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Are there alternatives to the Fox acquisition that Disney might have pursued? Others were critical, pointing to the following: - Disney was acquiring businesses that
Are there alternatives to the Fox acquisition that Disney might have pursued?
Others were critical, pointing to the following: - Disney was acquiring businesses that were in their initial phases of long-term decline. According to one investment analyst: "Buying Fox and Sky cements Disney in the past, because it adds networks that are tied to the legacy ecosystem.\" In the past, bundling multiple cable channels in a package to sell to cable operators improved bargaining power, but as users are increasingly "cutting the cable,\" that strategy will yield diminishing returns. . Netix and Amazon's early-mover advantage in Video streaming, their buzz- generating content, and superb technology makes it difficult for Disney to make inroads into their user base. . The merger's greatest potential for value creation would probably be from combining the two companies' studios. However, their combined market share of about 34% might well alarm the Department of Justice, causing it to mandate divestmentsStep by Step Solution
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