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Comcast Could Buy Disney
- Thread starter yen sid98
- Start date
jcraycraft
Member
Say it’s not so......... is this April 1st ???????.
here is a quick link on MSNBC http://www.msnbc.msn.com/id/4239739/
here is a quick link on MSNBC http://www.msnbc.msn.com/id/4239739/
bjunderwood
Member
would that be bad or good? wouldnt that boot eisner?
prisoner
New Member
Both? Neither? It depends what Comcast really intends to do with Disney.
It seems clear they want it because of ABC, ESPN, and the various other channels Disney has. Probably also its movies.
There is no indication, however, that they have any interest at all in the theme parks or any other component of the company. BUT, there is no indication they don't.
A worst case scenario is that they buy Disney, and then sell off various parts to finance the takeover.
A best case scenario is that they buy it, synergize their resources, magic happens here, and they make money.
Hard to say. There are already former Disney executives in their management, so it is not out of the question that they absorb Eisner.
On the other hand, Eisner rejected a more friendly proposal, so they're resorting to this hostile takeover. They may not like him after that.
Fire up the conspiracy theory engine!
Tramp
New Member
According to Reuters
Comcast Wants Disney for $54 Billion
February 11, 2004 08:09:00 AM ET
NEW YORK (Reuters) - Comcast Corp. (CMCSA) on Wednesday launched an unsolicited proposal to buy Walt Disney Co. (DIS) for more than $54 billion in stock to join the largest U.S. cable operator with one of the most storied U.S. media companies known for its film studio and theme parks.
If successful, the deal would vault Comcast into one of the world's largest media companies combining Disney's film studio, ABC television network, ESPN sports network and theme parks with Comcast's 21 million cable subscribers.
It would pit Comcast against Time Warner Inc. (TWX) and News Corp. (NWS) as media conglomerates that combine large programming assets with distribution outlets like cable and satellite.
Comcast proposed exchanging 0.78 of a Comcast class A share for each Disney share, which values Disney at $26.47 a share and represents a 10 percent premium over Disney's share price, based on Tuesday's closing share prices.
Comcast valued the deal at $66 billion, including the assumption of $11.9 billion in debt.
Shares of Disney rose to $27.90 in pre-market trade, from a close of $24.08 on Tuesday. Shares of Comcast fell to $32.15 from a closing price of $33.93 on Tuesday.
Comcast said it was making its unsolicited proposal public after Disney Chief Executive Michael Eisner declined to enter discussions.
The offer comes as dissident former directors Roy Disney, the nephew of company founder Walt Disney, and Stanley Gold, are trying to oust Eisner, whom they accuse of mismanaging Disney over the past decade. Roy Disney has been lobbying institutional shareholders to vote against the reelection of Eisner and three other directors at the upcoming shareholders meeting early next month.
Disney has started to fight back with a public campaign of its own, citing the film studio's No. 1 box office performance last year and its expectation for growth in earnings per share at least 30 percent this fiscal year.
A Disney meeting for institutional investors and analysts is set to begin on Wednesday in Orlando, Florida.
``The Disney board is under tremendous pressure from former dissident members Roy Disney and his supporters, which would indicate that the board may be receptive to this buyout offer,'' said Timothy Ghriskey, portfolio manager with Ghriskey Capital Partners.
``One would have to think that the Comcast bid would have to be raised significantly to get this deal done, given the lack of much premium in the current bid and a still somewhat depressed Disney stock price,'' he said
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.
Comcast Wants Disney for $54 Billion
February 11, 2004 08:09:00 AM ET
NEW YORK (Reuters) - Comcast Corp. (CMCSA) on Wednesday launched an unsolicited proposal to buy Walt Disney Co. (DIS) for more than $54 billion in stock to join the largest U.S. cable operator with one of the most storied U.S. media companies known for its film studio and theme parks.
If successful, the deal would vault Comcast into one of the world's largest media companies combining Disney's film studio, ABC television network, ESPN sports network and theme parks with Comcast's 21 million cable subscribers.
It would pit Comcast against Time Warner Inc. (TWX) and News Corp. (NWS) as media conglomerates that combine large programming assets with distribution outlets like cable and satellite.
Comcast proposed exchanging 0.78 of a Comcast class A share for each Disney share, which values Disney at $26.47 a share and represents a 10 percent premium over Disney's share price, based on Tuesday's closing share prices.
Comcast valued the deal at $66 billion, including the assumption of $11.9 billion in debt.
Shares of Disney rose to $27.90 in pre-market trade, from a close of $24.08 on Tuesday. Shares of Comcast fell to $32.15 from a closing price of $33.93 on Tuesday.
