Disney Wins The Fox Bidding War . . . Now What?
Over the last few months I’ve chronicled the epic tug of war between Disney and Comcast for the acquisition of the Entertainment Division of 20th Century Fox. Late last week Comcast announced it was dropping its bid for Fox, which gives Disney a clear path to the acquisition. Now that the matter appears to be settled, media pundits are drooling over potential ramifications a Mouse/Fox tie-up could have on the industry.
In particular industry experts are watching Hulu. Once this acquisition is complete Disney will own a 60% stake in the video streamer. By putting Disney’s content on Hulu, and taking it off Netflix, Disney will have a formidable video streamer with enough exclusive content to rival anyone in the on-demand video space. I know I’ve published this chart a few times, but it really shows Hulu’s value as a distribution hub for all of Disney’s and now Fox’s assets. You can also see why Comcast was so keen on acquiring Hulu too.
BTW – don’t lose any sleep worrying for Comcast. By pulling out of the Fox Entertainment bid they’ve freed up capital to take a full run at another Fox property, Sky Network. This EU TV play may actually be a better fit with their current business portfolio, giving Comcast a back door win in this M&A battle.