Gates rules out Disney bid
Dominic Timms
Thursday March 4, 2004
Microsoft chairman Bill Gates has ruled out bidding for embattled entertainment giant Walt Disney as dissident shareholders said they would press on with
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their attempts to oust Michael Eisner, who last night lost his dual role as chief executive and chairman.
In an interview on US television Mr Gates said he was steering clear of any potential bid for Walt Disney.
"We're not going to be involved in it, because we're very focused on software," he said in a late night interview on Wednesday.
Speculation had been circulating in financial circles that Microsoft might either mount an outright bid for Disney or become involved as an acquisition partner. But Mr Gates said the company was "not part of the bid or anything".
Microsoft's decision to stay out of the bidding came as US cable giant Comcast stepped up its attempts to persuade Disney's independent directors to reconsider its $60bn bid for the entertainment giant, after a shareholder rebellion forced Disney to select a new chairman.
The Disney board, which rejected Comcast's initial offer last month, hinted it might pursue talks, but reiterated its view that the Comcast deal undervalued the company. "With respect to the statement made by Comcast, the board of directors stated that it does not believe today's reiteration by Comcast of its previous proposal, which we rejected as inadequate, would lead to a transaction beneficial to Disney shareholders. The board will carefully review and analyse any reasonable proposal," it said.
Walt Disney last night said it would split the role of chairman and chief executive after an unprecedented 43% of shareholders withheld their support for Mr Eisner's re-election at a rowdy annual meeting.
The company said Mr Eisner would remain chief executive, while presiding director George Mitchell, best known in the UK as the man who helped broker the Good Friday Agreement in Northern Ireland, would step up to fill the chairman's role.
Mr Mitchell's appointment is unlikely to appease critics of the company - he was also a target for shareholder activists after 20% voted against his re-election to the Disney board.
Despite separating Mr Eisner's roles of chairman and chief executive, the efforts of disgruntled shareholders to oust Mr Mitchell and Mr Eisner from the company completely look set to continue.
The shareholders, led by Roy Disney, the nephew of Walt Disney, and former board member Stanley Gold, said they would step up their campaign for a new management team.
"The resounding 'no confidence' vote cast by shareholders/owners of The Walt Disney Company has sent a clear and undeniable message that dramatic change is needed now and that Michael Eisner must go," said Mr Disney and Mr Gold said after last night's meeting.
"It has been suggested that Mr Eisner's withhold vote is really a referendum on the separation of the jobs of chairman and CEO," they stated. "While we agree that this is a necessary action, and the job should be split, we don't believe Mr. Eisner should have either job."
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