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00:00THIS AFTERNOON ON FOX MUCH THAT ' S A MAJOR, MAJOR STEP FORWARD. AND IT REALLY CHANGES THE LANDSCAPE IN THE WHOLE MEDIA INDUSTRY. IT WILL HAPPEN, BY THE WAY, EVEN THOUGH ANOTHER NETWORK SUGGESTED THAT COMCAST WILL COME IN THERE. RUPERT MURDOCH WANTS TO BE THE LARGEST SHAREHOLDER IN DISNEY AND THAT DEAL IS AS GOOD AS DONE. > > I WORK FOR DISNEY SO FULL DISCLOSURE, I KNOW BOB AND I ' VE KNOWN HIM FOR MANY YEARS. BUT HOW IS HE POSITIONING THE COMPANY GOING FORWARD? WHY IS THIS SUCH AN IMPORTANT STRATEGIC MOVE? HOW DOES IT COMPARE TO SOME OF THE OTHER BIG DEALS HE ' S MADE LIKE WITH MARVEL AND LUCAS FILM? > > THIS IS MUCH BIGGER. THIS IS $54 BILLION AND THIS IS REALLY HIS, I THINK, BEST LAST EFFORT TO REALLY POSITION THE COMPANY AS A DIRECT TO CONSUMER COMPANY TO COMPETE AGAINST THE NETFLIX OF THE WORLD IN ORDER TO BRING HIS DIRECT TO CONSUMER APP TO CONSUMERS AND HIS DIRECT TO CONSUMER DISNEY BRAND TO CONSUMERS, HE NEEDS MORE CONTENT AND SO HE NEEDS THE FILM STUDIO OF 21ST CENTURY FOX AND ALL THEIR CONTENT TO REALLY PROGRAM THESE TWO CHANNELS FULLY SO THEY CAN BE COMPETITIVE IN THE MARKETPLACE. > > PORTER, ALL THAT -- > > HE ' S GOING TO KILL THE CABLE INDUSTRY, TOO, BECAUSE HE ' S GOING ALL DIGITAL. > > THAT IS AN INTERESTING POINT BECAUSE DISNEY HAS MADE SO MUCH MONEY OFF THAT CABLE FOR SO LONG NOT JUST WITH ESPN WITH THE DISNEY CHANNEL AND FAMILY CHANNEL, THINGS LIKE THAT. IT IS INTERESTING TO SEVER THAT RELATIONSHIP. NOT SEVERING IT BUT TO REALLY MOVE AWAY FROM IT. THAT ' S A TOUGH MOVE. > > YEAH. HE ' S GOING TO CONTROL HULU AND TURN IT INTO A VERY SERIOUS COMPETITOR THROUGH NETFLIX AND AMAZON. HE ' S GOT ESPN ACROSS THE BOARD IN 100 DIFFERENT DIGITAL FORMATS AND WHILE THE INTEREST IN NFL IS LAGGING, THEY ' RE DOWN SOMETHING LIKE 18 TO 49-YEAR-OLD MEN IN THE LAST FIVE YEARS, 25% OF THEM HAVE MOVED AWAY AND ARE NOT FOLLOWING NFL FOOTBALL. BUT THERE ARE OTHER SPORTS. AND WHAT DISNEY IS POSITIONED TO IS NOT ONLY DOMINATE DIGITAL IN THIS COUNTRY BUT THEY ' RE GOING GLOBAL. ONE LITTLE TALKED ABOUT ASSET IS SKY IN THE U.K. THAT ' S PART OF THIS DEAL AND THAT GIVES DISNEY A VERY GOOD FRANCHISE IN BOTH ASIA AND IN EUROPE. > > IT ' S NOT JUST DISNEY WE ' RE HEARING FROM. WE ' RE HEARING FROM CBS AND VIACOM AND THE DISNEY DEAL HAS GOTTEN OTHER MEDIA COMPANY ' S ATTENTION. WHAT ' S GOING ON WITH CBS, VIACOM? > > WELL, SHERRI REDSTONE HAS TO PUT THOSE TWO COMPANIES BACK TOGETHER. AND SHE WILL. LES IS THE STICKING POINT AND WANTS ABSOLUTE UNFETERRED CONTROL. IF HE GETS IT, FINE. IF HE DOESN ' T GET IT, HE MAY HAVE TO LEAVE. HE DID TRY TO BUY CBS THREE YEARS AGO ON HIS OWN AND COULDN ' T DO IT BECAUSE THE REDSTONES HAVE ABSOLUTE CONTROL. > > IN THE PAST, LES IT APPEARS THE OUTSIDE WORLD SAYS IF I DON ' T WANT IT TO HAPPEN, IT DOESN ' T HAPPEN. IS HIS SITUATION DIFFERENT? WHY IS HE WILLING TO GO OVER HIS OBJECTION? > > I THINK THE DISNEY 21ST CENTURY FOX PUSHED OVER THE EDGE TO SAY LISTEN, I NOW -- THIS WHOLE SCALE ISSUE WHEN WE THINK ABOUT AMAZON AND Facebook AND GOOGLES DOWN THE ROAD, WE HAVE TO THINK FIVE TO 10 YEARS DOWN THE ROAD. IF YOU ARE THINKING THAT FAR DOWN THE ROAD AND YOU ' RE SHERRI REDSTONE, YOU HAVE TO PUT THE TWO COMPANIES TOGETHER. IDEALLY LES IS PART OF IT BECAUSE HE IS SO WELL REGARDED BY THE STREET. IT WOULD BE LESS INVOLVED. THAT ' S A MUCH MORE RISKY TRANSACTION. > > UNDERSCORE THAT. I KNOW LES AS WELL. I DIDN ' T WORK FOR HIM. THESE ARE VERY TALENTED MEDIA EXECUTIVES AND DONE A GOOD JOB FOR THEIR SHAREHOLDERS TO DATE BUT THE WORLD GOES ON. > > EXACTLY. > > PAUL? > > THE OTHER COMPANY THAT WILL BE KNOCKING ON THE DOOR WHEN

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