Comcast drops bid for Disney

[mr snrub]

now, see, i thought the whole thing was that the board wasnt going to get rid of Eisner as long as that bid was still up there.

 

[atownsend]

O what a shame.......... NOT!!! :sohappy: :sohappy: :sohappy:

 

[cloudboy]

now, see, i thought the whole thing was that the board wasnt going to get rid of Eisner as long as that bid was still up there.

I think that was just one analysis. And now, Disney is even more vulnerable since the stock price has dropped so much. The board has pretty much said they intend to keep Eisner around for some time.

What do people know about Steve Burke? I have a suspicion that a lot of this revolved around him, so I would be surprised if he pops up again some how.

 

[cherrynegra]

Well, I'm going to play devil's advocate and let's say that the company stock does drop. Let's say it drops to the levels a couple of years ago when it was as low as $14 or $15 a share. Why didn't someone make a bid for the company then? I can't help but feel that one of the good things that happened with the shareholder vote is that people now realize how vocal Disney shareholders are. This enthusiasm is already spreading to other companies who now realize that their shareholders aren't going to just roll over and play dead. The question then becomes is there a company that's willing to deal with such a vociferous shareholder group?

 

[garyhoov]

Originally posted by cherrynegra
Well, I'm going to play devil's advocate and let's say that the company stock does drop. Let's say it drops to the levels a couple of years ago when it was as low as $14 or $15 a share. Why didn't someone make a bid for the company then? I can't help but feel that one of the good things that happened with the shareholder vote is that people now realize how vocal Disney shareholders are. This enthusiasm is already spreading to other companies who now realize that their shareholders aren't going to just roll over and play dead. The question then becomes is there a company that's willing to deal with such a vociferous shareholder group?

You make a good point, but I think the situation is much different than it was a few years ago. At that time, before Roy and Stanley's crusade, Disney management was generally seen as competent. The stock price was down because of terrorism fears, and few companies were interested in jumping into those shark infested waters.

Now that management is perceived as weak, I would expect there are many people thinking (rightly or wrongly): "Hey! I could do a better job managing the incredible potential of Disney than they are doing."

Comcast's attempt, while not succesfull, did give people ideas. I'm sure there are many more companies, at this moment, thinking about the possibilities than there were a few years ago.

Additionally the group of investors we see on here are a very limited sampling. The retirement holdings that voted so strongly in the election are more interested in making money than protecting the legacy of Disney. They've seen their stock sink over the past 6 years, and they will consider any offer that may offer the possibility of cutting some of those losses.

It's nice to think that March's vote was a result of shareholder's "getting it", but if the stock had been performing better, I'm afraid Roy and Stanley's message would not have been nearly as effective as it was.