Comcast makes offer to merge with Disney

[DisDuck]

Since The Baron has chimed in yet on this discussion I will. Pirate I am on your side in this issue like most of the issues over the last 2-3 years 'we' have been chatting. I remember many conversations between Baron, you, I, Voice, and others discussing the merits of staying Independent or 'selling' out. The majority of the responses was that 'selling' out was BAD except maybe for ousting Eisner. Just use ComCast's own words in their letter, "Distribution & Content". Very little mention of Theme Parks. They are a broadcase company first and formost. They want Touchstone, Miramax, etc. I have a son who worked for ATT Broadband and now works for ComCast. His position while not shakey has changed. Cuts have been made and raises postponed. This is in the Boston Area. Where HS students could be used an interns on Public Access broadcasts of town meetings that has been eliminated puting a heavy workload on the town coordinators.

'You' are trading one large company with at least a history in the field to an even larger company with no history except in supplying broadcast signals. Imagine someone from Theme Parks saying lets build Fire Mountain.. Comcast would ask why should we spend the money it doesn't go over the airwaves or cable. This sounds like Eisner the way some of you describe him. So are we in the 'lesser' evil mode. I for one rather have the one I know then the unknown.

If Comcast takes over the Theme Parks will become 6-flags.

The Duck has spoken.

 

[Ducky4Disney]

I dunno about any of this. It just makes me nervous - I get a bad vibe about this. I hope that whatever the outcme is, that good things happen to Disney. I am so glad that there are such knowledgable people here at the DIS so I can learn about what is going on with Disney and stay informed.

I am not a big Comcast fan - for one thing, they don't have the Travel Channel, which means I couldn't watch any of the specials on Disney World!!

D4D

 

[Peter Pirate]

Good points Duck. A (virtual) one for one swap to company without the tradition or knowledge in the core Disney arenas...I can't see how this could work out.

 

[raidermatt]

The Duck pulls a Jordan and comes out of retirement. I thought I heard a trumpet fanfare....

Again, not necessarily "good".

More of a "what did you expect"?

 

[Jestocost]

Originally posted by WDWHound
Note there is no mention of the parks in Comcast's letter.

Originally posted by normr
Here is the letter from the President/CEO

Together, we would unite the country's premier cable provider with Disney's leading filmed entertainment, media networks and theme park properties

The letter doesn't mention the parks except in the part where it mentions the parks.

 

[MickMan]

The Mouse Without Mike?
http://money.cnn.com/2004/02/11/commentary/bidask/bidask/index.htm

More Cheese Please
http://money.cnn.com/2004/02/11/commentary/breakingviews/bviews_comcast/index.htm

Comcast Outlines Plans to Revitalize Disney
http://money.cnn.com/services/tickerheadlines/for5/200402111131DOWJONESDJONLINE000768_FORTUNE5.htm

 

[hopemax]

one for one swap to company without the tradition or knowledge in the core Disney arenas

Company yes, but executive VP andComcast Cable's President, Steve Burke, is a former Disney executive (1986-1998). He was one of the people that founded the Disney Stores, President of Euro Disney from 1992-1996, and he was in charge of ABC before he took the Comcast job.

I don't know what his reputation is, but it's not like Comcast is entirely full of people who don't know what Disney is all about. Whether this whole thing is good or bad, I have no clue.

 

[DisDuck]

raidermatt.. what did I expect what?

The issue of Disney better off independent versus owned by another company has been discussed for 'years' on this board. The consesus in the past if my memory hasn't failed is Independence is best.

Yes, the parks are mentioned but more emphasis is given to Distribution and Content.

 

[crusader]

Comcast's letter is nothing but hot air.

They fail to address how they will prevent what now plagues cable behind the door the FCC just opened.

Read Murdoch's comments regarding consumer choice and programming of the future -

http://judiciary.senate.gov/~judiciary/testimony.cfm?id=813&wit_id=2357

explains why Comcast needs to posture bigtime.

We'll be the one's who ultimately decide what avenue we choose in this industry and cable is vulnerable as a mere distributor.

 

[doombuggy]

Comcast commits highway robbery. I hate them, but am stuck with their lousy cable (I live in an apt. bldg). I am also a season ticket holder for the Flyers.

I think this would be a disaster, but I just can see the FCC allowing this to go thru.

 

[DemoBri1]

Originally posted by floridafam
I see it like this.

It's a good thing.
Let Comcast handle all of the media aspects of Disney.

Roy and Stan can have the theme park business.

