[wdwjeff]

Does anyone know more about the latest rumor I've heard-that Disney is considering buying Universal Studios? If it's true, that would be one heck of a combination. All kinds of cool things could happen if they were part of the same company.:D :)

[ELyon10431]

Wow, that would be really coool. Haven't heard anything about this yet but it would certainly be great if it happened as I also Love USF.:)


Liz:D

[Dawn S]

This one has been all over the place since Vivendi is going bankrupt. I read it in the Orlando Sentinel a few days ago, but it's so far just an "idea". In my own opinion,Disney should probably focus on improving the status of one or more of their many other purchases before they buy anything else. By that, I mean, ABC is slumping...They lost a fortune on go.com....DCA is not yielding the success they had hoped.

Here are the articles from the Sentinel::

Disney CFO says would look at Vivendi assets
Wednesday August 7, 5:40 PM EDT

LOS ANGELES (Reuters) -- Walt Disney Co. Chief Financial Officer Tom Staggs said on Wednesday the media giant would consider scooping up any assets of debt-riddled rival Vivendi Universal that are within Disney's core businesses.

"Any assets that are in our core business that come available, we would certainly take a look at," Staggs told Reuters when asked whether Disney might consider acquiring any Vivendi businesses.

He added, however, that it was hard to tell exactly how serious Disney, with its own theme parks, a movie studio and television networks, might be.

"Our primary focus is our core business. That we can augment it and do acquisitions that aren't dilutive to earnings or cash flow" Disney might be interested, he said.

Vivendi Universal, owner of Universal Studios, Universal Music Group and theme parks in Florida and Los Angeles, is currently looking to shed assets in order to pay down debt.

*************

By Robert Johnson | Sentinel Staff Writer
Posted August 9, 2002

Mickey Mouse and Spider-Man roaming the same theme parks? The idea might not be too far-fetched.

Analysts and tourism officials were intrigued Thursday by a Disney official's comment that the company could be interested in buying some assets of debt-ridden Vivendi Universal, which owns such parks as Universal Studios and Islands of Adventure.

"Any assets that are in our core business that come available, we would certainly take a look at," Disney Chief Financial Officer Thomas Staggs told Reuters news service. "Our primary focus is our core business."

Rumors of a sale have been swirling since embattled Vivendi CEO Jean-Marie Messier was ousted and replaced by Jean-Rene Fourtou, who said he plans to lower Vivendi's debt load by "significant asset disposals."

Selling off its entertainment business -- which includes theme parks, movie studios and television -- could be a quick way for the conglomerate to reduce debt without cutting off its core assets in the sewer and water industry.

Analysts said such an acquisition by Disney could erode its current efforts to strengthen its balance sheet and slumping stock price. But Staggs said, "To the extent we can do an acquisition that is not dilutive to the earnings or cash flow, we'll take a look."

The price would have to be "bargain-basement" to make good business sense, said Katherine Styponias, an analyst at Prudential Securities. "Owning more theme parks could make Disney even more cyclical because that's a cyclical business," she said.

Besides, although Disney has the borrowing power to make such a purchase, Styponias said that "given where their stock is, this might not be the best time for a major acquisition."

Shares in both Disney and Universal are trading near 52-week lows. Stock in Disney closed Thursday at $14.50 a share, up 60 cents. That compares with a 52-week range of $13.75 and $27.98.

Vivendi stock closed at $16.32 on the New York Stock Exchange, compared with a 52-week range of $13.36 to $59.35.

Disney and Universal have battled each other on the Orlando tourism front since the latter opened here in 1990.

"Owning Universal would give Disney World a huge increase in marketing power," said Peter Stapp, a theme park consultant who has been a supervisor at both properties. "Disney would get two more jewels in their crown and be able to offer tickets to both."

Disney's huge bus system also could funnel tourists back and forth. "It could mean a lot more convenience for visitors, and they might stay longer," Stapp said.

Advertising and leisure industry veteran Peter Yesawich said that the possible combination is intriguing. "You could package more exciting vacations with more options."

One possible downside cited by Yesawich: Less competition in the pricing of tickets and rooms. Another could be wages, "There wouldn't be as much pressure to pay more in this job market."

[markypooh]

I hope not! I think the competition is extremely important, and helps make all the parks unique. Disney needs the competition to keep them sharp.

[Dawn S]

Very good point, MarkyPooh! Not to mention, Universal & WDW are just 2 TOTALLY different places & they really should remain that way. Not pitting one against another, but it's been often stated that they do cater to different demographics, they hold 2 different sets of rules & are basically just run very differently if you really think about it. No matter which is considered "better" or whatever, they both serve a purpose as they stand & it should remain the way that it is.