More fallout from Universal mgmt shake-up: GE may sell NBC TV division

[Petra]

I suspect strongly this internal shake-up is the reason why Universal has been so quiet lately......

Someone needs to post this at AVS

http://www.forbes.com/feeds/ap/2007/...ap3403409.html

[Petra]

Just imagine Sony & friends put a bid for Universal

[Maximus]

It would be highly unlikely that Sony could find the money to buy another failing studio. If there was a bid made, chances are it would have to come from a capital investment firm like 3i, or one of the other majors, Newscorp (Fox) may come forward with a bid, but even they spent $$$$ on buying the distribution rights to MGM from Sony.

[dialog_gvf]

People are speculating whether Microsoft and/or Toshiba might make a bid.

That would be interesting. And unfortunate.

Although I expect the EU would have a field day if MS did that.

[Petra]

MS is the most likely candidate. Universal is too huge for Toshiba to digest.

But MS makes the most sense. So far they have been a platform provider. Now it makes more sense for them to move forward as a content provider also. They also need content for their HD-download area.

But in any case, HD-DVD fans would not be getting alot of contents until all of these resolved.

What I found out about mgmt shake-up is that all aspects of the company business get affected.

[Maximus]

Originally Posted by Petra

MS is the most likely candidate. Universal is too huge for Toshiba to digest.

But MS makes the most sense. So far they have been a platform provider. Now it makes more sense for them to move forward as a content provider also. They also need content for their HD-download area.

But in any case, HD-DVD fans would not be getting alot of contents until all of these resolved.

What I found out about mgmt shake-up is that all aspects of the company business get affected.

MS wouldn't be able to justify buying a studio as they do not have a content providing part to the company other than Live!, which does not pull in a significant amount of money, nowhere near enough for a capital expenditure of nearly $5bn on a film studio.

[LembasBread]

Well Sony may have lost a little revenue in their electronics department, but their film production, distribution branch made a killing last year. I don't see why they would want to buy up Universal, but I think they could.

[powerSURG]

Originally Posted by Maxpower1987

MS wouldn't be able to justify buying a studio as they do not have a content providing part to the company other than Live!, which does not pull in a significant amount of money, nowhere near enough for a capital expenditure of nearly $5bn on a film studio.

...I hope you're right. That would really drag this war on and on and on and....

[dialog_gvf]

Originally Posted by Maxpower1987

MS wouldn't be able to justify buying a studio as they do not have a content providing part to the company other than Live!, which does not pull in a significant amount of money, nowhere near enough for a capital expenditure of nearly $5bn on a film studio.

At this point Microsoft buying Universal would be simply an anti-Sony anti-BD gambit. It would be a blantantly anti-trust manoever on Microsoft's part. I think they'd be killed by the EU. And probably the DOJ too.

Sony didn't buy Columbia to push BD. They've used the ownership to facilitate promotion of BD.

I guess Microsoft could use the development of downloading as the justification. But, it sure would make things nasty. They couldn't mention HD DVD as the reason at all.

Gary

[JTK]

Originally Posted by Petra

Just imagine Sony & friends put a bid for Universal

I truly and literally would LMAO.

[Maximus]

Originally Posted by LembasBread

Well Sony may have lost a little revenue in their electronics department, but their film production, distribution branch made a killing last year. I don't see why they would want to buy up Universal, but I think they could.

The difference is that, Colombia was a money making studio when Sony bought it, add that to fact that Coca-Cola gave them a cut down price as they wanted to get rid of it and focus on their core business of soft-drinks. MGM was a similar story as Kirk Kerkorian gave Sony a favourable deal when he part-financed the deal. I don't see a saviour for Sony this time, and they would be severely overstretched if they bought it without any friends.

With the MGM buy Sony smartly made sure to include the 007 franchise as a transfer to a wholly owned Sony property, so they have already made up $1bn in revenue with just one movie, Universal don't have any relevant franchises that Sony could capitalise on in a similar way.

[Spankey]

Let's just say that MS was able to buy Universal. I'm still not sure it would matter in the long term. Short term, Universal would be able to remain format exclusive. If all other studios continue to produce HD content on Blu-ray and Universal is the sole hold out, they will be looking at a losing proposition. Universal at some point will go Blu, even if it means VC-1 is the codec of choice.

[Josh]

They are are talking about the TV unit, not Universal studios.

[Maximus]

Originally Posted by joshd2012

They are are talking about the TV unit, not Universal studios.

Makes way more sense now! Uni Studios still has a lot of potential, unlike NBC which is circling the drain.

[maximus2323]

Originally Posted by Petra

I suspect strongly this internal shake-up is the reason why Universal has been so quiet lately......

Someone needs to post this at AVS

http://www.forbes.com/feeds/ap/2007/...ap3403409.html

I think it's refering going public. I may be wrong....

-Max

[dialog_gvf]

Originally Posted by Petra

Just imagine Sony & friends put a bid for Universal

I wonder what would happen if Sony/Fox/Disney formed a JV to acquire Universal?

Seems odd, but it would mean all parties had a natural risk sharing studio for productions. It would be great way of spreading the risk with movies being so expensive to make.

Sony + Universal
Fox + Universal
Disney + Universal

Gary

[guidosarduche]

Would be a tough sell for Disney, as they would then have to figure out a way to dump NBC as they already own their own network in the form of ABC.

I could see someone like Google stepping in though, as it would give them something to offer right out of the gate when and if they make themselves a player in the downloadable tv/movie marketplace. And this senario would bode well for the BD camp as MS and Google butt heads quite often it seems.

Just another possibility...

[Josh]

I changed the title to hault confusion.

[Jack Torrance]

Originally Posted by Maxpower1987

With the MGM buy Sony smartly made sure to include the 007 franchise as a transfer to a wholly owned Sony property, so they have already made up $1bn in revenue with just one movie, Universal don't have any relevant franchises that Sony could capitalise on in a similar way.

Actually Max, Sony only have dibs on Casino Royale and Bond 22, then the deal on Bond reverts back completely to MGM. This I believe is a result of MGM cancelling their distribution arrangement and moving it to Fox (though I believe Sony keep the rights to any new Pink Panther movies).

There was a great article in the L.A. Times about the whole deal (which actually was very complex and confusing - and I had a relative who worked there and even when they explained the deal to me back then I was confused as all hell - but the article explains it all beautifully) about two or three months ago. I'll see if there is a link and post here as it is good reading.

[asj2006]

Originally Posted by Petra

MS is the most likely candidate. Universal is too huge for Toshiba to digest.

1. Toshiba is larger than MSFT. Microsoft is miniscule compared to most of the larger companies and conglomerates in terms of revenues. For example, the profit of Exxon in 1 quarter was nearly the size of the entire revenue of microsoft for one year. Even in the IT field, IBM is several times the size of mIcrosoft.

2. MSFT usually does not stray very far from its computer roots, and when they do they usually stumble (e.g. consumer product zune)