♪ CAN'T READ MY, CONDITIONED CAT
♪ CAN'T READ MY, CONDITIONED CAR
♪ CAN'T READ MY, CONDITIONED CAA
♪ CAN'T READ MY, CONDITIONED CAD
♪ CAN'T READ MY, CONDITIONED CAM
♪ CAN'T READ MY, CONDITIONED CA,
CAN'T READ MY POKER FACE.
>> MARIA: WELCOME BACK.
BIG NEWS IN DEAL DRAMA, COMCAST
REPORTEDLY WORKING TO MAKE A
HOSTILE BID FOR THE
ENTERTAINMENT ASSETS OF 21st
CENTURY FOX.
THEY ARE LINING UP THE FINANCING
OF ROUGHLY $60 BILLION TO MAKE
AN ALL CASH BID.
FOX AGREED ALREADY WITH DISNEY
BEFORE A $52.4 BILLION DEAL IN
DECEMBER.
JOINING US RIGHT NOW IS TUNA
AMOBI.
THANKS FOR JOINING US.
YOUR REACTION TO ALL OF THIS?
>> I THINK IT SPEAKS TO HOW RARE
THESE TYPES OF ASSETS HAVE
BECOME AND EVERY TIME THEY COME
ON THE BLOCK, YOU'RE LIKELY TO
SEE A POTENTIALLY EXPLOSIVE
BIDDING WAR.
IT'S ALL ABOUT SCALE.
I THINK YOU SHOULD EXPECT SOME
TYPE OF REACTION FROM DISNEY
AND/OR COMCAST.
SEEMS LIKE THE BALL IS NOW IN
DISNEY'S COURT TO REACT TO THE
OFFER FOR SKY.
IF COMCAST COMES OUT WITH A
SWEETENED ALL-CASH BID FOR THESE
ASSETS, I THINK THERE'S REALLY
ANY NUMBER OF WAYS THAT THIS
COULD GO.
ULTIMATELY I THINK THIS IS
SOMETHING THAT IF YOU'RE A
COMCAST INVESTOR OR DISNEY
INVESTOR, YOU WANT TO BE
CAREFUL.
YOU DON'T WANT EITHER COMPANY TO
DO SOMETHING EXTRAORDINARY.
>> WHY WOULD 21st CENTURY FOX
TAKE THIS BID IF THEY ALREADY
REJECTED A SIMILAR BID, A STOCK
DEAL IN THE LOW $60 BILLION
RANGE?
WHY WOULD THEY TURN AROUND AND
TAKE THIS ONE?
JUST FOR THE CASH.
>> MARIA: COMCAST WAS THERE AND
THEY SAID NO TO COMCAST.
WHAT'S DIFFERENT NOW?
>> REMEMBER, THERE'S STILL THIS
UNKNOWN OVERHANG OF WHAT HAPPENS
WITH THE U.K. REGULATORY REVIEW.
THERE IS NO DEFINITIVE
RESOLUTION AS TO WHETHER THE
REGULAR
REGULATORS IN THE U.K. WOULD
PREFER COMCAST OR DISNEY.
I THINK BOTH COMPANIES ARE
TRYING TO EASE THOSE CONCERNS SO
ULTIMATELY --
>> MARIA: THAT'S ABOUT SKY,
RIGHT?
>> KAI
>> SAI
>> SKY IS PART OF THE MIX THAT
DISNEY HAS OFFERED.
THEY HAVE NOT BEEN ABLE TO CARVE
OUT SKY FROM DISNEY'S OFFER OF
THE AS HE'S.
ASSETS.
YOU'VE GOT THE REGULATORY ISSUES
IN THE U.K.
YOU ALSO HAVE THE FEE.
I DON'T THINK THE ORIGINAL OFFER
COMCAST MADE, I DON'T THINK
THERE WAS CONTEMPLATION OF A
BREAK-UP FEE.
THE OTHER BIG UNKNOWN IS THE
TIME WARNER AT&T TRANSACTION, AS
YOU KNOW, A DECISION ON THAT
COULD GO ANY WAY.
I THINK I WOULD ARGUE IT WOULD
AFFECT HOW THIS ALL KIND OF
SHAPES UP.
>> DAGEN: THAT RULING COMES JUN
>> DAGEN: THAT RULING COMES JUN2
>> DAGEN: THAT RULING COMES JUNh
>> DAGEN: THAT RULING COMES JUN.
>> MARIA: ARE WE IN LIMBO UNTIL
JUNE 12th, UNTIL UNDERSTANDING
WHO GETS THE ASSETS?
>> DAGEN: WHETHER COMCAST STEPS
UP AND TO WHAT DEGREE.
IT LOOKS LIKE ANTI-TRUST
REGULATORS WILL GO AFTER ANY
DEAL LIKE THAT AND IT WOULD
GET -- IF THIS AT&T, TIME WARNER
DEAL GETS SHOT DOWN, WOULD
COMCAST MAKE THE BID?
>> IT WOULD SIGNIFICANTLY AFFECT
COMCAST'S MOTIVATION TO GO
FORWARD.
>> MARIA: DOES IT IMPACT FOX,
DISNEY, AN ANTI-TRUST DECISION
AGAINST TIME WARNER AND AT&T,
DOES THAT AFFECT FOX DISNEY.
>> I DON'T THINK IT DOES.
THAT IS A HORIZONTAL.
>> DAGEN: DISNEY FOX IS
ENTERTAINMENT ASSETS.
COMCAST YOU HAVE A DELIVERY
METHOD.
THAT COMPLICATES THAT.