Comcast said it was making its unsolicited proposal public after Disney Chief Executive Michael Eisner declined to enter discussions.
The offer comes as dissident former directors Roy Disney, the nephew of company founder Walt Disney, and Stanley Gold, are trying to oust Eisner, whom they accuse of mismanaging Disney over the past decade. Roy Disney has been lobbying institutional shareholders to vote against the reelection of Eisner and three other directors at the upcoming shareholders meeting early next month.
Disney has started to fight back with a public campaign of its own, citing the film studio's No. 1 box office performance last year and its expectation for growth in earnings per share at least 30 percent this fiscal year.
A Disney meeting for institutional investors and analysts is set to begin on Wednesday in Orlando, Florida.
``The Disney board is under tremendous pressure from former dissident members Roy Disney and his supporters, which would indicate that the board may be receptive to this buyout offer,'' said Timothy Ghriskey, portfolio manager with Ghriskey Capital Partners.
``One would have to think that the Comcast bid would have to be raised significantly to get this deal done, given the lack of much premium in the current bid and a still somewhat depressed Disney stock price,'' he said
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.
prberk
Well-Known Member
I hope it does not work out. Comcast would likely sell off assets. And it only continues the dilution of the Walt Disney Company's meaning as anything more than a "brand" for someone to stamp on things.
That was not always the case. I hope shareholders will choose to use this whole situation to refocus the company. It wouldn't be a bad idea to consider selling them ABC and ESPN, if they will take the deal, and start to refocus the company.
But I do not even believe the management at WDC would even consider that.
It is about power and position for some now, and we can hope that the public's sense of Walt Disney as a company to trust for innovation and family values will win out.
That was not always the case. I hope shareholders will choose to use this whole situation to refocus the company. It wouldn't be a bad idea to consider selling them ABC and ESPN, if they will take the deal, and start to refocus the company.
But I do not even believe the management at WDC would even consider that.
It is about power and position for some now, and we can hope that the public's sense of Walt Disney as a company to trust for innovation and family values will win out.
SpaceRacer2003
New Member
Text of letter to TWDC from Comcast
Check out http://www.comcast.com for the official statement.
There will be an 11am eastern webcast of the confrence call between the two companies to discuss the merger, click here:Webcast
* * * * *
February 11, 2004
Mr. Michael D. Eisner
The Walt Disney Company
500 South Buena Vista Street
Burbank, California 91521
Dear Michael:
I am writing following our conversation earlier this week in which I proposed that we enter into discussions to merge Disney and Comcast to create a premier entertainment and communications company. It is unfortunate that you are not willing to do so. Given this, the only way for us to proceed is to make a public proposal directly to you and your Board.
We have a wonderful opportunity to create a company that combines distribution and content in a way that is far stronger and more valuable than either Disney or Comcast can be standing alone. To this end, we are proposing a tax-free stock for stock merger in which Comcast would issue 0.78 of a share of its Class A voting common stock for each share of Disney. This represents a premium of over $5 billion for your shareholders, based on yesterday’s closing prices. Under our proposal, your shareholders would own approximately 42% of the combined company.
The combined company would be uniquely positioned to take advantage of an extraordinary collection of assets. Together, we would unite the country’s premier cable provider with Disney’s leading filmed entertainment, media networks and theme park properties. In addition to serving over 21 million cable subscribers, Comcast is also the country’s largest high speed internet service provider with over 5 million subscribers. As you have expressed on several occasions, one of Disney’s top priorities involves the aggressive pursuit of technological innovation that enhances how Disney’s content is created and delivered. We believe this combination helps accelerate the realization of that goal–whether through existing distribution channels and technologies such as video-on-demand and broadband video streaming or through emerging technologies still in development–to the benefit of all our shareholders, customers and employees.
We believe that improvements in operating performance, business creation opportunities and other combination benefits will generate enormous value for the shareholders of both companies. Together, as an integrated distribution and content company, we will be best positioned to meet our respective competitive challenges.
We have a stable and respected management team with a great track record for creating shareholder value. In fact, our shares have consistently outperformed leading stock indices by significant margins, including the S&P 500 by a margin of more than 2 to 1 since Comcast went public in 1972.
The Comcast management team greatly appreciates and is highly respectful of the Disney heritage. We know that there are many talented executives at Disney who we envision would also play a key role in managing the combined company. We also would welcome directors from your Board joining our Board.
