Chapter 1155： A local channel worth 20 billion dollars

Actually, Yang Cheng’s proposal was not a whim. As early as last year after Disney’s financial report was released, there were reports in financial magazines and business forums, speculating whether Disney was going to abandon the burden of ESPN.

Many economic and business experts believe that ESPN has become an obstacle to Disney. The sports cable network has become more and more expensive for so many years. If the loss is not stopped in time, it is likely to become a trap for Disney.

"In my opinion, Disney’s main business is still in Hollywood. Sports broadcast networks are just the icing on the cake. However, now ESPN is not only unable to make the icing on the cake, it may become a burden. I really can’t think of any reason for Disney to continue. Keep this part of the business." Yang Cheng said bluntly.

Robert Iger tapped his finger on the desktop, "Jason, having said that, I might as well give you some inside information.

Disney has already conducted analysis and research on ESPN’s revenue decline, and formulated a series of rescue plans, including the acquisition of shares in MLB’s streaming media company. After the transaction is completed, it will give Disney the necessary broadcast technical support to help ESPN and the entire Disney's streaming media enhances profitability.

ESPN itself is also working hard in the direction of digitization, and is currently negotiating cooperation with Youtube. In the near future, ESPN will log on to YouTube to provide users with online TV services. "

Yang Cheng smiled. These methods are only a temporary solution, not a permanent cure. Temporary quenching of thirst cannot solve the permanent drought problem.

In his opinion, Robert Iger is a hard-headed duck, and his heart is estimated to want to get rid of this burden, but because the shareholders are not optimistic, he has not made up his mind for the time being.

"OK, let's not talk about ESPN for the time being, what do you think about CW TV's comprehensive acquisition of the Fox Sports sector?" Yang Cheng quickly changed his mind.

Iger quickly followed Yang Cheng’s thoughts, "You can talk~"

As Yang Cheng thought, he personally is not optimistic about the future of ESPN, but it is not important. Shareholders value the integrity of the industry chain more. If ESPN can still provide profits, it is difficult for him to convince the board of directors to agree. Sell ​​ESPN, even if he is Robert Iger, a new generation of Disney emperor.

But he is not going to continue to help ESPN continue to live, or continue to add weight to his body, if he can cooperate with Yang Cheng to split Fox together, it will also greatly ease the financial pressure of the acquisition project. This is a matter of killing two birds with one stone.

Fox Sports has a total of 22 sports channels, most of which are local channels. These sports channels have a total of 44 professional basketball, baseball, and hockey teams, including many famous clubs, such as the NFL’s Green Bay Packaging. Workers and MLB's Atlanta Braves.

And Yang Cheng owns clubs in the two major sports leagues, the Panthers and Nets. The annual broadcast revenue of these teams is definitely not a small amount. In the United States, there are thousands behind every professional team. Tens of thousands of **** fans, these are the objects Yang Cheng hopes to make money.

But Iger smiled and said, "Jason, you have to be prepared, your competitors are not weak."

Yang Cheng was taken aback, "Huh? What do you mean?"

He really hasn’t heard that anyone is interested in this part of the asset, but Conscart wants to compete with Disney and acquire Fox as a whole.

Iger didn’t sell it, and directly opened up the suspense. “At present, the groups that just found me include media and technology companies including Sinclair Broadcasting Group, YouTube and Amazon, as well as Blackstone Group and Apollo Global Management Co., Ltd. Wait.

Obviously, investing in sports channels is a high-quality option in the eyes of investment companies. "

Yang Cheng looked solemn. Each of these opponents is easy to deal with, and each has the financial strength and background that is not weaker than that of the new era media. It seems that if you want to successfully win this part of the assets, you need to start from Robert Iger's side.

"Disney's acquisition of Fox Group is facing a lot of financial pressure, right?"

Iger spread out his hand, "This is obvious~"

Yang Cheng made a decisive decision, "New Times Media is willing to help Disney bear some of the pressure."

This is the advantage of dialogue between smart people. There are some things that don’t need to be said too clearly, and everyone can understand.

"Disney has estimated the value of Fox’s assets, and other assets require half a year or even a year of investigation and research, but the sports channel acquisition plan can be launched within a few weeks once it is confirmed.

Due to the high earnings and abundant cash flow, we value Fox Sports as a whole at US$16 billion. If the bidding war starts, the value of these assets may rise to US$20 billion. "

Yang Cheng believes that Robert Iger will not exaggerate this kind of thing, because the value is all on the surface, and the premium estimate will not exceed too much, and Disney's estimate can only reduce the price and cannot be the premium, regardless of the participation of other forces. , Disney's original plan was to merge and acquire as a whole.

