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The Media Businesses Entertainment

Comcast Wants To Buy Disney For $66 Billion 573

BenBenBen writes "Comcast have made a surprise $66 billion bid for Disney. The public bid (aimed at swaying shareholders) follows a period of secret negotiation which resulted in Eisner saying no. Comcast has a statement on their website and there is better coverage available here."
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Comcast Wants To Buy Disney For $66 Billion

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  • Hostile takeover? (Score:5, Interesting)

    by jaf ( 121858 ) on Wednesday February 11, 2004 @08:42AM (#8247884) Journal
    Curious.. is this what's called a hostile takeover?
    • Re:Hostile takeover? (Score:5, Informative)

      by B00yah ( 213676 ) on Wednesday February 11, 2004 @08:44AM (#8247900) Homepage
      No, a hostile takeover is where you buy a controlling percentage of the company's stock, to overthrow their board.

      This is just a business tactic to try and sway the devil that is Eisner..
      • Re:Hostile takeover? (Score:4, Informative)

        by eln ( 21727 ) on Wednesday February 11, 2004 @08:46AM (#8247926)
        To be more precise, it's generally when you offer all of the minority shareholders in a company a premium price for their stock (often in the neighborhood of 40 to 50% above market value) in an attempt to gain controlling interest.

        This is generally only possible with companies where the majority of the stock is held by a large number of minority shareholders. It would not be possible with, say, Microsoft, where Bill Gates still owns over 50% of the stock.

        Usually a hostile takeover is done by so-called corporate raiders, whose plans are to dismantle the company and sell the pieces for more than the entire company would be worth if sold as one piece.
        • Comment removed (Score:4, Informative)

          by account_deleted ( 4530225 ) on Wednesday February 11, 2004 @08:56AM (#8248017)
          Comment removed based on user account deletion
          • Re:Hostile takeover? (Score:3, Informative)

            by eln ( 21727 )
            Obviously very old information.

            Maybe I should have said more than 50% of the stock is in "safe hands"...in the hands of people unlikely to go with a takeover bid.
          • by O ( 90420 ) on Wednesday February 11, 2004 @09:14AM (#8248178)
            Steve Jobs owns MSFT? I doubt that. I think you meant Steve Balmer, mate.

            See for yourself. [yahoo.com]
        • Re:Hostile takeover? (Score:5, Informative)

          by Uninvited Guest ( 237316 ) on Wednesday February 11, 2004 @09:06AM (#8248111)
          Allow me to refine this fine explanation. A majority interest is when a single shareholder or group of shareholders owns more than 50% of all stock, and so can always override the votes of all other shareholders combined. A controlling interest is owning just enough stock to outvote the next largest voting block.

          The buyer (Comcast) would like to buy a controlling interest in Disney, so they can appoint their own board members and chairman. So, if Eisner and his allies own 30% of all Disney stock, Comcast would need to buy just 31% to be able to outvote Eisner and friends every time. That gives Comcast the power to elect a new board of directors, who selects a new chairman of the board to replace Eisner. The new chairman serves Comcast, lest he also be replaced by Comcast.

          I think it's only a "hostile" takeover when the management of the company to be bought opposes the sale. The company shareholders may be quite favorable to the buyout.
        • Re:Hostile takeover? (Score:5, Informative)

          by His name cannot be s ( 16831 ) on Wednesday February 11, 2004 @09:12AM (#8248157) Journal
          Point of information Mr Speaker.

          Bill Gates does not own more than 50% of the Stock of Microsoft.

          Bill has 1,209,713,228 shares of Microsoft Stock. Microsoft has a total of 10,700,000,000 shares outstanding, worth a total of $289,649,000,000, which is Microsoft's market capitalization. (That's $289.65 Billion.)

          Bill has about 11.3% of the Stock in Microsoft.

          Heck, Bill has NEVER owned more than 50%. He and Paul Allen each had 50% to start with, until they went IPO.
        • Re:Hostile takeover? (Score:4, Interesting)

          by PunkPig ( 738544 ) on Wednesday February 11, 2004 @09:13AM (#8248163)
          So Comcast buys Disney, keeps all of Disney's TV properties (ABC, ESPN, etc), and sells Pure Disney (Mickey, theme parks, etc) to Pixar+Roy Disney.
      • Re:Hostile takeover? (Score:4, Informative)

        by leerpm ( 570963 ) on Wednesday February 11, 2004 @11:47AM (#8249778)
        No, this is a hostile bid. See here for more details [globeinvestor.com].