We have analyzed the issues associated with regulatory approval and are confident that all necessary approvals can be obtained in a timely fashion. Given the landscape that has evolved in our industry over the past few years, the creation of integrated content and distribution companies is essential to increasing the level of competition. The FCC’s existing program access and program carriage rules ensure that the combined company will continue to make all of its satellite-delivered national and regional cable networks available on a non-exclusive, non-discriminatory basis and that there will be no discrimination against unaffiliated programming services, all consistent with the undertakings made by News Corp. in its recent acquisition of DirecTV.
We hope that the Disney Board will pursue the opportunity that this proposed combination presents to your shareholders.
Very truly yours,
Brian L. Roberts
President and Chief Executive Officer
Cc: Board of Directors,
The Walt Disney Company
***
Check out http://www.comcast.com for the official statement.
There will be an 11am eastern webcast of the confrence call between the two companies to discuss the merger, click here:Webcast
* * * * *
February 11, 2004
Mr. Michael D. Eisner
The Walt Disney Company
500 South Buena Vista Street
Burbank, California 91521
Dear Michael:
I am writing following our conversation earlier this week in which I proposed that we enter into discussions to merge Disney and Comcast to create a premier entertainment and communications company. It is unfortunate that you are not willing to do so. Given this, the only way for us to proceed is to make a public proposal directly to you and your Board.
We have a wonderful opportunity to create a company that combines distribution and content in a way that is far stronger and more valuable than either Disney or Comcast can be standing alone. To this end, we are proposing a tax-free stock for stock merger in which Comcast would issue 0.78 of a share of its Class A voting common stock for each share of Disney. This represents a premium of over $5 billion for your shareholders, based on yesterday’s closing prices. Under our proposal, your shareholders would own approximately 42% of the combined company.
The combined company would be uniquely positioned to take advantage of an extraordinary collection of assets. Together, we would unite the country’s premier cable provider with Disney’s leading filmed entertainment, media networks and theme park properties. In addition to serving over 21 million cable subscribers, Comcast is also the country’s largest high speed internet service provider with over 5 million subscribers. As you have expressed on several occasions, one of Disney’s top priorities involves the aggressive pursuit of technological innovation that enhances how Disney’s content is created and delivered. We believe this combination helps accelerate the realization of that goal–whether through existing distribution channels and technologies such as video-on-demand and broadband video streaming or through emerging technologies still in development–to the benefit of all our shareholders, customers and employees.
We believe that improvements in operating performance, business creation opportunities and other combination benefits will generate enormous value for the shareholders of both companies. Together, as an integrated distribution and content company, we will be best positioned to meet our respective competitive challenges.
We have a stable and respected management team with a great track record for creating shareholder value. In fact, our shares have consistently outperformed leading stock indices by significant margins, including the S&P 500 by a margin of more than 2 to 1 since Comcast went public in 1972.
The Comcast management team greatly appreciates and is highly respectful of the Disney heritage. We know that there are many talented executives at Disney who we envision would also play a key role in managing the combined company. We also would welcome directors from your Board joining our Board.
We have analyzed the issues associated with regulatory approval and are confident that all necessary approvals can be obtained in a timely fashion. Given the landscape that has evolved in our industry over the past few years, the creation of integrated content and distribution companies is essential to increasing the level of competition. The FCC’s existing program access and program carriage rules ensure that the combined company will continue to make all of its satellite-delivered national and regional cable networks available on a non-exclusive, non-discriminatory basis and that there will be no discrimination against unaffiliated programming services, all consistent with the undertakings made by News Corp. in its recent acquisition of DirecTV.
We hope that the Disney Board will pursue the opportunity that this proposed combination presents to your shareholders.
Very truly yours,
Brian L. Roberts
President and Chief Executive Officer
Cc: Board of Directors,
The Walt Disney Company
***
Terp02
New Member
If this ever went through, it would be the worst thing that has happened in recent years. Not only does Comcast own almost of the TV/computer cable systems along the East Coast (and maybe the states) they also are the sponsors for my school's (U of Maryland) arena as well as other sporting arenas.
Eisner's an intelligent enough guy that I doubt he'd ever pull off this deal if he wants to look good on his way out.
What's truly scary about this is that it's all about money. Not about ideals. The fact that Eisner doesn't even consider it makes me feel at least a bit better. There are no good things that come out of the deal for Disney. If run properly the company could go back to it's glory of the early 90s.
Hopefully the meetings in Philly (I don't know if they happened yet) will be able to send two messages: 1. change of leadership and 2. Disney won't sell itself to a more money hungry company than itself.
Just a P.S. - Eisner might want to think about selling some of the cable channels, ie A&E, Lifetime (i think), etc to Comcast instead. Just keep ABC/ESPN, because they bring in a lot of revenue, especially ESPN.
