's always a possibility that Barry Diller will find some backers.

Peter Pirate · May 1, 2003

Just because I predict that Disney will buy Universal doesn't mean I think it's a good thing or want it to happen.

I agree that competetion is good for Disney and I don't feel they need this distraction...But, Eisner wants to go out a winner and what better way than to abolish the competetion and be King Of The World in one fell swoop?

Despite my friend phenix's protestations, Disney is very capable of raising the money for such a venture. They're selling the Angels have a hot prospect on the Ducks, money is cheap and they still have lots of financial leverage...Again, I'm not saying this would be a smart move either, but we may be talking ego here...

YoHo · May 1, 2003

Now look, Lets face facts, Disney is Cash poor and heavy on Debt. sure the COULD raise the cash, but would it put them in a better position as a company? I noticed MGM on the list of potential buyers. A company that what a year ago was on the block?

There are a whole heck of a lot of capital improvments and other spending projects that could have been done to save Eisner's resume. Some of them with far more bang for the buck then this. And yet they aren't surfacing. Yes, Yes, Expidition Everest, I KNOW, but that's one item in a sea of mistakes.

I want someone to tell me why Eisner even cares about his reputation anymore?
When he leaves Disney, it'll be for the golf course, he has bajillions in cash. What possible incentive would a man in his position have to give a darn?

Recognize that anyone who responds to this is at the disadvantage of not being a disgustingly wealthy media Mogul and therefore their thoughts are as speculative as mine.

raidermatt · May 1, 2003

If Disney were to realistically pull this off, I think it would take a signifigant shift in business focus... meaning they would need to sell more than the Angels and Ducks. The Angels only went for $180 million, the Ducks will go for less.

Disney's current debt load doesn't seem to be crushing, but it is troublesome and has made borrowing more expensive for them than it was in the past. Adding significantly to that load would most certainly result in another downgrade of their bond rating, making borrowing even more expensive.

Perhaps a dump ABC and expand park ops kind of thing? (Not really seriously saying this is even a remote possibility, given Eisner's desire to be a media mogul, and his distaste for the park ops... just pulling stuff out of available orifices.)

Another perhaps more likely possibility would be a "pimp" move... Partner with somebody else who would run the parks and let them use the Disney name in return for royalties.

Nah, they'd never do that....

caseymaureen · May 1, 2003

I actually heard this same rumor quite awhile ago while still working at the parks. I am very interested in the MGM part though, and it may fit together with another rumor I heard back at the parks. Awhile ago MGM made it clear to Disney that they wanted out of the Studios. I didn't quite believe it until I noticed that the new shipment of Studios merchandise all said "Disney Studios" or "Walt Disney Studios" instead of "Disney MGM Studios." That seemed awfully suspicious to me. Managers had always made sure that the Studios were always referred to as "Disney MGM Studios" with no shortening to leave out either party. Hmm, seems like a fishy time for a turnaround on that policy...And it would make sense that with MGM's stable of classics they may want to acquire some newer hits for a park of their own. This, of course, could be terrible for Disney depending on how it worked out. If they lost the rights to use MGM's films and projects, Indiana Jones, the Twilight Zone, and almost everything in the Great Movie Ride (which there has also been talk of shutting down), the whole park would have to be drastially changed. It seems like there are alot of things that are suddenly coming together to make a little more sense...
1. No more MGM at the studios? (merchandise)
2. No more Great Movie Ride?
3. MGM wants Universal?

pheneix · May 2, 2003

The Orlando Sentinel says that Blackstone may be in the running to buy the Universal parks (hmm, where have we heard that before?).

http://www.orlandosentinel.com/busi...02,0,399013.story?coll=orl-business-headlines

Mr D · May 3, 2003

From what I know Blackstone is the largest theme park consortium in the UK, I am suspecting they have a good chance of stepping into a US market also because of the recent alliance with the UK in Iraq, French and German interests are locked out, if there was an acceptable outside buyer it would be from the UK or possibly Japan, has anybody considered that the Oriental Land Co. has been making a ton of money from the successful TDS?

Put that same quality into IOA or USF and it would definately jumpstart developements in WDW.

Or OLC could partner with Katzenburg.......

HorizonsFan · May 3, 2003

I am suspecting they have a good chance of stepping into a US market also because of the recent alliance with the UK in Iraq, French and German interests are locked out, if there was an acceptable outside buyer it would be from the UK or possibly Japan

Why would French or German interests be locked out of buying Universal from a French company?

YoHo · May 3, 2003

Honestly, I wouldn't be surprised if Disney yanked OLC's agreement with them if they made any plans to purchase Universal. I wouldn't put too much faith in that, Plus, TDL isn't hitting projected numbers this year and OLC's real business concerns aren't exactly in tip top shape.

Might Disney be in the market for Universal?

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