        A hostile action, is one taken when you don't have the agreement of the target company's management. Eisner, disagreed, and Comcast is now attempting to do an end run around him straight to the shareholders. Personally, I hope Comcast succeeds, because Disney is in desperate need of a change in management.
    • by Pamplemousse ( 751021 ) on Wednesday February 11, 2004 @08:46AM (#8247922)
      This is what we call agressive negotiations!
    • You obviously never watched the highly educational "Secret of My Success", starring the ever informative Michael J. Fox.
    • Re:Hostile takeover? (Score:5, Informative)

      by nelsonal ( 549144 ) on Wednesday February 11, 2004 @11:07AM (#8249384) Journal
      It's unsolicited, which is the first step to a hostile takeover. In a corporation the stockholders have a group known as the Board of Directors who represent them legally. This is doen to save time educating all the stockholders from complex issues, and let a few people specialize in the company. The board makes decisions for the stockholders on upper management, offers to buy or sell major assets, stock issuance and repurchase policies, compenstion plans, and other big issues (some charters require a vote of all the shareholders for these items). Sometimes board members offer other skills or advantages, like a financial/management expert on a startup or Cheney at Haliburton (brought goodwill of many oil rich middle eastern countries).
      In the real world the board is ususally quite close to current management, most CEOs are also chairman of the board, and there are usually several former executives on the board. Disney has one of the more management friendly boards (Eisner was able to boot the founder's son off the board). Apple also fits in this boat.
      When a company wants to buy another one, they usually go speak with current managment who is sometimes receptive, and negotiations begin, or isn't and an unsolicited offer is made, or the acquirer seeks more receptive management. A hostile takeover requres the rejection of the unsolicited offer, then a proxy fight. Proxy statements are the documents that are sent in preparation for a board meeting since most votes occur by proxy. This is the way new boards are elected. Incidentally, offers are usually at a large premium to the current price, and are one of the few things that almost always result in insider trading convictions if you get caught.
      Shareholders get to vote, and management offers a slate of directors who do not want to sell and the acquirer offers a slate of directors who does. Usually the potential acquirer has already pruchased 5% of the company (which votes for the merger), that is the limit at which your ownership must be disclosed.
      The reason the fight occurs is that in a takeover the current management is sacked and replaced with a management team from the new company. Oracle is currently trying a hostile takeover of Peoplesoft. Although that one has largely been fought in the DOJ halls rather than in a proxy battle (proxy fights are what HP went through prior to the Compaq acquisition).
      • Re:Hostile takeover? (Score:4, Informative)

        by odin53 ( 207172 ) on Wednesday February 11, 2004 @05:20PM (#8253780)
        A couple of points:

        In a corporation the stockholders have a group known as the Board of Directors who represent them legally. This is doen to save time educating all the stockholders from complex issues, and let a few people specialize in the company. The board makes decisions for the stockholders on upper management, offers to buy or sell major assets, stock issuance and repurchase policies, compenstion plans, and other big issues (some charters require a vote of all the shareholders for these items).

        This isn't an entirely correct characterization of a board of directors. The board represents the corporation, NOT the shareholders; the board has a fiduciary duty to the shareholders. This is an important distinction. The board is not there to educate all the shareholders, nor is it there to make decisions "for" stockholders. The board has the sole responsibility to make decisions about the ordinary business of the company. This is why the board (and its agents) are generally protected by the "business judgment rule" in most jurisdictions -- shareholders really have no say about the regular business of a company. (Incidentally, this is also why most shareholder proposals (that have to do with company business and that are not in the form of recommendations) are excluded from proxy materials.)

        The shareholders have only a few responsibilities, the most important being to decide who is on the board, to consent to amendments to the charter, and to consent to or make decisions as to major corporate changes, including the ones you mention as well as dissolution.

        ... hostile takeover requres the rejection of the unsolicited offer, then a proxy fight.

        Hostile takeovers don't only involve proxy fights; much of the time, hostile takeovers are the result of hostile tender offers, which, if successful, don't require proxy fights. The Oracle takeover attempt of Peoplesoft, for example, started out as a tender offer, but they were (are) unsuccessful (so far). Thus, they're trying to do a proxy fight. This is in addition to the antitrust problems.

        Incidentally, offers are usually at a large premium to the current price, and are one of the few things that almost always result in insider trading convictions if you get caught.

        What do you mean by this?

  • by Space cowboy ( 13680 ) on Wednesday February 11, 2004 @08:43AM (#8247885) Journal
    ... I remember when working for a web consultancy quoting for a job, our sales director actually said "We're no mickey-mouse company, we've established ...(blah blah blah)". He never did realise (until told, afterwards) why the atmosphere suddenly froze :-)

    We didn't get the job ...

