Yesterday, postmortems on the Sky purchase by Comcast — over a bid by The Walt Disney Company — was big business
None other than the New York Times reported:
Comcast and the Walt Disney Company have long been rivals. But Brian L. Roberts, who runs Comcast, has recently become the Magic Kingdom’s nemesis in chief.
“For Robert A. Iger, Disney’s chief executive, the loss of Sky and its vast European customer base to Mr. Roberts has to sting,” added reporters Brooks Barnes and Edmund Lee. “But the realities of the entertainment business make the outcome more complicated.”
On Saturday, Comcast outbid Disney, in a deal valued at $39-billion. But one analyst told the Times, “Comcast paid a very expensive price for this, and I think it’s hard to justify.”
Michael Nathanson, an analyst at MoffettNathanson further explained to the reporters, “This doesn’t stop Disney.”
According to the NYT, The Walt Disney Company has several options as it pertains to its own 39% ownership of Sky. Meanwhile, it is estimated that Disney forced Comcast to pay 27% more than intended on its initial offering.
And, by the way — with or without Sky — Disney is still Disney.
As the Times said:
Mr. Iger can still use his world-class collection of content rights — Marvel superheroes, the Disney Princesses, “Star Wars,” Pixar’s beloved characters — to roll out Disney’s planned streaming service (known in industry parlance as an “over the top” business) in Europe.
“They can use their rights to go over the top in the long run in Europe,” Mr. Nathanson said.
Have you been following this story? Is Comcast’s victory important? Or will Disney, as the analyst predicted, persevere? Tell us in the comments.