Eisner's an intelligent enough guy that I doubt he'd ever pull off this deal if he wants to look good on his way out.
What's truly scary about this is that it's all about money. Not about ideals. The fact that Eisner doesn't even consider it makes me feel at least a bit better. There are no good things that come out of the deal for Disney. If run properly the company could go back to it's glory of the early 90s.
Hopefully the meetings in Philly (I don't know if they happened yet) will be able to send two messages: 1. change of leadership and 2. Disney won't sell itself to a more money hungry company than itself.
Just a P.S. - Eisner might want to think about selling some of the cable channels, ie A&E, Lifetime (i think), etc to Comcast instead. Just keep ABC/ESPN, because they bring in a lot of revenue, especially ESPN.
brisem
Well-Known Member
If Comcast was to buy the media potion, ESPN and ABC would have to be part of it. It's where the value is a that deal. But it still won't be that bad because it forces the focus on the Entertainment/Parks.
Also may this is why theAngels and Celebration were sold--to raise money to fight a hostile takeover?
Brian_B
Member
Having just read a book on Walt's major era in the Disney Company (and of course the complete history of the creation of disneyworld, with emphasis on Walt) I think I can honestly say that if this "proposal" were to happen it would probably completely destroy whatever quality standard Walt had in mind. It almost seems as though WDW and DL will fall, but then again I'm an on-off pessimist. 
We can only hope for the best, I guess. I mean what can <I>we</I> do?
-Brian
We can only hope for the best, I guess. I mean what can <I>we</I> do?
-Brian
garyhoov
Trophy Husband
Maybe I'm just a foolish optimist, but this could be a good thing.
Making money and traditional Disney values aren't, in my opinion, in direct oposition.
Over the history of the corporation, Disney has been most successful when they have been doing things the "Disney Way" (high quality, attention to details).
Just because Comcast is an outside entity doesn't mean they won't have the brains to hire the kind of creative people who will do things right. Most of us recognize what Disney used to stand for and should stand for, and most of us don't work for Disney and aren't descended from Walt.
The deal itself wouldn't be a bad as long as incoming management understands what makes Disney click.
Making money and traditional Disney values aren't, in my opinion, in direct oposition.
Over the history of the corporation, Disney has been most successful when they have been doing things the "Disney Way" (high quality, attention to details).
Just because Comcast is an outside entity doesn't mean they won't have the brains to hire the kind of creative people who will do things right. Most of us recognize what Disney used to stand for and should stand for, and most of us don't work for Disney and aren't descended from Walt.
The deal itself wouldn't be a bad as long as incoming management understands what makes Disney click.
Shaman
Well-Known Member
Is it just me...or does everything seem strange?
Sports teams sold, stores closed
Roy and Stan leave
Eisner makes his speeches of increasing share value (or whatever the exact words were)
Animation Studio (FL) is closed
Pixar does not sign new contract
Stock price decrease
Comcast quietly makes bid
Eisner doesn't want to enter discussions
and then COMCAST makes this hostile public move....
something ain't right.....
Sports teams sold, stores closed
Roy and Stan leave
Eisner makes his speeches of increasing share value (or whatever the exact words were)
Animation Studio (FL) is closed
Pixar does not sign new contract
Stock price decrease
Comcast quietly makes bid
Eisner doesn't want to enter discussions
and then COMCAST makes this hostile public move....
something ain't right.....
Shaman
Well-Known Member
Sure there are endless positive outcomes that can arise from a merger or a Comcast takeover....but there are also negative ones...ABC and ESPN aswell as the other channels seems to be what they are looking for....but who knows what they want to do with the rest?
Things seem so chaotic....
prisoner
New Member
Originally posted by Brian_B
I think I can honestly say that if this "proposal" were to happen it would probably completely destroy whatever quality standard Walt had in mind. It almost seems as though WDW and DL will fall, but then again I'm an on-off pessimist.
Let me start by saying that I think Comcast buying Disney would be bad for Disney.
I'm pessimistic about the deal, but I'm not as pessimistic as this.
Keep in mind, for example, that one of the best Disney parks, the #2 tourist destination in the world, is not owned by the Disney corporation. Disney has exactly 0% invested in Tokyo Disneyland and DisneySea. I've never heard one bad thing said about these parks in terms of quality - just the opposite, in fact.
Could the same sort of thing work for the domestic parks? What if Comcast sold the parks, requiring that the Imagineering division (which they would keep) had right of first refusal on any new projects, and with a long-term licensing of all Disney characters?
This is just one example - and there are more.