The FCC promises close scrutiny, but Comcast-Disney will simply crush anything standing in its way.Comcast, the U.S. largest cable operator, launched an unsolicited bid to buy Disney, known for its film studio and theme parks, for more than $54 billion in stock, an offer that was rebuffed by the Disney's chief executive Michael Eisner.
Comcast said it would issue 0.78 share of Comcast Class A shares for each Disney share. Disney shareholders would receive a premium of over $5 billion, based on Tuesday's closing prices, the cable company said.
At least one analyst wasn't excited about Comcast's offer. George Smith, analyst with Davenport & Co. said the premium to Disney shareholders " was not sufficient."
"Offering a 9 percent premium is not enough," said Smith. "It will take a good deal more than that for such a large company like Disney. Some think that Disney's stock is undervalued as it is even without Comcast's bid. A premium closer to 30 percent could really heat up the talks."
Smith does own shares of Disney and his firm has an investment banking relationship with the company.
No it doesntOriginally posted by <b>fl_flash</b>!
I live in Orlando. I dunno. It's not the same. "C'mon kids. Let's go to Comcast World!" It just doesn't have the same ring to it.
great postOriginally posted by <b>SPIN DOCTOR</b>!
This bid is merely an opening tender offer to initiate the process of the LBO. A few quick flaws with the bid:
* Underwhelming premium to current value - a 10% premium for DISNEY? This is just getting Started.
* An All Stock bid of 54B, Comcast stock volatility may not support this. Other competative offers will change this.
* M Eisner not consulted or involved in the process yet, this was a strategic oversight, and stupid IMO.
*Ray you are correct, look for other offers (my $ is on B Diller). The bad news is that Disney will never again be under its own control, the good news is that the shareholders will be recieving a much higher premium on their shares.
just my .02
$54M in stock is incredibly cheap. I bet we could raise that kind of money to buy a company like Disney in very little time!Originally posted by <b>TomBoerwinkle#1</b>!
The package is 54M in stock purchase and assumption of 12M in debt.