    Simon
  • by Travoltus ( 110240 ) on Wednesday February 11, 2004 @08:43AM (#8247896) Journal
    Man may not make it to the Moon again any time soon, but if this merger happens, your cable rates will!
    • Comcast will just blame ESPN again! (And hope you don't remember who owns ESPN)
    • by yroJJory ( 559141 ) <meNO@SPAMjory.org> on Wednesday February 11, 2004 @12:12PM (#8250013) Homepage
      They're not already through the roof? As soon as Comcast took over ATTBI, our rates went up about 45%.

      Then, all the analysts said, "Comcast may irritate some of their customers into using rival broadband solutions."

      Of course, they failed to take into account that in many areas (such as mine), there are NO rivals. We can't get DSL here because SBC and Covad refuse to bring it out to us. We can't get microwave broadband because we can't see the transmission tower. All we can get is Residential Cable modem for $60/mo or a T1 for $600/mo.

      Oh, and IDSL for $100/mo (144kbps).

      I bet Comcast wouldn't have 5.3 mil broadband subscribers if there _was_ actual competition.
  • Comment removed (Score:3, Interesting)

    by account_deleted ( 4530225 ) on Wednesday February 11, 2004 @08:43AM (#8247897)
    Comment removed based on user account deletion
    • by Bish.dk ( 547663 ) <haasNO@SPAMitu.dk> on Wednesday February 11, 2004 @08:50AM (#8247967) Homepage
      Reading your post, I wish that the moderation system had a "+1 Scary".

      I doubt it will happen though. Some terminal systems may come that are nothing but internet-enabled TVs, but I doubt that anyone will manage to move the internet away from the basic protocols, which allow us all to create our own applications, and not just sit around waiting for the corporations to do it for us.
    • by bludstone ( 103539 ) on Wednesday February 11, 2004 @09:05AM (#8248088)
      I always hate posts like this.

      Slashdot and thousands of communities like it still exist today, and there is no sign that they are on the decline. Come to me when they start collapsing.

      Generally, we are clever enough to work around such problems.

      Sure, the Internet can be used like a TV, but I dont see the other services vanishing because of that fact.
    • by *weasel ( 174362 ) on Wednesday February 11, 2004 @09:19AM (#8248227)
      I'd have mod'd your post a troll, designed simply to elicit a railing anti-corporate sentiment from the rabid /. crowd. But you got a +5 Interesting so I'll play along.

      the Internet may be nothing more then a controlled system by Hollywood and the like

      In short: It can't. Not unless the internet topology itself is radically altered.

      So long as anyone can post a web server and serve content with a broadcast license or an expensive broadcasting 'vetting' system, they will. HTTP was dominated by the old guard of media because you and I can publish and consume via HTTP entirely without them, and apparently we netizens value such communication.

      So unless 'hollywood' buys the entire fiber backbone, all the comsat time, overthrows ICANN, and starts blocking all IP server traffic from publishers it doesn't personally greenlight - nothing can change.

      'Push' as a web technology never took off because no-one likes having to consume content at the schedule of a broadcaster. They tolerate it with TV and radio because there was no alternative. With an interactive alternative, push web technology was DOA.

      So as long as there is an alternative, Push will be unable to achieve hegemony in any medium. Unless of course, several currently illegal steps are taken by old media.
  • by Anonymous Coward on Wednesday February 11, 2004 @08:44AM (#8247902)
    So Comcast offers to buy Disney for $66.6 billion dollars. Any one else find something strange about that particular number?

    Anyhow, I hope Comcast cleans up Disney's act. I'm sick of their animators hiding age-inappropriate material in their cartoons.
    • by Ralph Wiggam ( 22354 ) * on Wednesday February 11, 2004 @09:24AM (#8248278) Homepage
      Those kind of huge deals are always negotiated as dollars per share or some stock swap ratio. That way each shareholder can figure out what it's worth to them. The news agencies multiply it out and report the huge numbers.

      -B
    • by Dachannien ( 617929 ) on Wednesday February 11, 2004 @11:00AM (#8249320)
      "So Comcast offers to buy Disney for $66.6 billion dollars. Any one else find something strange about that particular number?"

      Well, they suggested one million dollars first, but got laughed right out the front door.

  • by kurosawdust ( 654754 ) on Wednesday February 11, 2004 @08:44AM (#8247904)
    Comcast has placed this bid in spite of the fact that the company's president, Brian Roberts, is 5'4", a good three inches shorter than the "You Must Be This Tall to Aquire" statue outside Disney headquarters.
  • Com-who? (Score:3, Interesting)

    by danielrm26 ( 567852 ) * on Wednesday February 11, 2004 @08:44AM (#8247908) Homepage
    Comcast buy Disney? Is this a misprint? I'd have thought it would be the other way around. Disney is...well, Disney.

