Chapter 1155: A Local Channel Worth 20 Billion Dollars

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

Many economic and business experts believe that ESPN has become an obstacle for Disney. The sports cable network has become more and more expensive over the years.

"In my opinion, Disney's main business is still on the Hollywood side. The sports network is just the icing on the cake. However, ESPN now not only can't do the icing on the cake, but 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 the table with his fingers, "Jason, speaking of which, I might as well reveal some inside information to you.

Disney has long conducted analysis and research on the decline in ESPN's revenue, and formulated a series of rescue plans, including the acquisition of shares in MLB's streaming media company. After the transaction is completed, Disney will be given the broadcast technology support it needs to help ESPN and the entire The Walt Disney Company's Streaming Boosts Profitability.

ESPN itself is also working hard in the direction of digitalization. It is currently negotiating cooperation with Youtube. In the near future, ESPN will land on YouTube to provide users with Internet TV services. "

Yang Cheng smiled. These measures are only temporary solutions, not the root cause. Temporary quenching of thirst cannot solve the permanent drought problem.

In his opinion, Robert Iger is a dead duck with a stubborn mouth, and he probably wants to get rid of this burden in his heart, but because the shareholders are not optimistic, he has not been able to make up his mind for the time being.

"OK, let's not talk about ESPN for now, what do you think about the CW TV station's full acquisition of the Fox Sports segment?" Yang Cheng quickly changed his mind, and if he couldn't go one way, he would change another way.

Iger quickly followed Yang Cheng's train of thought, "We can talk~"

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

However, he is not going to continue to help ESPN continue to live, or continue to increase the burden on him. If he can cooperate with Yang Cheng to split Fox, it will also greatly ease the financial pressure of the acquisition project.

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 teams, baseball teams and hockey teams. Among them are many famous clubs, such as the Green Bay Pack of the NFL. Workers and MLB's Atlanta Braves.

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

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 did not hear that anyone was interested in this part of the assets, but Comcast wanted to compete with Disney and acquire Fox as a whole.

Iger didn't keep it secret, and directly revealed the suspense, "At present, the groups that find me here 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's face became serious. Each of these opponents is easy to deal with, and each has financial strength and background not weaker than New Era Media. It seems that if you want to successfully win this part of the assets, you need to start with Robert Iger.

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

Iger spread his hands, "It's obvious~"

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

This is the benefit of dialogue between smart people. Some things don't need to be said too clearly, and everyone can understand them.

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

We value Fox Sports as a whole at $16 billion due to high earnings and strong cash flow, and a bidding war could push the value of these assets up to $20 billion. "

Yang Cheng believes that Robert Iger will not exaggerate on this kind of thing, because the value is on the bright side, and the premium estimate will not exceed too much, and Disney's estimate can only lower the price but not 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 Cheng said with emotion.

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

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

Iger suddenly said, "By the way, let me remind you that at present, the Federal Communications Commission of the United States has not yet lifted the restrictions on a company owning multiple TV stations. No broadcasting 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 joined forces to tackle the Communications Commission and try to lift this regulation. Once the regulation is lifted , the platform will undoubtedly become more competitive.”

"It's good that you know what's in your heart~"

Yang Cheng pondered for a moment, "Robert, both theoretically and personally, I hope this cooperation can be achieved, but the figure 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 give a clear reply after a week, Disney will consider looking for other partners, or simply merge and acquire as a whole." come down."

Yang Cheng nodded heavily, "I understand, thank you~"

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

"What do you think? The nearly 20 billion acquisition of the Fox Sports local channel, excluding FS1 and FS2, is this deal worth it?" Yang Cheng pouted, letting Eddie and Ruiz express their opinions.

Eddie said first, "In my opinion, the broadcast content of FS1 and FS2 partially overlaps with the national sports broadcast content developed by CW TV station. Whether it can be acquired is not of great significance to us, but those local sports channels. It will help us improve our market share and increase our exploration and penetration of the offline market.”

Ruiz frowned and offered a different opinion, "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 strong supplement. Why would he agree to sell Fox Sports to Us? Just to share the financial pressure?"

Eddie shook his head, "No, no, there shouldn't be any financial problems on Disney's side. For the tens of billions of dollars in mergers and acquisitions, it is impossible for anyone to use all cash transactions, and most of them use a combination of stocks and cash. For the transaction, I guess Mr. Iger is worried about being accused of antitrust. After all, it is impossible for Disney to acquire Fox TV when it already owns ABC and ESPN. Since it cannot be acquired as a whole, the sports sector alone is really not worth spending precious 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, as well as the film company's film library and huge copyright pool, as for the TV part, it's not the main content.

Alleviating Disney's current decline in content production is Iger's first priority. After all, Hollywood is Disney's main battlefield! "

Ruiz continued, "Judging from the information we have so far, this huge deal, which exceeds 40% of the market value of both parties, can be described as a win-win situation. Disney can get content supplements from Fox, and Fox will get rid of heavy assets. Take revenge and concentrate on running the cable TV business.

Of course, the biggest profit must be Murdoch himself. Through this transaction, he turned around and became Disney's personal major shareholder, continuing to maintain his influence as a media tycoon, and at the same time avoiding the harm caused by family descendants competing for inheritance. This hand is really powerful. "

Regarding his CEO's sincere admiration for other people, Yang Cheng has no taste for it. Now his mind is full of whether or not to do this 20 billion deal, and how to do it!

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

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

This company, which was merged by Twentieth Century Films and Fox Films in 1935, is one of the most prominent giants in Hollywood. Its representative works include "Cleopatra", "The Sound of Music", "Star Wars" and so on. , and 20th Century Fox appears to be complementary to the needs of Disney's film business.

After controlling HULU video, Disney will launch its own streaming service on the basis of HULU video, and the content provided by the two major film labels, Disney and Fox, is the best way to attract users and relieve itself in one fell swoop. The lack of service.

And if New Era Media pays nearly 20 billion US dollars in stock or cash, what can it get?

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