Eisner is out of a job.

I don't see any bad points here.

I'll tell you what. If Comcast's management and customer service regarding our local Cable TV is any indication, you will wish Eisner was still in control inside of six months.

I'm not saying a merger is going to be a bad thing, but it has to be a merger where Disney retains control, and it has to be partnered with a company that is indeed interested in helping to advance the partnership.

IMHO Comcast is not that company.

 

[DisneyKidds]

Matt, you'd have to expect the biggest news to hit The Disney Company since 1984 to bring just about everyone out of retirement .

Crusader......I agree that letter from Comcast to Eisner is nothing but saying the PC things you have to while the raiders are at the gate.

Duck, Pirate, et al. I agree an independent Disney is better than one that is part of Comcast. However, is the independant Disney we all long for the Cap Cities/Go.com/Fox Family/ESPN conglomerate the company has morphed into? No, I think we long for an independant Disney of old. Here's to hoping that some such thing could emerge from the fallout of anything that becomes of these developments.

Should Disney be acquired, and should Comcast decide to keep the Theme Parks business in the stable, well that could be very bad. Then again, one wold hope that they'd realize you can't run theme parks like a cable business. Eisner tried that and that is the sole reason Disney is the takeover target they have become.

 

[Certifiable WDW Nut]

Have Roy and Stan said anything today? I think their comments and the timing of them may give us a clue as to what will happen to the animation studio and the parks. I don't think Comcast wants either and we just have to hope they are spun off to people who respect the heritage and want to bring it back.

 

[Buzzrules]

The thing that bugs me is that back when Comcast was purchasing the ATT business, they specifically said that they wanted to be known as a cable tv company. They were all about the delivery, not creation, aspect of the entertainment industry. In fact, they didn't even want to promote the telephone service that ATT offered until they realized how well it had been doing in the Boston area.
While I understand that maybe they want to diversify their business lines, and that they're a smart company, mistakes will definitely be made. Let's just hope that they learn quickly from those mistakes (if the transaction happens).

 

[WDSearcher]

Originally posted by tfc3rid
This is the end. I'm selling off my stock...

Well then sell it now, because it's trading higher than it has since June 2001!

 

[WDSearcher]

Originally posted by wtg2000
If Comcast does win, I can picture the new Fast Pass system. You get a ticket for Tuesday between 9 and noon or Wednesday between 1 and 5. Then you wait around and hope that the ride operator shows up.

OK ... that's the one funny post that's come out of all of this! Well done.

 

[crusader]

Originally posted by DemoBri1
I'll tell you what. If Comcast's management and customer service regarding our local Cable TV is any indication, you will wish Eisner was still in control inside of six months.

I'm not saying a merger is going to be a bad thing, but it has to be a merger where Disney retains control, and it has to be partnered with a company that is indeed interested in helping to advance the partnership.

IMHO Comcast is not that company.

Well Said! I couldn't agree more.

I really can't emphasize enough what's going on with News Corp and its' impact on the cable industry.

It is very difficult given all the media control out there to find great information on where we are heading. The mainstream press seems pretty tight-lipped on this issue.

Here's one source which outlines this environment in a clear concise format which you may find of particular interest: I call your attention to pages 4 through 8.


http://www.consumersunion.org/pdf/0506-cable.pdf

It's interesting that the judiciary committee is holding a hearing today titled " Cable Competition – Increasing Price; Increasing Value? "

http://judiciary.senate.gov/~judiciary/hearing.cfm?id=1041

 

[KNWVIKING]

With the parks being the cash cows that they are, I can't see why Comcast would unload them. With 22 million subscribers, Comcast already has a very steady cash flow, they really wouldn't have the need to siphone profits from the parks to pump up their existing business.

Comcast does allow the '6ers and Flyers the opportunity to operate with very little interference, hopefully they would do the same with the parks.

Maybe this would be the perfect time for ME to unload ABC,Family & ESPN. My feeling is that Comcast wants it's own tv network similar to Murdock & Viacom.

 

[noblemickey]

This truly saddens me. It won't be the same going to WDW owned by Comcast or some other outfit. I don't think the offer is yet rich enough for the Directors and/or shareholders to support as of yet. Another bidder will probably come in which will up the price which may lead to Comcast offering more or the new bidder getting the Walt Disney Company. This was probably inevitable but it still saddens me. Business is business but the Mouse had a special place in my heart.

 

[tfc3rid]

You are right... It is scary and very very sad to think that the end is coming for the Walt Disney Company...