    This is like Blizzard buying Nabisco; shows you what I know about these companies. But I imagine many others thought the same about their relative sizes...
  • by selderrr ( 523988 ) on Wednesday February 11, 2004 @08:45AM (#8247911) Journal
    from their website, they seem to be a cable provider, but can one of you natives inform us, foreigners, how big comcast exactly is ?`br~ A Disney takeover by a cable company seems rather over-the-top
    • by leifm ( 641850 ) on Wednesday February 11, 2004 @08:50AM (#8247955)
      They're the largest cable provider here, and I think they are the number 2 ISP, maybe the largest broadband provider, not sure. At any rate I have comcast basic extended cable, and internet access and that runs about $100 a month, so multipy that by a few mil and they're probably doing ok.

      This suprises me though, I expected Microsoft to attempt to by Comcast at some point, but not Comcast to buy Disney...
    • by kalidasa ( 577403 ) * on Wednesday February 11, 2004 @08:51AM (#8247979) Journal
      Comcast has gobbled up most of the cable providers on the East Coast, at least; they are also cable broadband internet providers and a telephone company (though they're not a major player, as Bell Atlantic (NYNEX) is the big fish in that sector in this part of the US).
    • by DeepRedux ( 601768 ) on Wednesday February 11, 2004 @09:10AM (#8248141)
      Comcast is bigger than Disney. Comcast's market capitalization is 76.3B [yahoo.com], while Disney's is only 49.2B [yahoo.com]. (These number will move some in reaction to this bid.)

      One reason for the increase in cable bills is the cost of programming, especially for the ESPN sports channels. ESPN is owned by Disney.

      Also, this bid is a reaction to Murdoch's putting together his Fox channels with DirectTV.

    • by Hamhock ( 73572 ) on Wednesday February 11, 2004 @09:17AM (#8248203)
      Comcast is more of just a cable company. They are a media company, closer to the likes of Disney then you might think. They are a majority shareholder in the QVC channel, have a controlling interest in the E! Entertainment channel, own the Golf channel and Outdoor Life networks, own the G4 games channel, and own several sports teams.
      • by Roofus ( 15591 )
        Comcast sold it's half of QVC to Liberty Media sometime last year.

        And they own the Philadelphia 76ers (Basketball), and the Philadelphia Flyers (Hockey).
  • Good Investment? (Score:5, Interesting)

    by z0ink ( 572154 ) on Wednesday February 11, 2004 @08:45AM (#8247917)
    With the death of their traditional 2d animation studio and Pixas leaving is Disney really an investment anymore? I don't think Disney World is worth 66 billion.
    • Re:Good Investment? (Score:5, Interesting)

      by leifm ( 641850 ) on Wednesday February 11, 2004 @08:52AM (#8247985)
      I'd guess they really want the TV properties Disney holds, as a cable company owning ESPN can't be a bad thing.
    • Re:Good Investment? (Score:5, Informative)

      by Zeinfeld ( 263942 ) on Wednesday February 11, 2004 @09:14AM (#8248174) Homepage
      With the death of their traditional 2d animation studio and Pixas leaving is Disney really an investment anymore? I don't think Disney World is worth 66 billion.

      Disney owns the ABC network, several cable channels, the theme parks, two major studios and a huge catalog of material. They also have a global brand and can market their stuff worldwide.

      The point is that Disney is not making anywhere near what those assets should produce. They are in a situation very similar to the pre-Eisner Disney.

      The point of a takeover would be to ditch Eisner. That would be the quickest way of getting the company moving again. he did great for the company when he started. But he has gone flabby. Disney has not been scoring the hits it needs to keep the Empire going.

      Look at the Mickey Mouse brand. My kid does not know who Mickey is. If you don't work the brand it soon looses traction. My kid knows Dora the Explorer and Max and Ruby better than what was once the worlds best known cartoon character.

      The other problem with Disney is that the mawkish sentimentality that worked well through the 50s and 60s is no longer so much in vogue.

      Disney needs a Jim Collins makeover.

  • by Reinout ( 4282 ) <reinout&vanrees,org> on Wednesday February 11, 2004 @08:46AM (#8247923) Homepage
    Disney is, of course, well-known. Big company, earning a lot of cash.

    For comcast I (I'm from Europe) had to visit their website. Looks like a run-of-the-mill cable company. Telephone, internet and television over standard cable. They're probably big, but big enough to take on Disney...

    Perhaps their stock price is way up so they can pay for this with stocks only... Stuff likes this just seems so artificial, just like there 's no real money involved. (Which probably is the case...)

