Disney Finds Sky is the Limit as Comcast Wins Bidding War

Walt Disney Co. (NYSE: DIS) was outbid by Comcast (NASDAQ: CMCSA) in bidding war for British telecommunication company Sky on the 22nd of September. Comcast out-bid Disney by USD 3.6 Billion in a three-round auction process with a total bid of USD 38.8 Billion. Disney, which bought 21st Century Fox early this summer began today’s trading at USD 116.00. 

Disney is thought to have dodged a bullet by losing the bid as many analysts wondered how the European direct broadcasting satellite business would contribute to Disney growth strategy. Riley, an analyst at Barton Crockett, found the result beneficial as he believes that if Disney had won they would have “enter a competitive European pay TV business that [is] removed from its core content [and] theme park wheelhouse.” The Monday following Comcast’s winning bid, Disney reported a 2% price jump while Comcast saw its stock price fall. 

As of October 2nd, Disney has announced plans to sell their 39% stake in Sky to Comcast for USD 15 Billion. Disney, which brags holdings of Marvel, Lucasfilm Ltd, American Broadcasting Company (ABC) and ESPN, reported 3rd Quarter earrings for their media networks operating segment increased revenues by 5% to USD 6 Billion. However, profits did fall dropped in the 3rd Quarter by 1% to USD 1.8 Billion.

5 Comments
  1. Chad Johnson 2 months ago
    Reply

    $DIS did not buy FOX will all cash. It was a combination of cash and stock, subject to the 50/50 rule. Most of the FOX shareholders will elect for stock!

  2. Ross Gerber 2 months ago
    Reply

    $DIS will probably retire most, if not all, of their debt, given their conservative capital management.

  3. Matthew Neebs 2 months ago
    Reply

    $DIS is a great investment right now for a a magnitude of reasons. Good to have a company that isn’t going anywhere yet still growing/disrupting in a time like this.

  4. Alvin Patrelli 2 months ago
    Reply

    The $20B from RSN is on top of the $15B $DIS got from the sale of SKY shares.

  5. Jeff Yorke 2 months ago
    Reply

    If you know in advance where the Yearly Pivot Points are, you know where to add & reduce your longer term risk. Computer algorithms are programmed to buy & sell at Pivots. Pivots are a quantitative math calculation that pro traders have used for many years. $DIS

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