With direct market access trading offered by online brokers, online stock trading has become a lot more popular. As a stock trader you need to watch out for mergers and acquisitions since they could alter the prospects of a company, which eventually gets reflected in the stock.
The new acquisition of Twenty-First Century Fox ($FOXA, $FOX) assets by Walt Disney ($DIS) provides the latter with a lot more revenue opportunities. There’s so much content to put Disney in an advantageous position amidst the competition. Fox still has Fox Business, Fox News, and its sports network for itself. And these have started trading under the present Fox ticker symbols. But the major entertainment content is heading the way of Disney as a result of the $71.3 billion deal.
What’s Part of the Deal?
This deal gives Disney access to hit titles such as the Planet of the Apes, The Simpsons, The X-Files and a lot more. It also gets Blue Sky Studios, the producer of Ice Age and Rio, under its umbrella. Under Marvel, Disney already has superhero titles such as Deadpool, Black Panther, The Fantastic Four and X-Men. Disney therefore has an enviable collection of content that it is free to use as it sees fit. Motley Fool’s Rick Munarriz argues that it wouldn’t matter even if Disney doesn’t immediately come up with reboots of “Alien” or “Home Alone”.
Theme Park Dreams
So where do Disney’s theme parks figure in all this? It seems that they are not part of the deal, but Munarriz argues that theme park expansion is firmly in Disney’s mind. The Fox partnership was critical in Disney opening Pandora – The World of Avatar two years back at Animal Kingdom. Some upcoming theatrical sequels could help promote Pandora.
There are roadblocks too, as Munarriz points out. Disney has a rival in the theme parks industry, and it has its Simpsons-themed attractions which it isn’t likely to surrender, despite Disney now getting the rights to The Simpsons title. That rival has also not surrendered the licensing rights it has received from Marvel in Florida. But Munarriz reckons Disney can negotiate that considering that it has a lot more ammunition with which to bargain for the licensing.
Munarriz also goes as far as saying that Disney could come up with yet another theme park in Florida. Its main rival is soon to announce another Universal theme park in Orlando. And Disney now has more intellectual property for ensuring another theme park. In all respects, the Disney stock is one to watch.
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