    Reinout
    • by Orne ( 144925 ) on Wednesday February 11, 2004 @10:36AM (#8249064) Homepage
      They happen to be a run-of-the-mill cable company with a lock on the WashingtonDC-Philadelphia-Newark-NewYorkCity cooridor, the 4th largest [nielsenmedia.com] TV viewing market in the USA, and 5th largest radio market. They are their own sports broadcast provider (Comcast Sports) with near-exclusive baseball, basketball & hockey coverage for the region (Normally you will only get a game on broadcast TV if the stadium is sold-out, Comcast gets them all the time).

      As mentioned before, Comcast [yahoo.com] is approximately 1.5x the size of Disney [yahoo.com], and are essentially a pure content distribution company. Disney under their umbrella would give them additional content to distribute... And think of all the movies that Disney has rights to, suddenly it would make the HBOs and Cinemaxes of the world a lot less powerful if Comcast could bring you Disney/Miramax/BuenaVista movies first. And look at what AOL did with TimeWarner, suddenly you had the Merry Melodies (Bugs Bunny et al) characters as part of their advertising campaigns == instant public mascot recognition. You better believe that Comcast would milk the Disney characters for commercials...

      The biggest complaint last year is that ESPN sports content (who have a firm grip on broadcasting college sports nation-wide) was expensive... ESPN is a piece of Disney, so Comcast would own another valuable piece to the sports pie. The college NCAA tournaments in March are a month long advertising spree, and I'm sure Comcast would love to be a middle-man [brighthous...tising.com] in that system.

      Personally, I hate what Eisner has done to the Disney legacy, so anything to remove him from CEO would be a good thing in my opinion. Unfortunatly, a buy-out like this would only contain a Platinum Parachute (this guy already paid himself enough gold) that would make Eisner richer... something he hasn't deserved for a decade.
  • by shaldannon ( 752 ) on Wednesday February 11, 2004 @08:47AM (#8247930) Homepage
    ISP buys media giant. ISP tries to merge businesses. ISP fails. ISP discards its name and adopts media giant's name. Stock plummets.
    • by TopShelf ( 92521 ) on Wednesday February 11, 2004 @08:57AM (#8248022) Homepage Journal
      The difference here is the cable TV aspect, however. If Comcast buys Disney, which includes ESPN, for example, you can bet that competitors to ESPN (i.e. Fox Sports) will get 2nd class treatment on their systems. If I recall correctly, isn't something like this the case in Philadelphia, where Comcast owns the Flyers, but if you have some other service, you can't get most of their games on TV?
  • by vpscolo ( 737900 ) on Wednesday February 11, 2004 @08:47AM (#8247933) Homepage
    "Disney is one of the world's biggest and best known media companies, and is responsible for everything from Mickey Mouse cartoons to blockbuster movies such as Toy Story."

    But Pixar made Toy Story, Disney just published it and Pixar have just dropped Disney. Almost like rats (mice) leaving a sinking ship

    Rus
    • by tinrobot ( 314936 ) on Wednesday February 11, 2004 @09:16AM (#8248198)
      Actually, Disney owns the copyright to Toy Story, the characters and the merchandising rights. They own all of the Pixar films to date. If Disney wants to, they could make Finding Nemo II all by themselves.

      The deal with Pixar was that Disney owns the films and pays for distribution, the two companies split production costs 50/50, but Pixar only gets 35% of the back end.

      No wonder Pixar's shopping elsewhere.
  • Expansion (Score:5, Interesting)

    by lukewarmfusion ( 726141 ) on Wednesday February 11, 2004 @08:49AM (#8247940) Homepage Journal
    Comcast is expanding fast - too fast, perhaps. They bought out the AT&T service here in my area. I'm not sure of all the details of that merger/purchase/whatever, but our service went from expensive to holy crap in no time. Also, they're ridiculous about support and customer service. I don't expect them to improve the state of Disney at all if this thing works out for them. Was going to post: If you want to buy Disney, there's a whole store at the mall selling them.
  • by Anonymous Coward on Wednesday February 11, 2004 @08:49AM (#8247946)
    I say ---fine! What you are going to see is, competing cable/sat companies avoiding as much any Disney-branded product as possible, lest they subsidize their own competition.

    This merger proposal is all about Roberts' ego.

    Here's the letter:
    **************

    February 11, 2004

    Mr. Michael D. Eisner
    The Walt Disney Company
    500 South Buena Vista Street
    Burbank, California 91521

    Dear Michael:

    I am writing following our conversation earlier this week in which I proposed that we enter into discussions to merge Disney and Comcast to create a premier entertainment and communications company. It is unfortunate that you are not willing to do so. Given this, the only way for us to proceed is to make a public proposal directly to you and your Board.

