Comcast makes 66 Billion offer for Disney

Dumbobuzz · Post by **Dumbobuzz** » Wed Feb 11, 2004 5:46 am

Comcast proposes buying Disney
Largest U.S. cable TV firm values deal at $66 billion
Updated: 7:26 a.m. ET Feb. 11, 2004

NEW YORK - Comcast Corp., the largest U.S. cable television operator, on Wednesday said it has proposed buying Walt Disney Co. in a deal worth $66 billion including assumed debt.

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Comcast proposed exchanging 0.78 of a Comcast class A share for each Disney share.

Interesting, very interesting. Things are getting curiouser and curiouser.

MickeyMouseboy · Post by **MickeyMouseboy** » Wed Feb 11, 2004 5:56 am

Having Eisner as CEO this could become a reality. I think if he doesnt get re-elected I could see him taking revenge by selling the company off. but I think the board and the shareholders have to agree with this don't they?

2099net · Post by **2099net** » Wed Feb 11, 2004 5:58 am

I like this quote in a news story:

"It raises the question of whether Comcast would then go back to to Pixar and then hammer a deal as Pixar was really the future of Disney animation. There is a giant void in Disney's entertainment offerings without Pixar. "

Er. No. How can Pixar be the future of Disney animation? It's Pixar animation, and Jobs wouldn't have it any other way.

Anyhow, here's some links:

News
http://www.reuters.com/newsArticle.jhtm ... ID=4333411

Reactions
http://www.reuters.com/newsArticle.jhtm ... ID=4333477

Reuters have updated the initial story
http://www.reuters.com/newsArticle.jhtm ... ID=4333966

Reuters wrote:Comcast used a similar "bear hug" campaign in July 2001, when it launched an unsolicited proposal to buy AT&T Corp.'s cable assets, then known as AT&T Broadband. Over a year later, it successfully closed that deal for $72 billion.

Interesting...

2099net · Post by **2099net** » Wed Feb 11, 2004 6:00 am

MickeyMouseboy wrote:Having Eisner as CEO this could become a reality. I think if he doesnt get re-elected I could see him taking revenge by selling the company off. but I think the board and the shareholders have to agree with this don't they?

Having Roy as CEO could have made this a reality years ago.

A CEO cannot sell a company on without the shareholders agreement. However, if Comcast can somehow buy enough shares themselves, there's little Eisner or the other shareholders can do.

Dumbobuzz · Post by **Dumbobuzz** » Wed Feb 11, 2004 7:06 am

What this offer will do is bring continued discussion to the value of Disney and are the shareholders getting enough return for their investment. As one of the other posts had a nice chart of Disney return on investment compared to the rest of the S&P, Disney has lagged behind. Comcast may not purchase the company but it has put Disney in play, and other unsolicited or solicited offers could be forthcoming.

During the greenmail scare of the 80's Disney changed management and started producing some ot the modern classics that we know today. Maybe the focus will turn to quality again, let's hope.

2099net · Post by **2099net** » Wed Feb 11, 2004 7:23 am

Well, firstly, no company wants to aqquire another company unless they think that company is capable of doing more. After all, they have to offer the going rate, so they must think that they can do better in the long run.

No does this offer mean that Comcast thinks Eisner is underperforming? Possibly. But don't forget Comcast have their own talents and hardware that can add to Disney's earning potential. In addition, this is in effect a proposed a media merger, something that has been in the news recently thanks to the Universal/NBC merger.

I think Comcast has sensed that the SaveDisney campaign has made Eisner and even Disney itself appear weaker than normal, and has made this public to ride on that perception. But don't fool yourselves. If Comcast did get control of Disney, it's unlikely to be run in a manner similar to Roy's proposals. In fact, it's likely to be run even more commercially than Eisner is running Disney now.

bean:therio · Post by **bean:therio** » Wed Feb 11, 2004 7:25 am

I don't think that this bid is going to be enough, especially because Disney's stock is somewhat undervalued anyway. However: where Comcast will fail other, bigger companies might succeed. Are these the last days of Disney as an independent company? Brrr...

MickeyMouseboy · Post by **MickeyMouseboy** » Wed Feb 11, 2004 7:35 am

I just couldn't see Disney been under a mother company or be owned by another company. I like Disney been it's own independent company with no merge and junk like that.

Dumbobuzz · Post by **Dumbobuzz** » Wed Feb 11, 2004 7:50 am

Do not disagree 2099net, but this may spurn the current board to look at shedding some assests to lower current debt to boost bottom line. Disney Corp will probably see some changes because of this offer. The changes may have occurred naturally but this will jump start some items. Disney is viewed as weak with the current board conflict with Roy and the Pixar deal. The stockholder has seen a nice increase the past 12 months or so, but the longterm investor is disappointed with the return over the past 10 years. The stock is up 15.7% so far today.

