There is no reason for the Walt Disney Company to wallow in its defeat to Comcast Corporation in the bidding battle it had over the management of Sky plc.
In an almost $40-billion acquisition deal, Comcast secured control of Sky plc, the British pay-TV firm founded by American media mogul, Rupert Murdoch, on Saturday, September 22.
21st Century Fox bid on behalf of Disney and offered £15.67 ($20.49) per Sky share. Comcast’s tender topped it at £17.28 ($22.60).
Michael Nathanson, MoffettNathanson’s analyst, thinks that Comcast deserves to obtain control of Sky because it exerted substantial effort, shelling out a monumental amount of money.
He said, however, that it is not the end of the world for Disney. The entertainment giant still has plenty of reasons to carry on.
Through its 21st Century Fox ownership, Disney will control 39 percent of Sky at roughly $15 billion. Its chief executive officer, Robert Iger, can either sell these shares to Comcast or continue holding them.
In addition, the financial resources could be used as payment for debt related to the firms’ recent purchase of 21st Century Fox.
Nathanson remarked that despite Iger’s defeat in the Sky bid against Comcast, he could still employ his world-class content license collection in launching Disney’s upcoming streaming service.
The company could engage in the over-the-top industry in Europe in the long run. The content rights involve “Star Wars,” the Disney princesses, Marvel superheroes, and the Pixar animated characters.
Since Iger brought home the bacon in the summer which was the entertainment assets of 21st Century Fox, Disney is now in full control of the “Avatar” and “X-Men” franchises, a major TV studio with over 30 series in production, and international TV firms like Star India.
This promoted the California-based entertainment giant into a potent contender in the entertainment scene which is currently being dominated by tech behemoths, Amazon and Apple, and streaming giant, Netflix.
Disney and Comcast have been longstanding competitors. As a component of a bigger ambition of managing distribution platforms in the streaming era, the Disney CEO was quite eager to win the European pay-TV company.
Once referring to it as “a crown jewel,” Iger reckoned Sky plc and its colossal European subscriber base as apparently a huge loss. He noted that Sky could skyrocket his organization’s foreign revenue share from 24 percent to 40 percent.