    We have a wonderful opportunity to create a company that combines distribution and content in a way that is far stronger and more valuable than either Disney or Comcast can be standing alone. To this end, we are proposing a tax-free stock for stock merger in which Comcast would issue 0.78 of a share of its Class A voting common stock for each share of Disney. This represents a premium of over $5 billion for your shareholders, based on yesterday's closing prices. Under our proposal, your shareholders would own approximately 42% of the combined company.

    The combined company would be uniquely positioned to take advantage of an extraordinary collection of assets. Together, we would unite the country's premier cable provider with Disney's leading filmed entertainment, media networks and theme park properties. In addition to serving over 21 million cable subscribers, Comcast is also the country's largest high speed internet service provider with over 5 million subscribers. As you have expressed on several occasions, one of Disney's top priorities involves the aggressive pursuit of technological innovation that enhances how Disney's content is created and delivered. We believe this combination helps accelerate the realization of that goal-whether through existing distribution channels and technologies such as video-on-demand and broadband video streaming or through emerging technologies still in development-to the benefit of all our shareholders, customers and employees.

    We believe that improvements in operating performance, business creation opportunities and other combination benefits will generate enormous value for the shareholders of both companies. Together, as an integrated distribution and content company, we will be best positioned to meet our respective competitive challenges.

    We have a stable and respected management team with a great track record for creating shareholder value. In fact, our shares have consistently outperformed leading stock indices by significant margins, including the S&P 500 by a margin of more than 2 to 1 since Comcast went public in 1972. The Comcast management team greatly appreciates and is highly respectful of the Disney heritage. We know that there are many talented executives at Disney who we envision would also play a key role in managing the combined company. We also would welcome directors from your Board joining our Board. We have analyzed the issues associated with regulatory approval and are confident that all necessary approvals can be obtained in a timely fashion. Given the landscape that has evolved in our industry over the past few years, the creation of integrated content and distribution companies is essential to increasing the level of competition. The FCC's existing program access and program carriage rules ensure that the combined company will continue to make all of its satellite-delivered national and regional cable networks available on a non-exclusive, non-discriminatory basis and that there will be no discrimination against unaffiliated programming services, all consistent with the undertakings made by News Corp. in its recent acquisition of DirecTV. We hope that the Disney Board will pursue the opportunity that this proposed combination presents to your shareholders.

    Very truly yours,

    Brian L. Roberts
    President and Chief Executive Officer

    Cc: Board of Directors,
    The Walt Disney Company
  • ACK! (Score:4, Funny)

    by Saint Mitchell ( 144618 ) on Wednesday February 11, 2004 @08:50AM (#8247966)
    Don't do that to me. My arm went numb and I saw my life flash before my eyes. I haven't had coffee yet people. Talk about an unholy union. Sheesh, I thought AOHell and Time Warner was bad. Throw fox in there and I think you start the Apocalypse.
  • God forbid (Score:4, Funny)

    by kiwimate ( 458274 ) on Wednesday February 11, 2004 @08:50AM (#8247969) Journal
    Something else for Comcast to make a complete and utter mess. Oh, yay.

    Is there anyone out there who was with another company that got taken over by Comcast that doesn't have a complaint about how terrible they are? Or witness the recent discussion [slashdot.org] on cable vs satellite TV, and how many anti-Comcast diatribes came out there. Or do you want another view [dslreports.com]?

    If Comcast takes over Disney, be prepared for Mickey Mouse and Donald Duck unavailability on a frequent basis. Mind you, at least they'll be able to put a spin on all the comments about their Mickey Mouse technical support, so maybe that's the reason they're going for this.
  • Dammit! (Score:3, Funny)

    by The I Shing ( 700142 ) * on Wednesday February 11, 2004 @08:51AM (#8247975) Journal
    Dammit, ComCast topped my offer of $75 and a ten-pack of Wrigley's Spearmint Gum.
  • I can see that they have carefully timed this whole thing. They clearly waited until all of the quality had left. They pounced right after Disney got rid of that dirty animation studio and waited for the whole Pixar filth to clear. Such a well planned and carefully timed merger cannot fail!
  • by Andy_R ( 114137 ) on Wednesday February 11, 2004 @09:00AM (#8248051) Homepage Journal
    Given that Disney just lost their main content supplier (Pixar), and are creatively running on empty (Atlantis, Lilo and Stitch, dozens of straight to video cash-in sequels to classics anyone?), this seems like a lot of money for a chain of shops, a few theme parks and a stack of about-to-go-out-of-copyright cartoon characters.

