02.20.2004 12:00 PM
Comcast and Disney in waiting game

Comcast says it won’t sweeten its $50 billion plus offer for the Walt Disney Company. Disney’s shareholders say it must and believe it will. Analysts say Comcast is betting that Disney’s stock will fall below the bid price as time passes and no new bidder emerges.

Comcast is being careful not to offer more than one share of its stock for each share of Disney because any higher offer would leave Comcast with less than 50 percent of the combined company. Its current offer is for 0.78 share of Comcast for each Disney share.

“I think Comcast will have to come up with another offer,’’ which could include a cash component,” Dennis Leibowitz, who heads Act II Partners, a hedge fund that specializes in media, told the New York Times. “But I believe they’ll try to increase the bid with cash because of the potential dilution in issuing shares, which would worry their shareholders. And cash would assure Disney shareholders of an acceptable value regardless of the share price of Comcast stock.”

Back to the top




Comments
Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found




Thursday 10:05 AM
NAB Requests Expedited Review of Spectrum Auction Lawsuit
“Broadcasters assigned to new channels following the auction could be forced to accept reductions in their coverage area and population served, with no practical remedy.” ~NAB

Sue Sillitoe, White Noise PR /   Monday 10:45 AM
100 Free DPA Microphones – How Do You Wear Yours?

 
Featured Articles
Discover TV Technology