All I can say is hell yea!
http://biz.yahoo.com/bw/040216/165474_1.html
I wonder what will happen next? counter offer by Comcast?
http://biz.yahoo.com/bw/040216/165474_1.html
I wonder what will happen next? counter offer by Comcast?
-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
Disney Board Rejects Comcast Bid
- Thread starter Pat X
- Start date
General Grizz
New Member
:sohappy: :sohappy: :sohappy: :sohappy: :sohappy: :sohappy:
PhotoDave219
Well-Known Member
Took 'em long enough. I dont know anyone who seriously considered this as actually happening.
cherrynegra
Well-Known Member
Well, sorry to say that this could get very, very ugly. I'm sure that when Comcast made their bid, they knew they were undervaluing the stock. Much like they did with AT&T cable. AT&T told them to take a hike and what happens? Comcast raised their bid to a price nobody could refuse and the takeover of AT&T cable by this little cable company went through. Comcast wants in with the big media boys and Disney is their ticket to it. So they believe. I just hope that Disney winds up independent, Eisner leaves, new blood is brought in as CEO and on the Board. Now, if Comcast had done this six months ago, whole different ballgame.
FigmentJedi
Well-Known Member
Victory! Victory! Well, now it's time to boot Eisner.
General Grizz
New Member
. . . and if'n Mr. Gates gets involved. . . :fork:
monorail256
Member
What a relief!
CTXRover
Well-Known Member
Sadly, this is only the beginning 
. I expected this initial rejection considering how undervalued ComCast's offer became after their announcement as their stock fell and Disney stock rose.
I imagine ComCast will make a counter-offer that is better within a few days. However, according to an article I read today, insiders close to ComCast say they aren't willing at this point to make the offer as high as most financial analysts expect for Disney's board to accept. Whether that is true or not...I don't know. I expect ComCast to wait a few days before making another offer to see how Disney's and their own stock does over the next few days. I imagine Disney stock may fall, but I don't know for sure...I'm hoping that it continues to rise
What is potentially good news, however, is that the once expected "bidding war" among several companies doesn't seem to be happening. Apparently the potential companies have analyzed the possibility and decided it isn't really the best thing for them right now. In other words, instead of a bidding war that would have most likely produced an offer that would be way to good to pass up (meaning the sure-fire sale of the Disney company to someone), it is now all up to ComCast to make an offer high enough that Disney feels is good. The question is, how high is ComCast really willing to go? In another article I read somewhere today, apparently their stockholders have already shown hesitance to this potential acquisition, not the all-around excitment and support ComCast officials expected, which may hamper just how high they are willing to go with their bid.
. I expected this initial rejection considering how undervalued ComCast's offer became after their announcement as their stock fell and Disney stock rose. I imagine ComCast will make a counter-offer that is better within a few days. However, according to an article I read today, insiders close to ComCast say they aren't willing at this point to make the offer as high as most financial analysts expect for Disney's board to accept. Whether that is true or not...I don't know. I expect ComCast to wait a few days before making another offer to see how Disney's and their own stock does over the next few days. I imagine Disney stock may fall, but I don't know for sure...I'm hoping that it continues to rise
What is potentially good news, however, is that the once expected "bidding war" among several companies doesn't seem to be happening. Apparently the potential companies have analyzed the possibility and decided it isn't really the best thing for them right now. In other words, instead of a bidding war that would have most likely produced an offer that would be way to good to pass up (meaning the sure-fire sale of the Disney company to someone), it is now all up to ComCast to make an offer high enough that Disney feels is good. The question is, how high is ComCast really willing to go? In another article I read somewhere today, apparently their stockholders have already shown hesitance to this potential acquisition, not the all-around excitment and support ComCast officials expected, which may hamper just how high they are willing to go with their bid.
cherrynegra
Well-Known Member
It was hard to tell if the Disney stock was rising because of the earnings report or because of the bid by Comcast. It looked like it was the bid driving the stock up. But the stock has fallen back a little. It will be interesting to see how the stock fares tomorrow.
