Comcast withdraws proposal to merge with Disney
Cable giant Comcast announced to withdraw its $54
billion merger proposal to Disney and shelved plans to create
the world's largest entertainment company.
After repeated rejections of its unsolicited
offer to Disney, Comcast has decided to focus on working on its
finance rather entering a new mega-merger. "It has become clear
that there is no interest on the part of Disney's management and
Board in putting Comcast and Disney together," said Brian
Roberts, CEO of Comcast indicating some frustration of the bold
rejections of Disney. "We have always been disciplined in our
approach to aquisitions. Being disciplined means knowing when it
is time to walk away. That time is now," he said.
The withdrawal was announced together with the
firm's first qurater results which showed net income of $65
million compared to a loss of $355 million on year ago. Comcast
shares rose 1.8 percent to $30.50, Disney shares were slightly
up 0.02 percent to $25.14 early Wednesday as reaction to the
announcement. A merger between Comcast and Disney would have
created the world's largest entertainment company reaching 21.5
million US households.
Comcast also said it won 35,000 new customers in
the most recent quarter mainlky from satellite providers such as
DirecTV, added 394,000 cable Internet customers and increased
its cash flow to about $400 million.
