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EDITORIAL COMMENT
ELSPETH TAVARES
The Issue Rarely Tabled Is The COST In HUMAN
CAPITAL Of The Walt Disney Takeover Of Fox
& Other High Profile Mergers & Acquisitions
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The Walt Disney acquisition of the segments of Fox it was able to acquire sets it on a course that will navigate the international oceans and secure its place on the worldwide Streaming map. Netflix, the indie that innovated the pace and race where it became a winner, sees Disney like any number of major companies, and has observed and can now surf fully into the international waters, on the streaming platform entirely ‘risk free.’ Kudos to the independents that continue to demonstrate and lead the vanguard in ‘entrepreneurial spirit’ – that is the foundation of any industry – and especially in entertainment for big and small screen, where the risk is inherently uncertain and high.
With the catalogue of content now at its disposal, the US71.3billion deal is a feather in the cap in the corporate world for Robert Iger, the chairman and CEO, Walt Disney Company, and Captain of the Dreamboat for its investors. In the fiscal year 2018, the Walt Disney Company generated a total revenue of 59.43 billion U.S. dollars, up from 55.14 billion in 2017.
The phenomenal impact of streaming is not the issue, with the advent of technology constantly gathering pace, it’s an evolution of ability for both indies and the major companies whether in the entertainment sector or industry at large to ‘distribute.’ 
Walt Disney Studios Headquarters, Alameda, CA
What is of grave ongoing concern and rarely tabled is the cost in Human Capital, the sum consolidation of Disney and Fox assets under one roof, which will result in, some experts estimate, a minimum loss of 4,000 jobs across the divisions. When AOL bought Time Warner back in 2011, approximately some 2,000 jobs were lost, people mostly in middle age with kids at college. With these recent Mergers & Acquisitions (M&A) including the AT&T acquisition of Time Warner, job loss 4,600 – estimates differ because of the combined company of telephony and entertainment – AT&T revenue for the twelve months ending December 31, 2018 was $170.756B, a 6.36% increase year-over-year. AT&T annual revenue for 2018 was $170.756B, a 6.36% increase from 2017.
Sheila Lewis, who worked at AT&T’s Detroit call center until it closed in Dec (2017) said: “I put in 20 years at AT&T, and then got laid off along with 116 of my coworkers 10 days before Christmas. The way the company did it isn’t fair or respectful. It’s also bad business, because the overseas contractors doing our work cost the company money because of their poor service and harm to the AT&T brand.” * source cwa-union.org/
“AT&T is breaking its promise to workers, customers, and communities across the country,” said CWA District 4 Vice President Linda L. Hinton. “The company pledged to invest in U.S. workers if the tax bill passed, but they’ve done just the opposite. Companies like AT&T must renew their commitment to working people and the towns that depend on these jobs.” * source cwa-union.org/
What is the collective HUMAN CAPITAL COST & LOSS TO THOUSANDS OF INDIVIDUALS LIKE SHEILA LEWIS? Already computers have taken over fundamental human interaction –it’s rare to speak on the phone to a human being across all the strata of media and industry.
The deep societal issue is the thousands of individuals working at Disney, Fox and AT&T not knowing if they have job security.
The corporate endgame is as Robert Iger, the chairman and chief executive officer of the Walt Disney Company states (quotes from several sources):
“This is an extraordinary and historic moment for us – one that will create significant long-term value for our company and our shareholders.”
“Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the pre-eminent global entertainment company, well-positioned to lead in an incredibly dynamic and transformative era.”
“We're committed to moving as quickly as possible to provide clarity regarding how your role may be impacted”.
When will conglomerates take unreservedly into account that in their quest for world domination – its PEOPLE are the company? It is PEOPLE who create shareholders value. It is PEOPLE who when valued is accrued are let go and take the IMPACT.
Mark Zuckerberg, after exploiting and enjoying the spoils of world domination – as the genie in the form of greed is let out of the bottle and rears its ugly head – is now suggesting Governments need to intervene. Yes – it’s time Governments intervened before the ‘evolved western world’ is completely run by AI ‘artificial’ intelligence – in all its formations – with fake news the tip of the iceberg.
Progress, in the final analysis on the human factor scale at the expense of ‘any individual’s ability to live a life and provide for their family,’ is no progress at all for humanity.
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