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Discussion Starter · #1 ·
Launched a hostile takeover bid. For all of you Disney Shareholders, my advice, dont sell. Word is that a rival bid might come in.
 

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"Meow."
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If they complete the acquisition will I finally get NBATV...damnit. It's nice to know the money I wasted on the package is being put to good use in purchasing devil.inc.
 

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Holy Monopoly, Batman. That would be one monster of a company.

Forbes reports on unsolicited Comcast bid for Disney

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.
The FCC promises close scrutiny, but Comcast-Disney will simply crush anything standing in its way.

The package is 54M in stock purchase and assumption of 12M in debt.

CNN Reports

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.
 

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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.
 

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Discussion Starter · #5 ·
Originally 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.
No it doesnt

Im 30 years old, will be 31 next month and when my girlfriend and I want to get some R and R, particularly when we lived in the US, Disney World was our main place to go. It takes some of the luster out of it with Comcast buying it. Thats not to say Comcast is a bad company, but its not Disney. Well, I own both stocks so itll be interesting to see how it plays out. Disney is way up and Comcast is way down today
 

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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
 

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Discussion Starter · #7 ·
Originally 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
great post
thats why i said if you own disney stock, dont sell it yet. this is going to become a bidding war. Similar to RJR in the 80s with KKR winning it
Apparently Eisner wouldnt even chat with the Comcast board, thats why the hostile bid was made.
Barry Diller or Sumner Redstone will certainly get involved. Possibly Rupert Murdock or even John Malone. All of these guys would be interested
My guess is that Disney will do an LBO on themselves, and try and take the company private before they allow themselves to be bought. but it will be the business story of the last 10 years if it happenend
 

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"Meow."
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To all those with a better understanding of the stock market then I have (basically everyone):

Why the interest in Disney all of the sudden?

Would other media conglomerates enter bidding just to thwart comcast or is there a method to this madness?
 
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