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January 2018

WILL THE FOX EAT THE MOUSE?


Will Murdoch Control Disney? Is There A Master Plan For James Murdoch To Head Disney?


Most observers expected Rupert Murdoch to hand over his vast media empire to his two sons James and Lachlan.

Hence, the decision to sell out was a complete surprise to the world.

It seems most likely that Murdoch will give away his life-time's work for money.


RUPERT MURDOCH

Mr Murdoch turned a single Australian newspaper he inherited from his father at the age of 21 into one of the world's largest news and film empires.

In Australia, his media rival was Kerry Packer, who owned Nine TV Network and publishing company Australian Consolidated Press. He gained fame internationally for founding World Series Cricket.

In his entire career, Murdoch has never sold any major asset, except a few magazines.

It therefore seems reasonable to question the motive of the sale or even go a step further are relook if Murdoch plans to let go on his 21st Century Fox assets. In a masterstroke, if Murdoch really wresting control of Disney ?


Is Murdoch Really Wresting Control Of Disney ?






JAMES MURDOCH - DISNEY CEO?

A day before the official announcement, it was reported that James Murdoch would join as Disney's CEO. Even Rupert Murdoch had favoured the move. Such a move could be unpalatable to regulators, and that announcement was not (tactically?) made when the sale was announced.

Instead, Disney CEO - Bob Iger who is overdue to retire (he is already on an extended term) has been asked to continue till 2021, while James Murdoch 'assists him' in transitioning Fox to Disney.

"He and I will continue to discuss whether there's a role for him here or not, but I look forward to talking to him about it," Iger told the press.

Will Iger only be a proxy CEO to help in getting the deal passed by regulators?

Another fact - Comcast approached Disney to buy Fox, but was spurned. Comcast told the press "never got the level of engagement needed to make a d e f i n i t i v e offer." Why did Fox not try to obtain an even higher price from Comcast ? Incidentally, Comcast has a market cap of 184.80 Billion, larger than D i s n e y ' s market cap of 167.69 billion!



THE FACTS

To summarise:

♣ Murdoch will be Disney's Largest Private Share holder.

♣ Fox will represent 25% Of Disney.

♣ Fox Spurned Comcast's Interest to buy.

♣ James Murdoch Could be Disney's CEO in 2 Years

In 2 years, if James Murdoch emerges as Disney's CEO - the Fox will have indeed eaten the Mouse that took it home! n