Would Disney be Dominant if Acquired by Comcast?

Imagine Comcast Presents: Disney World, with a flying pig that breathes fire and travels at warp speed when it farts. The sheer absurdity of such an acquisition highlights the astronomical scope and influence of these media giants.

Regulatory Hurdles and Historical Context

Historically, regulatory bodies have been vigilant in preventing monopolies, as seen in the split of ABC and NBC in the pre-television era. Such measures would likely prevent a merger of these companies again, safeguarding the competitive landscape.

Universal and Disney: A Distinct Partnership

In the early 20th century, Universal and Disney shared a unique relationship, but it was marred by conflict, particularly when Universal took control of Oswald the Lucky Rabbit. Yet, today, Universal and Illumination collaborate on a Super Mario Bros. film, which coincidentally aligns with Nintendo's dominance in the gaming industry, just as Disney has in animation and theme parks.

Content Carriage Agreement

Despite the collaboration, any major acquisition would require scrutiny from the US court regarding antitrust laws. A deal involving Comcast and Disney would face significant regulatory challenges, given Comcast's existing ownership of multiple media properties, including a film studio, TV production, animation, and theme parks, not to mention NBC and its broadcast network. The potential impact on market share would likely result in a rejection or forced breakup of Disney.

The Fox Acquisition Precedent

The recent acquisition of 21st Century Fox as a reminder that some aspects of the deal were specifically excluded. Even the transfer of certain shows and rights did not change the fact that Fox News remained separate, and any attempt to include Fox Sports would have been met with significant legal hurdles due to the Disney-owned ESPN, their direct competitor.

With this in mind, the US Justice Department would likely conclude that such an acquisition would give Comcast too much market power in multiple sectors, leading to a case being brought to block the deal altogether.

Will Disney always stand alone, or could a hypothetical acquisition reshape the entertainment landscape? The answer remains firmly in the realm of speculation, but considering the current regulatory climate and ownership structures, it is extremely unlikely.