CTXRover
Well-Known Member
The drastic rise can most be attributed to the bid...Stockholders expected they could get something better out of ComCast when they heard the bid announcement. However, how far the stock will fall back may be affected by the excellent earnings report Disney announced around the same time...which may keep Disney stock near its "high" right now if Wall Street is convinced enough that Disney is in fact on the right track (apparently, most analysts at the earnings report meeting were impressed with Disney's growth and direction...which is good news)...we'll see tomorrow.
PhotoDave219
Well-Known Member
I dont. While yes, its undervalued but i dont forsee an outright takeover of the mouse.
Whats realistic is a sale of ABC/ESPN & miramax and a licensing/distribution deal of existing film/cable properties. Thats a win-win deal.
Comcast really doesnt want to deal with Disney's debt and wouldnt have the foggiest idea how to run Disney's core business of Theme Parks, Animation and Movies. (Of course, We're not sure Eisner does either)
I think this feignt by Comcast is sort of in Cahoots with Roy to oust Eisner while planting the seed of comming to some sort of a deal with the Mouse on what they really want.
Whats realistic is a sale of ABC/ESPN & miramax and a licensing/distribution deal of existing film/cable properties. Thats a win-win deal.
Comcast really doesnt want to deal with Disney's debt and wouldnt have the foggiest idea how to run Disney's core business of Theme Parks, Animation and Movies. (Of course, We're not sure Eisner does either)
I think this feignt by Comcast is sort of in Cahoots with Roy to oust Eisner while planting the seed of comming to some sort of a deal with the Mouse on what they really want.
cherrynegra
Well-Known Member
I think that's the funniest rumor yet I've heard through all this. If Microsoft gets involved, I expect huge security problems like their software. Well, at least we'll be able to sneak into the parks through some back door they forgot about. Like their software.:lol:
cherrynegra
Well-Known Member
Ahhh....the story gets more interesting. Here's a quote from a just posted Associated Press story.
"The board of directors of The Walt Disney Company on Monday unanimously rejected a takeover bid from cable television giant Comcast Corp. as too low, but said it would consider a higher offer.
The board in a statement expressed support for current chairman and chief executive Michael Eisner and said the company's current structure and strategy are sufficient to maximize shareholder value. But it left open the possibility it would sell for a higher price. "
Like I said folks. So far it's following the same blueprint of their takeover of AT&T cable. Wonder if they'll cough up the money.
"The board of directors of The Walt Disney Company on Monday unanimously rejected a takeover bid from cable television giant Comcast Corp. as too low, but said it would consider a higher offer.
The board in a statement expressed support for current chairman and chief executive Michael Eisner and said the company's current structure and strategy are sufficient to maximize shareholder value. But it left open the possibility it would sell for a higher price. "
Like I said folks. So far it's following the same blueprint of their takeover of AT&T cable. Wonder if they'll cough up the money.
HA! Here is Comcast's response....fair and generous...if they are serious, they are smoking something! As CTX said, they may and will extend another offer...however, two things, one: I've read that Comcast will only increase their bid 10-15% and that is still not enough to reach most institutional investors' goal of $30-$32 a share.
Reuters
Comcast calls is Disney offer generous, compelling
Monday February 16, 9:45 pm ET
NEW YORK, Feb 16 (Reuters) - Comcast Corp. said on Monday its unsolicited offer to acquire Walt Disney Co. (NYSEIS - News) marked a generous and compelling proposal despite the media company's rejection of the bid.
The board of Disney, which has an entertainment empire that includes Mickey Mouse, ABC television and the ESPN cable sports network, unanimously rejected Comcast's offer and said it had full confidence in the company's prospects under Chairman Executive Officer Michael Eisner.
Comcast (NasdaqNM:CMCSA - News) said its offer "reflects a full and generous valuation based upon Disney's prospects and performance over a long period of time."
Reuters
Comcast calls is Disney offer generous, compelling
Monday February 16, 9:45 pm ET
NEW YORK, Feb 16 (Reuters) - Comcast Corp. said on Monday its unsolicited offer to acquire Walt Disney Co. (NYSE
IS - News) marked a generous and compelling proposal despite the media company's rejection of the bid.The board of Disney, which has an entertainment empire that includes Mickey Mouse, ABC television and the ESPN cable sports network, unanimously rejected Comcast's offer and said it had full confidence in the company's prospects under Chairman Executive Officer Michael Eisner.
