Disney's board rejects Comcast takeover bid.

lnsemsf

lnsemsf

Well-Known Member
Original Poster
According to the article, the offer is below the current value of the stock by $3.60 a share or 6.6 billion dollars. It's of course possible Comcast will revise the figure, or another company will step in and try to buy it. Another article i read suggested Disney could try to buy ecostar satalite which would put them in a position to offer more content and head off another possible takeover bid.

More info can be found here...
http://www.cnn.com/2004/US/02/16/disney.comcast.ap/index.html
 
the_rich

the_rich

Well-Known Member
Originally posted by lnsemsf
According to the article, the offer is below the current value of the stock by $3.60 a share or 6.6 billion dollars. It's of course possible Comcast will revise the figure, or another company will step in and try to buy it. Another article i read suggested Disney could try to buy ecostar satalite which would put them in a position to offer more content and head off another possible takeover bid. More info can be found here...
http://www.cnn.com/2004/US/02/16/disney.comcast.ap/index.html
Click to expand...


where did you read this?
 
C

civileng68

Account Suspended
Originally posted by lnsemsf
According to the article, the offer is below the current value of the stock by $3.60 a share or 6.6 billion dollars. It's of course possible Comcast will revise the figure, or another company will step in and try to buy it. Another article i read suggested Disney could try to buy ecostar satalite which would put them in a position to offer more content and head off another possible takeover bid.

More info can be found here...
http://www.cnn.com/2004/US/02/16/disney.comcast.ap/index.html
Click to expand...


Let me just state for the record that my family knows Charlie Ergin (CEO of Echostar) personally and that he will not be selling Echostar (Dish Network). My family had the honor of being invited to Cape Canaveral when Echostar launched their satellite on location 61.5WL, the satellite known as Echostar III.
 
Sir Hiss527

Sir Hiss527

New Member
Ok...I'm not a stock-holder or anything. But why didn't they take it? That's a lot of money. Why is this such a good thing? And why is it such a bad idea for Comcast to take over?
 
BigNorm

BigNorm

Member
Originally posted by Sir Hiss527
Ok...I'm not a stock-holder or anything. But why didn't they take it? That's a lot of money. Why is this such a good thing? And why is it such a bad idea for Comcast to take over?
Click to expand...

Because then it won't be Disney anymore, it would be Comcast-Disney. We could've lost the parks. That's a stretch, but what interest would a cable provider have in theme parks? This is a very good thing. It's late, surely somebody can explain this better than I will.

Now there's only one more mission to accomplish. Who's next? :D
 
the_rich

the_rich

Well-Known Member
it may be alot of money, but it undervalues disney stock by about 6.6 billion dollars. and disney is independent and should always be so, who knows what comcast would really do with disney, i'd rather have eisner till his contract runs out than another company control disney
 
cherrynegra

cherrynegra

Well-Known Member
Looks like Comcast is going to make a second bid that will bring the total to $30 to $31 a share, which is what most analysts agree is Disney's worth for purchasing.

Keep in mind also that although the Disney Board declined the initial offer, they are open to considering a higher bid. Which in my mind, means that they're willing to sell. If Comcast coughs up the cash that the Board thinks Disney is worth, then the deal is sealed. The question then remains what happens to Eisner.

I wouldn't be celebrating right now. This is a quote from the latest update on AP.

"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. "

It's that last sentence that is very telling.
 
kosherkid411

kosherkid411

New Member
Originally posted by cherrynegra
Looks like Comcast is going to make a second bid that will bring the total to $30 to $31 a share, which is what most analysts agree is Disney's worth for purchasing.

Keep in mind also that although the Disney Board declined the initial offer, they are open to considering a higher bid. Which in my mind, means that they're willing to sell. If Comcast coughs up the cash that the Board thinks Disney is worth, then the deal is sealed. The question then remains what happens to Eisner.

I wouldn't be celebrating right now. This is a quote from the latest update on AP.

"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. "

It's that last sentence that is very telling.
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Way to bring everyone's spirits down... J/K

We have actually been talking about this in my business class. I am really going to be looking foward to what my professor has to say tomorrow.
 
cherrynegra

cherrynegra

Well-Known Member
Sorry for the dosage of downer pills.:lol: But just wanted everybody to be prepared for whatever the heck happens by the end of the week. I can't believe the amount of ups and downs Disney has been through in the past month. Amazing!!
 
lnsemsf

lnsemsf

Well-Known Member
Original Poster
Re: Re: Disney's board rejects Comcast takeover bid.

Originally posted by the_rich
where did you read this?
Click to expand...

Took a little searching but found it in a Reuters article posted on Yahoo.

"Defensive options include finding a better suitor or trying to buy a rival programming distributor such as satellite operator EchoStar Communications Corp(NasdaqNM:DISH - news), analysts said. Disney's board also could just stand pat and wait for Comcast to raise its bid or walk away. "

Whole article can be found here...

http://story.news.yahoo.com/news?tm...68&e=3&u=/nm/20040215/bs_nm/media_disney_dc_1
 
Lovecraft

Lovecraft

Member
If *I* were Comcast... and I was able to purchase Disney, what I would do is break it up and sell it off, keeping the cable and other television related portions of it. I would want to keep the characters so I would not really be able to sell off the parks... I'd have to keep em.

I imagine Comcast would have done the same.
 
AndyMagic

AndyMagic

Well-Known Member
Everyone is getting very confused between "Disney's board" and "Disney shareholders." Yes, the Disney board rejected the offer but everyone knew that they would. The whole point of a hostile takeover is that it can go through even if the board rejects the offer. Comcast will just bring the offer to the shareholders and if it is approved, the board's rejection means nothing.
 
N

Nineinchnailsmk

New Member
Had comcast purchased disney, would they keep the disney name or would it be under the name of comcast. I love the way the stock certificate looks now....:animwink:

Anyway, I'm glad it didn't go through. I guess Eisner has somewhat of a clue...especially when they were offering Eisner a Golden Parachute of some $150 million to leave.....

Yes, the merger would have absorbed almost all (if not all) of disney's debt, but hey, Im glad it didnt go through. I am a stock owner, but I NEVER intend to sell ANY of my stock!!!!
 
lnsemsf

lnsemsf

Well-Known Member
Original Poster
Originally posted by AndyMagic
Everyone is getting very confused between "Disney's board" and "Disney shareholders." Yes, the Disney board rejected the offer but everyone knew that they would. The whole point of a hostile takeover is that it can go through even if the board rejects the offer. Comcast will just bring the offer to the shareholders and if it is approved, the board's rejection means nothing.
Click to expand...

True, but their current offer is too low and is worth less than the stock on it's own. The board does have nothing to do with it, but i think that people won't vote for the current deal, However there is plenty of time for more deals to come.
 
AndyP

AndyP

Active Member
The board voted unamimously against Comcast, unfortunately they are open to offers of higher bids, which sucks! Luckily, Comacst may reconsider and Disney may further raise its stakes, as i saw on Bloomberg, since Comcast;s offers, Disney's sahres are up 12% and Comcast down 10% :D

Anyway, if the Disney board did an awful thing and accepted the offer, would the money just go to the shareholders ?
 

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