Negotiation Analysis for Disney and Fox Merger - Essay Sample

Published: 2023-03-14
Negotiation Analysis for Disney and Fox Merger - Essay Sample
Type of paper:  Essay
Categories:  Strategic management
Pages: 7
Wordcount: 1839 words
16 min read

Negotiation is the aspect of bargaining between two parties on the agreement factors on the fulfillment of the set goals and objectives. The element of having to have a good negotiation aids the people in their careers in making a sound decision. The main factors that push for negotiation to be undertaken are on the aspects of the negotiation on salaries and jobs, resources and promotions, with customers, and when making sales in a company. Negotiation takes center stage in the field of investment banking since it never ceases at one time. The quality of a good negotiation is accompanied by varied attributes that need to be followed for the better attainment of goals and objectives of the business being undertaken (Adjibolosoo, 2018). There is a gain of better results that are certain and inclined to aid the customers to deal with issues of acquiring a business. The long term capability is another quality that is critically harnessed for better achievement of negotiation (Brough, 2018). All the clients and the organization's operations are put into monitor and control to gain more ongoing concern of the firms. The negotiation also should be harnessed for delivering the ROI in the office for the first time of interception (Curwen et al. 2019). The basis of the 3D Negotiation approach is very paramount since it offers good training and active engagement during discussions.

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The negotiation analysis of Disney and Fox deals are based on the follow-ups of all the negotiations aspects for its successful merger to be acquired. The negotiation that was done between these two media film companies was based on it being cordial and smooth for better acquisition to be realized (Al-Hussaini). Negotiation needs both parties to have the essence of sharing information willingly on their profits and proceeds for better achievement of merging. The negotiation is traced back to a hotel as the two CEOs met and had wine as they chanted the business state and the benefits it has created on their firms (Jang, Elfenbein, & Bottom, 2018). These two CEOs comprised of Rupert Murdoch for Fox and Bob Iger for Disney company. There was an agreement on what issues impacted on their film and TV programs. Both had interests in realizing the niches that were in their business, and this brought them to outline their problems through an agreement. Murdoch found himself very open and was in a position to contact Bob for transformative ways of helping Disney and Fox in the 21st Century. Murdoch responded to Sky News by illustrating that their meeting was open and candid on discussing the issues that disrupted their businesses (Kim, 2018). On the other side, Iger talked to CNBC and said their connection with Murdoch was genuine, and also they had respect for each other. The elements of a good deal in a negotiation that has been shown by Iger and Murdoch on connection, addressing related issues, and chanting the future of the firms is vital in boosting the negotiation status to the formation of a suitable deal.

The essence of sharing information through Iger making a call to Murdoch on the merging was with the full conversation of the possibilities involved. Iger remained to speak his word as Murdoch had no seriousness in it though he supported it but had not talked to the stakeholders. The time frame of 2 weeks of calling show that quality negotiation is done promptly with follows up of period to be well established (Rebner, & Yeganeh, 2019). Disney and fox make their deal to be opened to all, and therefore, there are some aspects of trust seen in the merger. Notably, it was rarely 2 months after the call of Iger than when the two companies came into a deal. The Fox and Disney executives on the 14th of December declared their 52.4 billion dollars pact on acquisition before open of the stock market (Riemenschneider, 2019). The news released by the executive members of Fox and Disney showed how happy Murdoch and Iger were celebrating on their achievements of an acquisition. Both of them had ranked on their priorities through their executives thus giving the negotiation more essence on credibility.

The sources also depict that Fox-Disney negotiations were held with high levels of secrecy. The senior executives of both firms were found to have quiet discussions out of the public. In the deal, there is some essence of no outward means that showed that Fox was willing to sell without checking on the financial positions they were in. There were low efforts on assembling the data on presentations of the company's different divisions (Schere, 2018). The issue of secrecy in this context of Disney and Fox deal remains to be an aspect of both firms knowing their target price and the walkaway terms. There was full consent of both companies facing different problems that would be solved by the other and vice versa. For successful negotiation to be attained, there should be some levels of confidential of information within the executive alone for the avoidance of other competitive firms doing the same strategy (Sergi, Owers, & Alexander, 2019). The target on the stock market shows that both companies were fully knowledgeable on the funds and profits to be derived from shares of bonds invested. Fox seems to be the first to make the first offer as a negotiation strategy that aid in getting the target price put in place for the thriving of their business (Stohr, Noskova, Kunz-Kaltenhauser, Gaenssle, & Budzinski, 2019). The offer price made is comparatively lower than the stock thus aid in boosting of the reservation p[rice of clients

David Faber, a reporter at CNBS, disclosed the information on the conversations between Fox and Disney. The report made the industry to be very stunned and thrived in how it conducted its programs of TV and films. The negotiation of the two companies took advantage of the secrecy and confidential aspects of information that later comes to aid them to boost their operations (Smith, 2018). There were also discussions created by other competitors of Comcast and Verizon. Fox got a lot of engagement form different firms on the auction process, and Fox and Disney were all benefiting from the interests created by Sony Pictures and Verizon on becoming the bidders. The involvement of other parties in the business despite the inconveniences they were before thriving after a deal is made through suitable negotiation practice. Despite the invitation of various companies, Murdoch seemed to get more interest in Disney. The level of engagement that Comcast expected failed, and the two companies had to complete on the line of making a merge. Iger is seen to be very excited about the levels of negotiations that were carried out between him and Murdoch to be cordial and smooth. Disney and Fox's firms had no lengthy discussions thus showing the settings not to be lower as expected. The interest of both parties is on solving the issues of their firms and trying to get a competitive advantage in the market.

Iger makes a report that the negotiation started with a low gain of shots and uncertainties. Conversely, with time, everything rolled on smoothly through advocacy for communication and also the essence that was brought out. The idea of the development of a merger develops with time as long as you share the common interest of achievement. Negotiation of Disney and Fox, therefore, possess the aspect of having ideas and encouraging candid conversation for faster solving of various issues (Turner & Kenway, 2018). The conversation that was shown in this case showed the satisfaction of all parties in the system. A good deal should be well harnessed and negotiated for the making of counter offers that both parties feel well and acquainted with. Disney seems to have well conversant with the pre-negotiation before Iger went into a deal since they are independent in how they run their different shops. The ability to have mega-mergers by Disney makes it more involving and can gain more from its competitors by having a good CEO Iger (Zarei, Sharifi, & Chaghouee, 2018). Iger is an excellent negotiator and knows well about the market and where to gain more strategies for survival in the film and TV programs.

In recent times, Fox has had a good reputation on the instances of having pleasant downright Darwin moments. The aspect of having a well sharped and unruly reputation of Fox provides a good platform for Disney to explore the market and sell its products providently (Zimmerman, Chang, & Ulrick, 2019). The aspect of having to establish the gains given by the other company in negotiation has been attained fully by Disney having merged with Fox.

In summary, the negotiation analysis of Disney and Fox deal is well stipulated with all the quality and measures of having a suitable conversation. The agreement is well stipulated though Disney seemed to get more advantageous, but all that are strategies of a proper negotiation in any deal. Satisfaction and engagement on collective agreement of all parties have been met in the contract and this remains the primary goal of negotiation in the current-world.


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