How Disney will sell its movie business to Comcast: A timeline
When Disney and Comcast merged last year, the deal was seen as a big bet on both companies’ potential to become the biggest content distributors in the world.
But with Disney facing a barrage of new digital competitors and with Comcast facing increasing competition from Netflix and Amazon, Disney was forced to look at ways to keep its movie businesses afloat and the merger went down in history as one of the worst deals in Hollywood history.
Here’s what you need to know about the Disney-Comcast merger.
What’s the deal?
The merger involves the merger of two of the most profitable movie companies in the country, the Walt Disney Company and the Walt Studios, the two film companies with a combined $3.9 billion in revenue last year.
Thats more than double the combined revenue of Paramount Pictures and Warner Bros., which both combined $2.7 billion in revenues last year and have been in the crosshairs of antitrust regulators ever since.
Disney’s share price has fallen from $80 a share in May to $39.40 in late October.
It was trading near $65 a share when the deal closed.
What has the deal cost Disney?
The deal cost $4.5 billion, including $400 million from Comcast, $2 billion from Disney and $400,000 from other investors.
Disney has already announced it will cut costs in a bid to keep up with the onslaught of new and different competitors.
Disney CEO Bob Iger has promised that the company will make the changes it needs to keep going, and he has also said he expects the merger to bring back its movie theatres.
In the meantime, Disney has been working on a plan to reduce its movie costs to match Comcast’s, but it’s not clear whether that will be enough to keep the deal going.
Comcast is already cutting its costs to compete with Netflix and Hulu.
Comcast, which has more than 1.4 million movie theaters in the U.S., recently announced plans to cut costs by $5.5 million in 2019, which will reduce its total costs by a combined average of $3 billion a year.
Comcast also has plans to increase its cost of content by $50 million a year, which could cost Comcast $1 billion a month.
But it has said it won’t cut the content cost of its TV service.
What do people think of the merger?
It has become a flashpoint in the movie industry.
Some consumers are concerned that the merger will make it harder for them to watch movies at home.
Netflix has criticized the deal as an unfair and illegal attempt to get more content from a smaller company.
And some movie studios and movie theaters are worried that it could lead to higher prices and higher taxes.
And the deal could be a big headache for Comcast and its parent company Time Warner Cable.
In a statement, Comcast said the merger would benefit the industry and would help it compete with rivals.