Disney is presently attempting to purchase Fox Studios, which will see properties such as the X-Men, Fantastic Four, Deadpool and Wolverine back with Marvel.
The deal has yet to go through and faces competition from Comcast who is said to be offering an all-cash deal upwards of $60 billion, while Disney is offering all-stock.
Now it’s suggested the Disney Fox merger could be in trouble, which may be due in part to the controversy surrounding Disney Pixar CEO John Lasseter, who is currently on a lengthy leave of absence following allegations of sexual harassment.
John Lasseter is a huge name at Disney as their animated movies have brought in billions.
According to a newsletter put out by The Ankler, it’s speculated the controversy surrounding John Lasseter could kill off the Disney Fox merger as, among other things, it could negatively impact the price of Disney stock, which is funding the Fox deal.
It’s suggested that if Lasseter is let go, he could go to a rival company such as another movie studio or become the head of animation at Netflix, Hulu or even Apple. It’s also suggested he could simply start his own own animation studio.
So better yet, a dispatched Lasseter can pick up the phone, or even just wave his desk lamp at the phone and have a gazillion dollars in VC money air-dropped on his desk to start up his own animation company. A gazillion dollars he can use to hire away his loyalists from Disney/Pixar. Yes, there’s lots of people who wouldn’t work for him, but if he’s waving billions + stock options around, I’ll bet there’s a few who would.
Then there is the issue of replacing Lasseter as the head of Pixar, which could end in a disaster for Disney.
The article continues with mention that any or all the above could negatively effect the Disney stock:
Most important, what do any of the above scenarios do to the Disney stock price? In a month where it’s already reeling. That’s the same stock price that you have to use to fund the Fox purchase and fend off Comcast’s cash offer, on the table, awaiting a decision, also as it happens – right this minute.
Could a Lasseter Lurch be the hit that kills off the merger?
According to reports, it’s been said that Fox Studios is looking at the Disney all-stock offer as a better deal, as it will come without tax issues, as well as having the possibility that Disney’s stock will increase; however, if there are big changes at Disney and Pixar prior to the sale, which is to be voted on in July, and Disney stocks tank, we can assume Fox Studios shareholders will probably want to go with Comcast’s all-cash $60 billion deal as it’s a lot safer.
Bear in mind the newsletter article is filled with a lot of speculation, and we can probably guess that if changes are made at Pixar that it would come after Disney merges with Fox, but Disney is getting a lot of heat right now surrounding John Lasseter as a tribute album to Disneyland’s Jungle Cruise ride has stirred up controversy both within and outside the studio. Disney is said to have removed credit to John Lasseter on the album, and the Pixar CEO has been absent from marketing Incredibles 2 and didn’t go to the recent premiere.
