Disney Really IS Interested in Vivendi

[Another Voice]

Guess what – this was just sent to me:

“Disney says would look at Vivendi assets
By Doug Young

LOS ANGELES, Aug 7 (Reuters) - Walt Disney Co. (NYSE: DIS - News) Chief Financial Officer Tom Staggs on Wednesday said the media giant would consider scooping up any assets of debt-riddled rival Vivendi Universal (Paris:EAUG.PA - News) that are within Disney's core businesses.

"Any assets that are in our core business that come available, we would certainly take a look at," Staggs told Reuters when asked whether Disney might consider acquiring any Vivendi businesses.”

“Vivendi Universal's media crown jewels include Universal Studios film and TV production company, cable TV network USA and the world's No. 1 record company Universal Music Group.

It owns the Universal Studios and theme parks in Florida near Walt Disney World and in Los Angeles. Staggs did not rule out the possibility of taking on one or both of those parks either.”

Just when you thought you had heard everything…


http://biz.yahoo.com/rf/020807/media_disney_vivendi_1.html

 

[mrtoadslastride]

How could they possibly consider this? They would have to take on a similar debt load that apparently has destroyed Vivendi.

 

[raidermatt]

There's another thread in here somewhere on this, somebody found it last night.

I also heard it mentioned on CNBC this morning.

One possibility from another thread was that this could just be an effort to drive the price up for any other bidders...

I'm not sure I buy that, but it does seem strange that Disney would be considering a purchase such as this. Earnings are falling faster than debt, and their credit rating is in trouble again. And if they are having trouble making money with their own parks and movies, why would they be able to better utilize Universal's?

But maybe I'm missing something with my initial reaction?

Maybe the music portion would make sense?

 

[doubletrouble_vb]

No where has it said at what price Disney would buy.

It might be hoping for firesale prices.

 

[Peter Pirate]

Who was it that kept saying last year that Disney would buy Universal??? Oh...That was me...

Stranger things have happened and the price would have to be right, but I see no problem in making it 'Disney's IOA' or 'Disney's US'. They would, in one fell swoop eliminate competetion from their cash cow at a time when things are dropping.

I don't know how it could be structured and I'm sure there would be no regulatory hurdles and I don't know if it's a good idea or not, but it certainly sounds like something Eisner would do, doesn't it?

 

[BRERALEX]

im in awe (a peter pirate post its been awhile)

could they afford two buy the parks?

 

[isnkr]

Would they have to buy the whole thing or take over the majority ownership and rely on investors and other corporations to pump in more cash. Something similar to Japan, France, or China, eventhough they use the Disney name - is Disney the sole financial backer?

I can see the monorail now.....

 

[KNWVIKING]

The cost of the monorail between TTC and IOA/US would be staggering.

 

[meowthew2]

It'd be hilarious. Suddenly all these Disney apologists/Universal haters would just LOOOVE USF and IOA. And how could they possibly explain their hypocrisy?

"Well it's so much more magical with the Disney name on it."

 

[raidermatt]

It'd be hilarious. Suddenly all these Disney apologists/Universal haters would just LOOOVE USF and IOA. And how could they possibly explain their hypocrisy?

With so much real hypocrisy around us, why speculate about more that won't materialize?

 

[Spaceman Spiff]

this is like a bad dream. someone wake me up!


disney, leave UO alone.!!!

 

[Luv2Roam]

Power hungry is the name of the game.