Whoa Whoa Whoa!
Comcast has made a bid to merge with Walt Disney in a stock swap that the world’s largest cable operator said values Disney at $54.1 billion. The merger is hinged on broadband synergies, according to the statement released by Comcast. Comcast said the combination would create the world’s No. 1 entertainment and communications company with a presence in all top 25 markets in the U.S., and would “propel broadband forward.” The combined company would have an “unparalleled distribution platform and an extraordinary portfolio of content assets.”
In an open letter to Michael Eisner of Disney, here’s what Brian Roberts, CEO of Comcast wrote: “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.” [PaidContent.org]