Will Disney Buy Universal?

ORLANDO— The Walt Disney Co. appears to be watching the tribulations of Vivendi Universal, which owns competing theme parks such as Universal Studios Hollywood and Islands of Adventure in Orlando, according to the Orlando Sun-Sentinel. A Disney officials comment last week indicated that the company could be interested in buying some assets of Vivendi Universal, which is widely reported to be ridden with debt. “Any assets that are in our core business that come available, we would certainly take a look at,” Disney CFO Thomas Staggs told Reuters. “Our primary focus is our core business. “To the extent we can do an acquisition that is not dilutive to the earnings or cash flow, well take a look,” said Staggs. Rumors of a sale have been around since Vivendi CEO Jean-Marie Messier was ousted and replaced by Jean-Rene Fourtou, who said he plans to lower Vivendis debt load by “significant asset disposals,” according to the published report. Selling off its entertainment business, which includes theme parks, movie studios and television, could be a quick way for the conglomerate to reduce debt without cutting off its core assets in the sewer and water industry. SOURCE: Orlando Sun-Sentinel