Hey, Guys! Just announced! Check this out!
Comcast Withdraws Its Bid for Disney
Wednesday April 28, 8:37 am ET
NEW YORK (Reuters) - Comcast Corp. (NasdaqNM:CMCSA - News), the largest U.S. cable company, on Wednesday withdrew its unsolicited $48.4 billion bid to buy Walt Disney Co. (NYSE:DIS - News) after the entertainment conglomerate steadfastly refused to open negotiations.
“It has become clear that there is no interest on the part of Disney’s management and board in putting Comcast and Disney together,” Comcast Chief Executive Brian Roberts said in a statement.
The withdrawal came less than three months after Comcast launched its surprise bid and drove Comcast shares higher in premarket trade. Disney shares dipped.
“We have always been disciplined in our approach to acquisitions,” Roberts said. “Being disciplined means knowing when it is time to walk away. That time is now.”
Comcast announced the withdrawal of the bid shortly after reporting a first-quarter profit. Comcast executives were likely to have faced numerous questions about the takeover proposal on a scheduled conference call with investors following the earnings.
The bid had led some analysts and investors to question whether Comcast believed it could sustain a cable-only strategy going forward.
Comcast insisted it the withdrawal was not because it had made a strategic miscalculation, but because it was unwilling to waste more time on an unwilling target or raise its bid.
Shares of Comcast, which had fallen nearly 12 percent since it announced its bid in February, rose as much as 6 percent in pre-market trade.
The withdrawal of the bid comes a day after Disney’s board reiterated support for embattled CEO Michael Eisner, who has faced sharp criticism from high profile shareholders. Eisner lost his chairman title after a contentious annual meeting last month.
The withdrawal frees Comcast, based in Philadelphia, to return to the acquisition trail. The company is expected to take a serious look at Adelphia Communications Corp. (Other OTC:ADELQ.PK - News), the bankrupt cable TV operator which put itself up for sale earlier this month, according to several sources close to the company.
A Disney spokesman could not immediately be reached for comment. The entertainment and media conglomerate has continually said it would not discuss the merger offer with Comcast, which it said severely undervalued the company.
Shares of Comcast rose to $31.75 in premarket trade on the INET electronic brokerage system, up from a close of $29.97 on Nasdaq on Tuesday. Disney shares dipped to $23.75 on INET, down from their close at $24.18 on the New York Stock Exchange (News - Websites) .
This is good news for Disney, but they better step up to the plate and make the most of it and take it for what it is worth. Just because Comcast isn’t interested anymore does not mean that there is not a lot of improvement to be made or they may be in for a bigger and more costly battle with someone who may be a lot more serious than Comcast and ready for the fight. They need to fix their internal problems and get things going on the right track again. :mickey: