Mario Gabelli Weighs in on the Disney-Fox Deal

The transcript discusses Disney's shareholder changes, focusing on a major shareholder's acquisition of 100 million shares. It highlights the financial strategies involved, including a significant transaction with Fox. Bob Eiger's history and role in Disney's evolution are explored, along with the company's content strategy and future plans. The discussion covers Disney's global expansion, direct-to-consumer approach, and the impact on its entertainment and sports sectors.

What is the primary focus of the major shareholder's investment in Disney?

• To become the largest taxable shareholder

• To acquire a controlling interest in Fox

• To diversify into new markets

• To sell off Disney's assets

What was surprising about the financial engineering of the Disney-Fox merger?

• The premium taken for voting stock

• The lack of shareholder approval

• The low transaction cost

• The high tax structure

Who played a significant role in the Disney-Fox merger and has a notable history with Disney?

• Walt Disney

• Bob Iger

• Steve Jobs

• Michael Eisner

What is the expected capital expenditure for the company post-merger?

• $4 billion

• $5.5 billion

• $100 million

• $6 billion

What is a potential challenge for the company after the merger?

• Maintaining the big six movie studios

• Reducing global expansion

• Increasing capital expenditures

• Decreasing direct-to-consumer content