>> THEY WILL ULTIMATELY HAVE TO
SWEETEN THEIR BID.
IF THEY'RE BIDDING AGAINST EACH
OTHER, ARE WE GOING TO SEE
HIGHER PRICES?
>> I THINK IT'S INEVITABLE.
I DON'T THINK THAT RUPERT
ACTUALLY WANTS TO DO AN ALL-CASH
TRANSACTION NECESSARILY.
THE DEAL DISNEY PUT FORWARD
ALLOWS FOX SHAREHOLDERS TO HAVE
25% OF THE COMBINED ENTITY.
WHEN YOU SEE HOW DISNEY'S
SMACKING THE BALL OUT OF THE
PARK, BLACK PANTHER, AVENGERS,
ALL THESE FRANCHISES, WHY WOULD
YOU WANT TO WALK AWAY AND NOT
PARTICIPATE IN THE UPSIDE.
>> MARIA: WHICH IS WHY THEY SAID
NO TO COMCAST IN THE BEGINNING,
RUPERT WANTS TO BE WITH DISNEY.
>> DISNEY IS A PREFERRED PARTNER
HERE.
>> WHAT ARE WAYS COMCAST CAN
SWEETEN THE DEAL?
>> THEY CAN PROJECT A
SIGNIFICANT BREAK-UP FEE.
THE ABSENCE OF THAT WOULD BE A
NONSTARTER I THINK FOR RUPERT.
I THINK IF THEY'RE GOING TO GO
ALL CASH, INCOME CAST HAS SHOWN
THEY'RE WILLING AND ABLE TO
SIGNIFICANTLY INCREASE THE
PREMIUM AS YOU SAW IN THE SKY
BID.
I WOULD NOT BE SURPRISED FOR
SOME EXTRAORDINARY PREMIUM HERE,
AN ALL-CASH DEAL WHICH WOULD
MAKE IT VERY DIFFICULT FOR FOX
SHAREHOLDERS TO REFUSE, FRANKLY.
>> MARIA: UNLESS DISNEY COMES
BACK AND RAISES ITS BID.
>> WHICH IS A POSSIBLE.
>> MARIA: DISNEY IS SLATED TO
REPORT QUARTERLY EARNINGS AFTER
THE BELL TONIGHT.
THIS IS EXPECTED TO BE BIG ON
THE CONFERENCE CALL.
THE EARNINGS ARE EXPECTED TO
COME IN AT $1.70 A SHARE.
LET'S TAKE A LOOK AT THE STOCK
IN THE PREMARKET THIS MORNING.
AS YOU MENTIONED A MINUTE AGO,
THIS COMPANY HAS BEEN ON FIRE AS
A RESULT OF THESE ANIMATION
ACQUISITIONS THAT IT MADE,
MARVEL AND --
>> WHEN YOU LOOK AT THE
FRANCHISE PIPELINE AT DISNEY,
IT'S NEVER BEEN MORE ROBUST.
I THINK THEY'VE GOT A FIRST
CLASS PROBLEM HERE, HOW DO YOU
MONDAY TIES
MONEAY TIES
MONETI TIES
MONETIZEIES
MONETIZE TS
MONETIZE THE ASSETS AS THE RATE
THEY'RE CREATING THEM.
THIS SUMMER'S SCHEDULE IS
LOADED.
>> MARIA: WHAT A PACE.
>> IT'S INCREDIBLE.
I THINK IF YOU'RE A DISNEY
SHAREHOLDER, I THINK THERE'S
CONCERNS ABOUT ESPN WHICH IS AT
THE FOREFRONT.
THEY STEPPED FORWARD WITH A
DIRECT TO CONSUMER OFFERING.
THE QUESTION INVESTORS ARE GRAB
GRAPPLING WITH IS HOW CAN THEY
MAKE THE TRANSITION TO DIRECT TO
CONSUMER.
>> HOW ARE THEIR THEME PARKS
DOING?
THAT'S A WINDOW INTO HOW
CONSUMERS ARE BEHAVING.
>> THE THEME PARKS ARE DOING
FELL ON
PHLL ON
PHEN ON
PHENOMN
PHENOMENAL.
>> MARIA: THEY RAISED THEIR
PRICES.
>> BUSINESS HAS BEEN TRENDING AT
ALL-TIME HIGHS.
INTERNATIONALLY, SHANGHAI PARK
HAS BEEN A RUN-AWAY SUCCESS.
THEME PARKS HAVE BECOME ONE OF
THE MARVELOUS KIND OF GIFTS THAT
KEEP ON GIVING FOR DISNEY.
>> PARKS AND RESORTS ARE
RESPONSIBLE FOR 26% OF EARNINGS
IN FISCAL 2017.
>> MARIA: IN TERMS OF COMCAST
RIGHT?
NOT SO FOR COMCAST.
>> THAT'S A VERY GOOD
OBSERVATION WHICH TENDERS TO GET
LOST IN THE -- WHICH TENDS TO
GET LOST IN THE MIX.
>> MARIA: IT'S IMPORTANT.
I SUSPECT RUPERT MURDOCH WANTS
TO BE A VOCAL SHAREHOLDER.
>> IT'S HARD TO IMAGINE I'M
TAKING THE CASH AND WALKING AWAY
INTO THE SUNSET.
>> MARIA: YOU THINK DISNEY WINS
HERE?
>> I DO THINK SO.
IT WILL BE MORE COMPETITIVE BUT
NOWHERE NEAR THE PRICE WE'RE
TALKING ABOUT THAT THEY OFFERED.