Comcast withdraws Disney merger proposal

news
Apr 28, 20041 min

Comcast drops its bid, saying Disney's board showed no interest in the deal

Comcast Corp. officially scrapped its fizzled bid to take over The Walt Disney Co., saying Wednesday that Disney’s board showed no interest in the deal.

Philadelphia-based Comcast announced in February its surprise offer, a stock-based package Comcast initially valued at $66 billion. The stock portion of the deal, worth $54 billion at the time of the proposal’s announcement, slid to $48 billion based on yesterday’s closing prices, as Comcast’s share price slipped following its bid.

Some analysts and investors endorsed a merger that would bring together Comcast’s delivery networks with Disney’s content to create what Comcast’s executives envisioned as a dominant media force. Disney’s board, however, swiftly rejected the officer as too low.

“Being disciplined means knowing when it is time to walk away. That time is now,” Comcast Chief Executive Officer (CEO) Brian Roberts said Wednesday in a prepared statement.

After its initial saber rattling in February, Comcast went quiet while Burbank, California-based Disney dealt with internal critics. Investor discontent at the company led to Disney CEO Michael Eisner’s ouster in March as the board’s chairman.