"20 billion US dollars, this is an astronomical figure." Yang Orange said with emotion.

Iger deeply agrees, "Yes, but I believe New Era Media has the ability to come up with this money."

Yang Cheng will naturally not show his timidity, "Of course, but it is necessary to seek help from the bank."

Iger suddenly said, "By the way, let me remind you. At present, the Federal Communications Commission of the United States has not lifted the restriction on a company to own multiple TV stations, and no broadcast company can have more than 39% of household TV coverage. ."

Yang Cheng said gratefully, "Yes, I am aware of this regulation. At present, many TV broadcasting platforms, including Sinclair Broadcasting, have teamed up with the Communications Commission to try to lift this regulation. Once the regulation is lifted , This platform will undoubtedly become more competitive."

"It's good if you know it~"

Yang Cheng pondered for a moment, "Robert, both theoretically and personally, I hope this cooperation can be achieved, but the number of 20 billion is too big. I have to go back and discuss with the company’s management before making a final decision. Hope you can give me some time."

Iger smiled like Mickey Mouse, "Of course, this is a matter of course, but I can’t give you too much time. If you don’t have a clear reply after a week or a week, Disney will consider looking for other partners, or simply M&A. Come down."

Yang Cheng nodded heavily, "I understand, thanks a lot~"

Farewell to leave Disney, Yang Cheng went directly to the airport, flew back to New York on the Jason, and then returned to the company non-stop, calling his right hand for a small meeting in the office.

"What do you think? Nearly 20 billion acquisitions of Fox Sports local channels, excluding FS1 and FS2, is this deal worth it?" Yang Cheng stubbornly asked Eddie and Ritz to express their opinions.

Eddie preemptively said, "In my opinion, the broadcast content of FS1 and FS2 partially overlaps with the national live sports content developed by CW TV. Whether it can be acquired is of little significance to us, but it is those local sports channels. It will help us improve our market share and increase our exploration and penetration of offline markets."

Ryze frowned and put forward a different view, "I don't understand what Robert thinks. It stands to reason that under the premise of owning the large platform of ESPN, local channels will be a powerful supplement. Why would he agree to sell Fox Sports to Are we? Just to share financial pressure?"

Eddie shook his head, "No, no, Disney should not have financial problems. For mergers and acquisitions of tens of billions of dollars, it is impossible for anyone to trade in cash. Most of them use a combination of stocks and cash. In the transaction, I guess Mr. Iger is worried about antitrust accusations. After all, when Disney already owns ABC and ESPN, it is impossible to acquire Fox TV. Since it cannot be acquired as a whole, the sports sector alone is really not worth consuming valuable resources. cash flow."

Yang Cheng nodded in agreement with Eddie’s statement, “That’s right, and what Disney values ​​most is Fox’s content production capabilities, film company’s film library and huge copyright pool. As for the TV part, it’s not the main content.

To alleviate Disney's current decline in content production, Iger is the first to do, after all, Hollywood is Disney's main battlefield! "

Ritz continued, "From the information we currently have, this huge transaction that exceeds 40% of the market value of the two parties is a win-win situation. Disney can get content supplements from Fox, and Fox has thrown away heavy assets. Take revenge and concentrate on operating cable TV business.

Of course, the most profitable person must be Murdoch personally. Through this transaction, he turned to become a personal majority shareholder of Disney, continuing to maintain the influence of its media tycoon, and at the same time avoiding the harm caused by family descendants fighting for inheritance~ www.novelhall.com~ This hand is really amazing. "

For his CEO's sincere admiration for others, Yang Cheng has no taste. He is now full of thoughts about whether to do the 20 billion transaction and what to do!

Disney pays tens of billions of dollars in cash and stock to get 20th Century Fox, one of the six major Hollywood studios, cable channels such as National Geographic, shares in Sky TV, and shares in streaming media service Hulu held by Fox .

Twentieth Century Fox, valued at $13 billion, is the "crown" of all these assets.

This company, which was formed by the merger of Twentieth Century Pictures and Fox Films in 1935, is one of Hollywood’s most prominent giants. Its masterpieces include "Cleopatra", "The Sound of Music", "Star Wars", etc. , And Twentieth Century Fox seems to be complementary to the needs of Disney’s film business.

After holding HULU Video, Disney will launch its own streaming service based on HULU Video. The content provided by the two major movie labels, Disney and Fox, is the best way to attract users and ease their online presence. The lack of service.

And if New Times Media pays nearly US$20 billion in stocks or cash, what can it get?

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