Comcast to buy Disney?

Discussion in 'Movies' started by Peter Kim, Feb 11, 2004.

  1. Peter Kim

    Peter Kim Screenwriter

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    Comcast to pay $66B for Disney

    If successful, I'm sure it'll be a catalyst for a price hike in my high speed internet bill...or perhaps not, if ABC/Disney Channel/ESPN/ESPN2 can cut a deal with Comcast thereby passing on savings to me. [​IMG]
     
  2. Edwin Pereyra

    Edwin Pereyra Producer

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    This is a hostile bid. I also don't think that this is a perfect fit for Comcast. It will be interesting to see how Disney responds to this.

    ~Edwin
     
  3. Dave Miller

    Dave Miller Supporting Actor

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    Sounds like a steal. [​IMG] What might this mean for Eisner's future?

    Peace,

    DM
     
  4. Edwin Pereyra

    Edwin Pereyra Producer

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    Word on the Street is that Comcast's offer of 10% premium from yesterday's close of Disney stock is not enough.

    ~Edwin
     
  5. Brian Kidd

    Brian Kidd Screenwriter
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    Wow. I'm shocked and a little dismayed. As much as I loathe Eisner right now, I don't want to see Disney swallowed up by another mega-corporation. You think it's bad now having the creative types reporting to the suits at the top? Think about the creative types having to report to suits who then have to report to suits. Believe me, creativity will be less welcome than it is now. Just look at what Clear Channel has done to the entertainment industry. It's a sad day indeed.
     
  6. Dwayne

    Dwayne Supporting Actor

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    I don't like the idea of Comcast taking over Disney. Doesn't Bill Gates have a substancial amount of shares in Comcast? That would make it even worse.
     
  7. Erik.Ha

    Erik.Ha Supporting Actor

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    Thats not how it would work... Eisner and the gang would be gone, and the Comcast folks would step into their place.

    I dont think Eisner can prevent this. Assuming Comcast really does have that kind of cash, I think they'll win. It's a hostile bid. Comcast will go right to the minority shareholders and gobble up enoungh control to kick Eisner and his group out... With Roy Disney's public hatred of Eisner, I think his shares along with the other 2 on the board who tacitly agree with Roy plus the outstanding shares is enough. We'll see if Disney starts buying up its own stock... Either way, its good for the shareholders.
     
  8. Dave Miller

    Dave Miller Supporting Actor

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    Hypothetically, if this buyout had already happened, the current "Pirates of the Carribean" DVD release might look like this:

    1. It would have only been available at one local retail outlet.

    2. No one working there would have known the release date or known that it was even released after that date.

    3. Once it was released, we would have been charged $49.99 to have it "installed" in our dvd players.

    4. Upon arrival, we would have noticed there was no info on the outside of the packaging and definitely no "instructional" insert w/ the dvd.

    5. After a phone call to the previously state retail outlet, we would be told that the dvd is capable of tons of bonus material that unfortuately are not active right now.

    6. There would be no timeline for activating the bonus material. Their employees are currently beta testing the bonus material and we would have to keep calling back to find out when the bonus material would be activated.

    7. The picture would be in a 4:3 AR, but stretched and squashed to fill a 16x9 screen. Audio on the disc would be analog only with harsh loud pops when changing chapters.

    [​IMG]

    Peace,

    DM
     
  9. Chris

    Chris Lead Actor

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    Boy, this seems like it should be merged with the larger Disney/Pixar thread and renamed to just "Disney - Business" or something.

    Anyway, the thing is not that Comcast made the proposal, that's interesting, but I'm wondering how much it helps Roy/Steve Jobs.. because if Comcast made the overture earlier, as they seem to intone, and Eisner is being portrayed as not considering it, I wonder if there is an attempt to stir stock holders to say "hey, how hard is he looking out for your dollar interest?"

    (I would personally NOT want a Comcast merger, but there you go, a statement from Eisner when first proposed and why refused would have been good [​IMG]
     
  10. Erik.Ha

    Erik.Ha Supporting Actor

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    I think the one thing that could hold this up is the FCC. I dont think they'll take too kindly to a cable company owning the old ABC/Cap Cities group. May force a sale of that division???
     
  11. ToddP

    ToddP Stunt Coordinator

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    I don't think Comcast has the cash to pull off a hostile takeover. There are way too many institutional shares of Disney out there. We're talking many mutual funds with many, many thousands of shares. There are also rumors of Microsoft and Time Warner wanting to go after Disney.
     
  12. Edwin Pereyra

    Edwin Pereyra Producer

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    It is a stock for stock purchase.

    ~Edwin
     
  13. Mike_G

    Mike_G Screenwriter

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    I wonder what this would mean for the "Disney Vault" if it were to go through.

    Mike
     
  14. Erik.Ha

    Erik.Ha Supporting Actor

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    Lion King on PPV all day, every day?
     
  15. ToddP

    ToddP Stunt Coordinator

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    Disney shareholders have to approve a stock for stock purchase, and that is pretty unlikely at these numbers. The above poster was talking about the possiblity of a hostile takeover, which can only be done by buying up shares on the open market. Comcast doesn't have that kind of cash available.
     
  16. Allen Hirsch

    Allen Hirsch Supporting Actor

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    Stock-for-stock means a tax-free exchange for shareholders. It'll take a bigger premium than they've offered to Disney for their shareholders to vote for it, IMO.

    But - this DOES really step up the pressure on Eisner and the board - Jobs/Pixar attacking from one angle, Disney/Gold from another as dissident ex-board members, AND a hostile offer for the entire company from a third angle. Now it's a hostile offer, when a friendly overture was rejected, and not even reported to shareholders, with an explanation why it was inadequate? Who owns that company, anyway?

    Eisner has some 'splainin to do.
     
  17. Glenn Overholt

    Glenn Overholt Producer

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    Aw, guys - come on. This would be a good thing. We'd have a better chance of getting an HTF chat set up.

    Personally I'm all for it. Can you see them hiring Disney back and bringing the company back to the pre-Eisner days?

    Glenn
     
  18. todd s

    todd s Lead Actor

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    Hopefully, if Comcast does win this takeover battle. They will bring Roy Disney back.
     
  19. Allen Hirsch

    Allen Hirsch Supporting Actor

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    What's happened to the stock price of Disney and Comcast since the announcement? That'll tell us the professional arbitrageurs' assessment of the probabiltity of success.
     
  20. ToddP

    ToddP Stunt Coordinator

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    Last I saw, Comcast was down about 8%, and Disney had more than covered the premium Comcast was offering. That should tell you something. There are many that believe Disney has been underbought for a while anyway.
     

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