On July 27, 2018, shareholders of the Walt Disney Company and 21st Century Fox agreed to a $71.3 billion purchase plan that gave Disney the bulk of the Fox media empire, substantially altering the entertainment landscape. What was LEAST likely among Disney's considerations in completing its acquisition of Fox?
Multiple Choice
purchasing a powerful and well-known brand name that could be transferred to the products of other businesses and thereby used as a lever for driving up the sales and profits of such businesses.
opening up new avenues for reducing costs by diversifying into closely related businesses such as direct-to-consumer streaming of media content.
leveraging existing resources and capabilities by expanding into related industries where these same resource strengths were key success factors and valuable competitive assets.
expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
expanding into industries whose technologies and products complemented its present media and entertainment businesses.
Ans: expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
On July 27, 2018, shareholders of the Walt Disney Company and 21st Century Fox agreed to...
What are the conclusions in assessing the acquisition of the Walt Disney company and 21st-century fox? did the announcement of this acquisition create value? or Will this currently ongoing acquisition process create value?
Walt Disney Company: Analyzing reportable segment disclosures (LO B-2) Provided below are excerpts from The Walt Disney Company Form 10-K for the fiscal year ended October 3, 2015. Description of the Business and Segment Information The Walt Disney Company, together with the subsidiaries through which businesses are conducted (the Company), is a diversified worldwide entertainment company with operations in the following business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. DESCRIPTION OF THE BUSINESS Media Networks...
Case Study Notes
Case
Questions
1- Is Disney liquid compared to its peers?
2- Does Disney manage its assets effectively compared to its
peers?
3- Does Disney’s debt load suggest trouble paying its
creditors?
4- Compare Disney’s profitability to its peers.
21,922 36.5% 46.7% 24,701 41.1% 6,095 38.8% PECP Studio Entertainment 10,065 16.7% 19.1% 3,414 5.7% -738 -4.7% -668 -10 Eliminations Total 59,434 HOW DISNEY MAKES MONEY PARKS, EXPERIENCES & CONSUMER PRODUCTS A previous Disney Case used the company's financial...