Comcast (NasdaqNM:CMCSA - News) said its offer "reflects a full and generous valuation based upon Disney's prospects and performance over a long period of time."
There is already word of a counter offer:
In its Tuesday online edition, the entertainment industry publication Hollywood Reporter, citing Wall Street analysts covering the two companies, predicted Comcast would present a counteroffer with a different structure and perhaps a cash component.
The Reporter said the analysts it interviewed believed that Comcast would increase its offer to $30 to $31 per share, up from the approximate $26.50 per share offered Wednesday. The publication quoted "market watchers" as saying Disney shareholders may demand a bid in the $34-$35 range
Disney stock closed at $26.92 Friday and Comcast shares closed
In its Tuesday online edition, the entertainment industry publication Hollywood Reporter, citing Wall Street analysts covering the two companies, predicted Comcast would present a counteroffer with a different structure and perhaps a cash component.
The Reporter said the analysts it interviewed believed that Comcast would increase its offer to $30 to $31 per share, up from the approximate $26.50 per share offered Wednesday. The publication quoted "market watchers" as saying Disney shareholders may demand a bid in the $34-$35 range
Disney stock closed at $26.92 Friday and Comcast shares closed
The_CEO
Well-Known Member
LOS ANGELES -- The board of directors for The Walt Disney Company on Monday rejected a takeover bid by cable television giant Comcast Corp., officials said.
The board noted that the current offer to acquire Disney by swapping shares of both companies would undervalue Disney's holdings.
"We are committed to creating shareholder value now and in the future and will carefully consider any legitimate proposal that would accomplish that objective," the Disney board said in a statement released Monday.
"In any proposal by Comcast, or any other company, the board will consider and assess the value to be received in exchange for the shares of Disney, and also the appropriate premium to reflect the full value of Disney."
Comcast made the surprise bid for Disney on Wednesday hours before the entertainment company was set to announce strong first quarter earnings.
The bid was initially valued at $54 billion, but investors jacked up the price of Disney stock beyond the Comcast offer. Comcast also said it would assume $11.9 billion in debt from Disney, which owns ABC, ESPN, movie studios and theme parks.
In its statement Monday, Disney's board of directors said Comcast's offer amounts to $3.60 less than market value for each share of Disney stock.
"The deficit of value in Comcast's proposal has existed from the very first day after Comcast announced it, when the deficit was $3.24 per Disney share or a total of $6.6 billion," the statement read.
Disney and Comcast together had $45 billion in revenues last year. If a deal had been reached to combine the companies, they would have created the world's biggest media company, edging out Time Warner, which had $39.6 billion in revenues last year.
The board noted that the current offer to acquire Disney by swapping shares of both companies would undervalue Disney's holdings.
"We are committed to creating shareholder value now and in the future and will carefully consider any legitimate proposal that would accomplish that objective," the Disney board said in a statement released Monday.
"In any proposal by Comcast, or any other company, the board will consider and assess the value to be received in exchange for the shares of Disney, and also the appropriate premium to reflect the full value of Disney."
Comcast made the surprise bid for Disney on Wednesday hours before the entertainment company was set to announce strong first quarter earnings.
The bid was initially valued at $54 billion, but investors jacked up the price of Disney stock beyond the Comcast offer. Comcast also said it would assume $11.9 billion in debt from Disney, which owns ABC, ESPN, movie studios and theme parks.
In its statement Monday, Disney's board of directors said Comcast's offer amounts to $3.60 less than market value for each share of Disney stock.
"The deficit of value in Comcast's proposal has existed from the very first day after Comcast announced it, when the deficit was $3.24 per Disney share or a total of $6.6 billion," the statement read.
Disney and Comcast together had $45 billion in revenues last year. If a deal had been reached to combine the companies, they would have created the world's biggest media company, edging out Time Warner, which had $39.6 billion in revenues last year.
Shaman
Well-Known Member
I think at this point its better for Disney to play offense rather than defense...infact I wouldn't be surprised if we hear of some big news related to Disney before Comcast makes another bid....
It would be nice if Disney manages to put a stop to Comcast early...but lets see what happens...
It would be nice if Disney manages to put a stop to Comcast early...but lets see what happens...