    Pixar have shown a start-up can outdo Disney at animation, Universal and Busch have shown the theme parks are cost effective to build from scratch, and the shops are nothing special.
    • by crawling_chaos ( 23007 ) on Wednesday February 11, 2004 @09:11AM (#8248146) Homepage
      Given that Disney just lost their main content supplier (Pixar)

      They still have the NFL, MLB, and the NBA, plus all those college games and PTI on ESPN (whooo, acronym overload!). Disney is much more than an animated movie house anymore. Also, imagine if Comcast managed to score exclusive on-demand rights to the classic kiddie movies with this deal. That would put the hurt on DirecTV in households with small children.

    • Not quite... (Score:5, Insightful)

      by tkrotchko ( 124118 ) * on Wednesday February 11, 2004 @09:15AM (#8248186) Homepage
      "this seems like a lot of money for a chain of shops, a few theme parks and a stack of about-to-go-out-of-copyright cartoon characters."

      Don't forget ABC and ESPN. Those are probably of more interest to Comcast than cartoons and theme parks.

  • by techmuse ( 160085 ) on Wednesday February 11, 2004 @09:03AM (#8248070)
    I can imagine that you might go on the Space Mountain ride some time between 8 AM and 4 PM. You must stand in line the entire day, and they will not tell you when you will ride. Riding will now require a converter seat that will make your pants compatible with the unusual seats in their rides. The price of a cartoon will go up 10% per year, and will have worse encoding every year. There will be hundreds of rides to choose from, but most of them will just be place holders for rides that don't really exist.
  • by walterbyrd ( 182728 ) on Wednesday February 11, 2004 @09:03AM (#8248075)
    Would Comcast change the Disney name? I would hope not.
  • by Arcturax ( 454188 ) on Wednesday February 11, 2004 @09:08AM (#8248122)
    Now there is a match made in hell...
  • Great for M$ (Score:5, Interesting)

    by EmagGeek ( 574360 ) on Wednesday February 11, 2004 @09:10AM (#8248143) Journal
    Since M$ owns much of if not a majority stake in Comcast, this is a great way for them to get into a position to dominate media distribution like they've always wanted to... Don't forget that M$ led a drive to make "high definition" television 640x480, which is lower resolution than analog tv, just for their own benefit.

    They're salivating over the chance to get their DRM-hooks into a big media company..
  • by ThePretender ( 180143 ) on Wednesday February 11, 2004 @09:12AM (#8248156) Homepage
    I'm wondering if he will come out with a blazing attack saying that this is even worse for Disney or if he'll support anything that is anti-Eisner.
  • by Silwenae ( 514138 ) * on Wednesday February 11, 2004 @09:14AM (#8248177) Homepage
    I'd be suprised if the FCC / SEC let this go through. There seem to be too many conflicts of interest in a cable company owning a content creator.

    As far as I understand, cable providers pay (and pass on those costs to customers) for channels like ESPN (which just raised how much they charge cable companies because of ESPN-HD, and had some fights with other cable companies about those rates) and having one company who creates TV shows (for ABC and others) and movies (Disney & Touchstone).

    Wouldn't Comcast be able to give themselves exclusive content, whether it's a ESPN channel, first run of pay per view movies created by Disney et al, or save on syndication rights on Comcast / Disney run stations? How many times have we seen actors sue over syndication rights when a company like Fox only syndicates to FX? (Or ABC to ABC Family, etc).

    And I have a hard time believing that Comcast would pass on those savings (creation & distribution) to their cable customers.
  • by mr_resident ( 222932 ) on Wednesday February 11, 2004 @09:16AM (#8248194) Homepage
    When Comcast runs Disneyland:

    The park will vanish mysteriously for hours at a time then reappear with no explanation or refunds.

    You'll be forced to ride really crappy rides if you want to ride the more popular ones.

    No Linux users will be served food or drink or be allowed to use restroom facilities.

    The fun will be capped at an undisclosed level.
  • by musikit ( 716987 ) on Wednesday February 11, 2004 @09:20AM (#8248240)
    to get tech support from Mickey Mouse press 1
    to get tech support from Donald Duck press 2
    to get tech support from Goofy press 3

    *2*

    Donald: *nonsensical rambling*
    Me: umm yeah i'm not getting any internet access
    Donald: *nonsensical rambling*
    Me: reboot the router?
    Donald: *nonsensical rambling*
    Me: cool. that worked thanks!
  • by way2trivial ( 601132 ) on Wednesday February 11, 2004 @09:20AM (#8248247) Homepage Journal
    is there any better proof that comcast seriously overcharges consumers for services than this type of expenditure?

    they argue about regulation of the cable industry when they cry about razor thin profits.. then they BUY DISNEY?

    cable companies are as weird a governmental supplied monopoly as baseball.. they have far to much a stranglehold over their individual market, and not enough oversight...