Mr. Toad · Post by **Mr. Toad** » Wed Feb 11, 2004 8:04 am

I saw a couple of things I though needed correcting

1) Roy Disney never wanted to be CEO. He felt he did not have the full skill set to run Disney. He probably had the opportunity in 1984 but did not want it. At this point he is far too old to do it.

2) Michael Eisner wants no part of this deal. Comcast initially approached hm but he would not discuss it. Now Comcast has gone to the Board of Directors. If they refuse, it may become a hostile takeover. I would imagine if Comcast wins out, then Eisner and most of the Board are gone.

MickeyMouseboy · Post by **MickeyMouseboy** » Wed Feb 11, 2004 8:11 am

Hostile take over? can a company take over another company when they don't want to sell?

Dumbobuzz · Post by **Dumbobuzz** » Wed Feb 11, 2004 8:15 am

A corporation is made up of stockholders. Each stockholder has shares of that company. If a majority of shares, 50.0001 percent of the voting shares vote for a sale, the company can be sold.

MickeyMouseboy · Post by **MickeyMouseboy** » Wed Feb 11, 2004 8:20 am

oh I see. That sucks. They should just remove Eisner and the company will get better

AwallaceUNC · Post by **AwallaceUNC** » Wed Feb 11, 2004 10:02 am

I definitely hope Eisner is removed and replaced with a less commercially-minded and more magically-minded CEO. This company represents so much more than a price tag, and their very success is dependent upon that special something that they do represent. It is the magic of a dream, and that dream was Walt's. I hope that dream isn't whored away to another company looking to exploit it for profit more than even Eisner has now. I can't imagine that Walt wanted his company to be owned by someone like Comcast, so hopefully that dream will be kept alive. That's one of the many reasons I support Roy... the Disney family must stay involved in the Disney company, and someone must tend to the magic that WDC manufactures!

-Aaron

Mr. Toad · Post by **Mr. Toad** » Wed Feb 11, 2004 10:03 am

MMB - A hostle takeover is when management and the board are not in favor of the takeover attempt. When the management/board refuses the acquiring company makes the offer directly to the public. If more than 50% of the shareholders respond positively then the merger/takeover happens.

Sometimes a companys articles can specify that greater than a 50% percentage is required. If so then that percentage has to be met.

Also, there can be poison pills which can make a company less desirable in case of a takeover ttempt.

I do not believe Disney has either of these.

Mr. Toad · Post by **Mr. Toad** » Wed Feb 11, 2004 10:04 am

MMB - A hostle takeover is when management and the board are not in favor of the takeover attempt. When the management/board refuses the acquiring company makes the offer directly to the public. If more than 50% of the shareholders respond positively then the merger/takeover happens.

Sometimes a companys articles can specify that greater than a 50% percentage is required. If so then that percentage has to be met.

Also, there can be poison pills which can make a company less desirable in case of a takeover ttempt.

I do not believe Disney has either of these.

indianajdp · Post by **indianajdp** » Wed Feb 11, 2004 4:03 pm

Well if this comes to fruition what's the over/under on Eisner getting pink-slipped? He'd actually receive a healthy severance package I'm sure, but my guess is he'd be gone faster than you can say "Cinderella III: This Time it's Personal".

Jack · Post by **Jack** » Wed Feb 11, 2004 4:08 pm

Well, I honestly can't give my opinion on this. As Netty said in another thread, any positive effects Comcast may promise can't be taken entirely seriously, as they are trying to win over shareholders and the public. I'd prefer it if Disney were its own company, but I have no clue wether a joining with another corperation would yeild good or bad results.

MickeyMousePal · Post by **MickeyMousePal** » Wed Feb 11, 2004 6:53 pm

Is this good news or bad news.

It could be bad news what will happen to Disneyland?

Will everything be changed?

This is horrible news.

What would Walt Disney do if he was still alive?

MickeyMouseboy · Post by **MickeyMouseboy** » Thu Feb 12, 2004 3:38 am

If Walt was alive he wouldnt never have let his company go as low as it is now and he wouldnt have sold! I think Disney should stay independent as it has been for many years and hopefully many years to come. I think the board and shareholders listen to Roy and Stan and get Eisner out and replace them with someone else before it's too late. oh yeah they should send Eisner along with Cinderella 2 and every stupid sequel prints with him!

I couldnt see a Disney movie with the title

Walt Disney Pictures a Disney/Comcast Company

It's not magical and Disney will loose all it's magic! i would never see Disney like Disney again. I will just keep what I have and move on to greener pastures (maybe Pixar or Dreamworks <~~~ heaven forbid!)

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Comcast makes 66 Billion offer for Disney

Comcast makes 66 Billion offer for Disney