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New Year's what does this say about where we're headed and how we still.
I guess and in the emergency round are we in the recovery -- where our way.
I would say were more in the emergency room in the recovery room I do agree that some financing is available it's only available to the quality companies.
Companies that -- like Disney or companies that have a lot of where -- fault anyway who really don't need the financing it's sort of -- -- Saying that in you know to -- time to go for bank financing is when you really don't need the bank financing.
And a company like Disney that has a lot of resources really doesn't need bank financing that.
Have to still get done and that's one of the reasons why -- -- actually sold out was that it couldn't get the financing to finance it's growth.
So it needed a bigger player that could access the capital markets and that's Disney.
Other players out there even though some acquisition financing may be available.
Don't have the quality company with a quality.
Cash flow that banks now that we have much higher standard too so.
It's sort of like you know the gas pumps are open but only to the good cars.
-- TV you can't keep a close -- and the credit markets the debt markets what's actually start to move and not move a lot of people believe that down if if it weren't there.
I don't -- hold very -- would be good.
Are you seeing credit spreads east and what is that a reflection -- in terms of their ability to finance their dad or.
Or not perhaps need to partner with the -- of -- life.
Both in I -- the media stocks and cable stocks in particular and they've been able to access the credit markets especially the companies like CBS and Viacom.
Who have been very much tied to the economy because the advertising portion of their revenue.
That but they've been able access now because of the tightening of the spreads.
And Andy and the confidence on the investors the side that's what we've seen the bottom we're past the bottom things are starting to improve.
Sequentially in terms of the ad revenue and economy.
So can -- be the the spreads are giving attractive.
The -- -- the the coupons are giving -- levels that didn't make sense to that extend maturities for the for the media companies.
And -- what does this say about the media business right now because advertising obviously is big issue were in the media business here and mountain and there's a lot of expected changes.
How did the rest of the media companies react to this this deal particularly Disney marvel and and what do you make of it.
But I think that tongue and Disney is making allies long term strategic move third there and they're gaining a lot of incremental -- market -- because they essentially had no business relationship with -- so.
That leaves some of -- other partners sort of -- left field Sony.
News corps that fox had the relationship been developing the iron not a the X-Men franchise.
It did so there there are few pure plays available in this space and it's it and do the media and entertainment sectors one where he needs scale.
Economies in order to have been negotiating power with all the other large media conglomerates.
So I don't expect to have.
A rash of deal making -- might still be a couple more.
In deals that make sense in the market in the media at the space but.
In Disney has the capacity and they don't have to -- beneath that equity or debt markets to do this deal they have more than enough cash on the balance sheet for the cash portion of the deal.
And 59 million shares that they're -- issue they can easily.
And I just in the regular.
Stock purchase program -- Disney listening to -- in a pretty unique space whereby they do have.
Susceptibility to the ad market we've seen improvement in the past four months they do have susceptibility to the consumer.
On -- on the and then decline in dvd sales -- month.
Attendance at the parks has stepped up but this business spending by the consumers there has been as -- and -- been challenged -- Did that is Disney's -- one of them because of their long term core competency in developing brands they have the confidence to be able to go out and do something like this.
Roger past recessions taking a look back where do you tend to see that greatest amount of merger and acquisition activity and why.
You probably see it in that in a lot of -- sectors that are -- filed.
Have a lot of activity otherwise so we see business services professional professional services consumer services sort of you know come back sooner rather than later because -- not as much capital intensive.
Investment in them.
-- -- gonna see a lot of activity there as this recession sort of bottoms out and and we come out.
Come out of it.
-- and it's probably see a number of more activity in the technology sector computer services.
And we are number answers seeing that they've been brisk.
Some of the actor he's been -- in there and -- this recession recovery you'll see some more activity in those industries that are less.
Capital intensive at any point at the beginning health care has been on a roll over the past couple years does continue.
I think it will and it's been a little bit of a -- two cities pharmaceutical and Biotech sectors of health care have been feverish pace.
The health care services area has been much lower that's a sector that's much more influenced by the declining credit markets -- fun and mobile activity.
And Health Care Reform legislation is also limited amount of activity there -- companies worry about what it means -- for them is there.
For example and -- a viable insurance business and that's affecting managed care stocks.
I think that as the markets improve.
That that'll be of positive throughout their services medical products and -- should also see more on the activity I think we'll continue to see pharmaceutical Biotech actively being a very high levels.
Well I guess the good news here is that credit is listening that's gonna.
-- and acquisitions create synergies productivity the bad news is often times people lose their jobs hump and that's not good right now gentlemen thank you very much good fashion.
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