Sports Law Blog
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Wednesday, February 11, 2004

Comcast Makes Bid for Disney: Comcast, the nation's largest cable provider has made a $50 billion stock swap bid for Disney, in a deal that would create the largest media company in the world. At least initially, investors have said the deal is undervalued and Comcast may need to increase its bid by as much as $10 per share to complete its bid. The initial offer was for $26.47 a share, a 10% premium on Tuesday's closing price.

This could prove to be a major battle for Michael Eisner, the CEO of Disney. He turned down the offer made by Comcast CEO Brian Roberts in a meeting Monday, prompting Roberts to go public. Eisner has come under increased fire in the past year over Disney's performance and his management of the company, prompting some to believe this may give the stock holders a chance to bring about his ouster.

Comcast owns a number of professional sports franchises in Philadelphia and is the major cable provider in the nation. Disney owns ESPN and ABC, and at one time owned both Anaheim Angels (MLB) and Mighty Ducks (NHL).