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Disney Rejects Comcast Takeover Bid
Board Says Company Holdings Undervalued
POSTED: 9:37 p.m. EST February 16, 2004
UPDATED: 10:19 p.m. EST February 16, 2004
LOS ANGELES -- Officials say the board of directors for The Walt Disney Company has rejected a takeover bid by cable television giant Comcast Corporation.
The board noted that the current offer to acquire Disney by swapping shares of both companies would undervalue Disney's holdings.
Comcast made the surprise bid for Disney on Wednesday hours before the entertainment company was set to announce strong first-quarter earnings.
The bid was initially valued at $54 billion, but investors jacked up the price of Disney stock beyond the Comcast offer. Comcast also said it would assume $11.9 billion in debt from Disney, which owns ABC, ESPN, movie studios and theme parks.
In its statement, Disney's board of directors says Comcast's offer amounts to $3.60 less than market value for each share of Disney stock.
Disney and Comcast together had $45 billion in revenues last year. If a deal had been reached to combine the companies, they would have created the world's biggest media company, edging out Time Warner, which had $39.6 billion in revenues last year.
Disney Rejects Comcast Takeover Bid
Board Says Company Holdings Undervalued
POSTED: 9:37 p.m. EST February 16, 2004
UPDATED: 10:19 p.m. EST February 16, 2004
LOS ANGELES -- Officials say the board of directors for The Walt Disney Company has rejected a takeover bid by cable television giant Comcast Corporation.
The board noted that the current offer to acquire Disney by swapping shares of both companies would undervalue Disney's holdings.
Comcast made the surprise bid for Disney on Wednesday hours before the entertainment company was set to announce strong first-quarter earnings.
The bid was initially valued at $54 billion, but investors jacked up the price of Disney stock beyond the Comcast offer. Comcast also said it would assume $11.9 billion in debt from Disney, which owns ABC, ESPN, movie studios and theme parks.
In its statement, Disney's board of directors says Comcast's offer amounts to $3.60 less than market value for each share of Disney stock.
Disney and Comcast together had $45 billion in revenues last year. If a deal had been reached to combine the companies, they would have created the world's biggest media company, edging out Time Warner, which had $39.6 billion in revenues last year.
