Both Comcast and Disney are climbing today. While one or the other will "win" the bid for Fox, it will be ugly for either the winner or the loser.
Both need the content provider to bootstrap their recent difficulties. Whoever wins will experience the "Winners Dilemma".
When the market is so high, the winners in these deals ALWAYS pay too much. It has happened so many times before. Also, they are going to spend a lot of time and money integrating operations. That is no easy matter. Stress city! It will take a long time for this purchase to really "add value".
I picture two big brutes fighting it out in a ring. In the end, they both will be bloodied and beat up. The winner will be the promoter – the investment banks! No blood there. Just cold cash. Thank you very much!
The investment bankers are probably already shopping for their new high end purchases - cars, jewels, vacations, etc. The getting is good, so they are definitely getting.
In the jungle, the lion is definitely NOT sleeping tonight!
