Posted on: Thursday, April 29, 2004

Comcast withdraws $54B offer for Disney

By Bill Bergstrom
Associated Press

PHILADELPHIA — Cable giant Comcast Corp. dropped its two-month-old unsolicited bid for The Walt Disney Co. yesterday after being rebuffed by Disney and encountering resistance from its own shareholders.

The offer, originally valued at $54 billion, was rejected by Disney as too low, while Comcast investors clearly objected to a new, higher bid that would have diluted the value of their shares.

The nation's largest cable provider said it would look for other growth opportunities, including bankrupt Adelphia Communications Corp., and go ahead with a previously announced $1 billion stock repurchase program sidelined while the Disney bid was pending.

Disney promised to stay the course with its current management.

Comcast stock rose 23 cents to close at $30.20 a share on the Nasdaq Stock Market, while Disney shares fell 23 cents to $23.95 on the New York Stock Exchange.

Brian L. Roberts, president and chief executive of Comcast, said Disney's management made clear it had no interest in putting the two companies together.

"As a result, we have withdrawn our offer," Roberts said. "(We know) when it is time to walk away."