  • by pulse2600 ( 625694 ) on Wednesday February 11, 2004 @09:49AM (#8248572)
    ...I know of another theme park that should go for a decent price... Neverland Valley - Michael Jackson's Kingdom of Dreams and Magic [neverland-valley.com]
  • by mbstone ( 457308 ) on Wednesday February 11, 2004 @09:56AM (#8248643)
    that this article appears next to an article about Harlan Ellison, who originally reminded us, you don't fuck with the Mouse. [harlanellison.com]
  • Show Biz (Score:3, Insightful)

    by sammyo ( 166904 ) on Wednesday February 11, 2004 @09:58AM (#8248674) Journal
    Takes nerve and madness, cable companies want something stable. At some point the execs can't take the volitility of the Showbiz life and either divest or quash the creativity to a degree that the former productions are just a memory.

    Exec moans, "Why don't people like our great new movie 'Finding Nemos Second Cousin Twice Removed 3D'? It had the most expensive graphics ever produced, I just don't understand these people".
  • by Dave21212 ( 256924 ) <dav@spamcop.net> on Wednesday February 11, 2004 @10:00AM (#8248688) Homepage Journal

    Think about this deal the next time your pay your cable bill, especially if they are a cable monopoly in your area as they are here in Baltimore...
    Now I know where all those extra charges are going !

    Oh, and then think about getting a dish [directtv.com].

    Anyone here feel that Disney+Comcast would be a Good Thing ?
    • by applemasker ( 694059 ) on Wednesday February 11, 2004 @10:18AM (#8248881)
      Unfortunately, not so unusual. In the NY/NJ area, Cablevision is the biggest cable tv game in town and they regularly screw over their subscribers by positioning Cablevision-owned properties on the lineups at the expense of competitors. For example, we get Independent Film Channel (IFC) which is owned by Cablevision, but not Sundance (similar programming, owned by Turner.) MSG Sports Network (Cablevision) is on basic, while YES and Fox Sports are quasi-premium (you need "Basic Plus" or can pay a la carte).

      In 2001 when the Yankees did not renew with MSG but instead formed the YES Network, Cablevision refused to carry YES for that entire season because YES wanted to be on "basic" tier (like MSG, Fox Sports, etc.) while Cablevision wanted to charge it as a Premium Channel, like HBO.

      Subscribers were the ones who got screwed for that year, while Cablevision just continually hikes their rates, and provides mediocre cable service. Their digial rollout was a complete disaster, too.

      The Dolan Family who owns Cablevision also owns the Knicks and Rangers -- both of which have the higest payrolls but are among the worst teams. Thank heavens the Dolans never were able to buy into the Yankees a few years ago like they tried.

      Can someone please explain if I can buy telehpone service, natural gas, or electricity from 15 differnet suppliers, why should cable tv be any different?

  • by tverbeek ( 457094 ) on Wednesday February 11, 2004 @10:03AM (#8248719) Homepage
    Comcast Cable TV
    Comcast Internet
    Disney Studios
    Disney Animation (including The Mouse et al.)
    Touchstone Pictures
    Miramax
    Buena Vista Studios
    Buena Vista Theaters
    Buena Vista Music
    Disneyland/world/resorts/etc
    ESPN
    Disney Stores
    Lifetime
    A&E
    E!
    ABC
    Radio Disney
    Hyperion Books
    SOAPnet
    History Channel
    Go.com
    Movies.com
  • by British ( 51765 ) <british1500@gmail.com> on Wednesday February 11, 2004 @10:18AM (#8248879) Homepage Journal
    I've got Comcast. From what I understand, ESPN is strong-arming cable companies to include other channels(whether you want em or not) in cable packages, otherwise they terminate contracts. Hence, no "a la carte" package systems for cable subscribers.

    If Comcast buys out Disney, hence, ESPN, would I see a reduction in rates since they own them?
  • by callipygian-showsyst ( 631222 ) on Wednesday February 11, 2004 @10:43AM (#8249161) Homepage
    You've just won the Superbowl! What are you going to do next?

    "We're going to COMCASTLand!

    Seriously, I've worked for the Walt Disney Company through thick and thin. I stuck with them when they flushed millions of $$$ down their dot-com debacle (and made me work with usavory characters like Patrick Naughton [rotten.com]. I've been laid off (on my 40th birthay) and hired back. They've tried to replace me with people half my age (and wanted me to train them!).

    But I've stuck with them because I believed in the "concept" of the Walt Disney Conpany, even if I didn't have complete faith in the current administration. I just liked Disney.

    I hope Comcast knows what they're doing!

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