Anyhow, Universal execs met with Vivendi chairman Jean-Rene Fourtou (is everyone in Vivendi named Jean-something or what?) who hinted strongly that Vivendi wants OUT of the American entertainment biz. And the American entertainment biz wants them out too.
This is a bit scary for Universal theme park fans. What happens if they get purchased by someone who doesn't understand the theme park business? What happens if they get purchased by someone who thinks Disney is doing a bang-up job right now? The HORROR!
Robert Wright, CEO of NBC immediately suggested that they might be interested in buying or merging with Universal. Many say his remarks were exaggerated, but were they? NBC clearly has its eye (oh, wait, that's CBS!) on all the ABC/Disney synergy going on. An NBC buyout would benefit NBC since it could air all the Universal movies for free, but it would probably create even more benefits for the parks. First there is that synergy, and NBC has a lot more to offer in that department right now than ABC does. Then there is NBC's lofty position in the ratings. Those numbers equate to higher advertising rates, which means that there could be extra money for the parks. Not to mention that this synergy/high-ratings combo means a larger audience will be captive for Universal Studios commercials than is currently available for the zillion Disneyland and Disney World commercials all over the place on ABC. Moreover, "Today" could do a week in Universal Orlando, like "Good Morning, America" does often from WDW, and their gigantic audience would see Katie and Matt having fun there. Who doesn't want to be like Katie and Matt?? Plus, what show on ABC apart from "The Wonderful World of Disney" has the target audience for the Disney parks? NBC, which is currently king of the 15-34 age group, has Universal's target audience ALL OVER THE PLACE.
Of course, the other situation - the more likely one at that - is that Barry Diller, chairman of Universal, will merge his company into Universal's. Diller has been a big supporter of the parks, and his other company, USA Interactive would only benefit to a more recognizable name. USA Interactive is doing quite well and is trading higher than Vivendi Universal currently is. Also, he was a big cheese at the recent Vivendi Universal meeting and is kissing some serious Jean-Fill-in-the-Blank butt. Furthermore, his company is far more stable than a commercial network, especially in this era with so many cable alternatives. ABC is the PERFECT example of how fast fortunes can fade in the glorious world of TV.
Also, rumors abound that Universal Studios might end up being sold separately from Universal Music. This could only help the parks since most music publishers are hurting. Universal Music has done well, but mainly from buying out smaller labels. That will eventually come back to haunt them. Of course, losing the Music portion means no synergy there, but there is almost no synergy there NOW.
So what do you all think would be best for the Universal parks? Well, what would the second-best thing be since the BEST thing would be me running them??
;-)
Actually, I have an interesting off-topic story about what I was doing that perhaps I might get to tell, sometime within the next year....
>>>I'd like to see Disney but out Universal's theme parks<<<
I hate to say this, but I PRAY that Disney does not buy Universal. Disney will only run it into the ground like they have with ABC, and ultimately themselves as well.
I have three comment on the buyers. First the most important person is not Diller but the Bronfman family which was the head of seagrams and owns 5% of Vivendi because of the acquisition. They were at the helm with the creation of the universal resort.(IOA, hotels, etc.) I believe they wil play a major role in whatever happens to universal.
Next theirs paul allen who owns a good part of Dreamoworks. He is really into the entertainment industry and can easily by universal. Also, he would be a good owner since he tends to stay away from cntrolling the companies and lets the creators do the job.
Last and from left field, i would love to see Ruport Murdoch and fox take a bid for it. Fox doesnt have a music or themepark division. They also, are already looking to buy some pay tv assets from vivendi. Last, they have a close relationship with universal cause they constantly distrubute together. For me this is a little more what i want then what will probably happen. Can you imagine fox owning Universal Orlando and wants a new park based on what they produce, think of the possibilities:
Simpsons, X-files, Star Wars, Titanic, Die Hard, Speed, Aliens,Predators, Moulin Rouge, Anastatia, and the list goes on and on.
I realize that USA Interactive is a part of Universal now, but the report made it sound as if they were two distinct companies who have combined and not one conglomerate. So I am just going on the assumption that the Times knows what they are talking about.
As for Disney buying Universal? PLEASE! Universal is currently successful in every branch of the media it is invested in. Disney does well enough with its movie division but nowhere near as well as Universal. Beyond that, Disney has already ruined the biggest portion of its television division, has never had a good music division and is in the process of killing all customer loyalty in its theme park division. Why would we want them to swallow Universal and bring them down to Disney's level? Fortunately, we know that Disney has more than a few accounting problems of their own that will not only keep them from attempting a Universal coup, but will leave them open as a target of a takeover bid. Disney being bought by someone else would be far better for everyone than Disney buying someone else!
Too many mergers and acquistions helped get the American economy in the mess it is today. Especially when those megacompanies are run by professional managers who know nothing about what it is their companies do. All they know is how to fudge books, fool their boards and analysts, and generally game the system.
We need to be breaking up more companies in America. And not letting the few biggies left combine some more.
Anyhow... I can't see Disney buying it simply because the stock is so low as is and I don't think anyone can see Disney taking on that much debt right now.
Furthermore, I can't see anyone ALLOWING Universal to sell it to them. Those parks are full of attractions themed to movies that aren't Disney movies. Would Disney allow a Shrek attraction after the ogre rightfully took the Oscar away from "Monsters Inc?" Would Disney allow a Spider-Man ride, knowing the movie will keep it from winning the box office crown this year? And how about the Incredible Hulk? Or Jurassic Park? Or Men in Black? Or Jaws? Or ET? Considering how much of this content came from Steven Spielberg or DreamWorks, I think he would buy the parks long before Disney ever got their grimy mitts on them.
Plus, this all hinges on Universal selling the parks separately from the media portion. I don't see that happening. The theme park side makes money CONSISTENTLY. Moreso than movies, television or music. Disney says, "if the price is right." Well, I am sure they will not sell at a price that Disney can afford. They carry a lot of debt from building IOA and they also own the Lockheed property, which keeps increasing in value. Not to mention that the parks, by themselves, would be marked up far more than they would as part of Universal itself. This won't happen. And I am thankful because I get the shivers thinking how badly Disney would ruin those parks if Eisner was in charge of them.
