Just want to clear up some basic investment banking issues that surround this whole bid from Comcast.
First off, whether or not this deal goes through is not simply the decision of Mr. Eisner. While Eisner will be a part of the board decision to accept a bid, the board itself is ultimately in charge. Given the latest in fighting, some board members may be looking for a quick way out with a nice exit deal.
Ultimately, the board has its primary duty to serve the interest of the shareholders. Therefore, they will be looking at how the premium offered on Disney stock actually fits the value of the company. Disney, unlike Comcast, has been trading way below its potential value for a long time. Therefore, the Comcast offering may be determined to be too small.
Any acquisition would have to be approved the regulating bodies. There are some issues that will have to be addressed; primarily, how will it look to have a major cable provider acquiring the parent company of a massive network (ABC).
Any bid like this will prompt other potential companies to examine Disney as an acquisition target. GE, the parent company of NBC, is rumored to be looking at the deal. GE would also face extreme regulatory issues and would have to sell the ABC side of the business.
The theme parks, which provide 1/3 of Disney's annual income, will almost assuredly not be sold off upon acquisition. The theme parks are a pure Disney product. For a third party who is not in possesion of the media holdings to maintain the parks, an annual licensing fee would have to be paid indefinitely. This, in itself, would be prohibitively expensive.
First off, whether or not this deal goes through is not simply the decision of Mr. Eisner. While Eisner will be a part of the board decision to accept a bid, the board itself is ultimately in charge. Given the latest in fighting, some board members may be looking for a quick way out with a nice exit deal.
Ultimately, the board has its primary duty to serve the interest of the shareholders. Therefore, they will be looking at how the premium offered on Disney stock actually fits the value of the company. Disney, unlike Comcast, has been trading way below its potential value for a long time. Therefore, the Comcast offering may be determined to be too small.
Any acquisition would have to be approved the regulating bodies. There are some issues that will have to be addressed; primarily, how will it look to have a major cable provider acquiring the parent company of a massive network (ABC).
Any bid like this will prompt other potential companies to examine Disney as an acquisition target. GE, the parent company of NBC, is rumored to be looking at the deal. GE would also face extreme regulatory issues and would have to sell the ABC side of the business.
The theme parks, which provide 1/3 of Disney's annual income, will almost assuredly not be sold off upon acquisition. The theme parks are a pure Disney product. For a third party who is not in possesion of the media holdings to maintain the parks, an annual licensing fee would have to be paid indefinitely. This, in itself, would be prohibitively expensive.