Return to Transcripts main page
CNN Live At Daybreak
Mickey Mouse Merger?: Comcast Makes Hostile Bid for Walt Disney
Aired February 12, 2004 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little "Business Buzz" now. How much would you pay for Mickey Mouse, more than $50 billion?
Carrie Lee live from the Nasdaq market site.
This could turn into quite a battle, huh?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It certainly looks that way, Carol. First of all, Comcast yesterday making an unsolicited take-over offer for Walt Disney, $56 billion in stock, assumption of $12 billion in Disney debts.
Now yesterday, the stock prices really moved. Comcast shares down about 8 percent, really valuing this deal now at about $49 billion. Walt Disney shares yesterday, and Disney is in the Dow so helping that index, gained 15 percent yesterday. So the fact that Disney's stock rose above the offer price is causing some people on Wall Street to think that this deal really is in play.
They are saying Comcast may have to raise this offer to actually cause this takeover to happen and that other companies, maybe Viacom, maybe News Corporation may come into play. Now News Corp has said that it's not interested in talks with Disney, but that is the latest here. Disney says that it will carefully evaluate Comcast's offer.
As all of this goes on, there is a campaign to oust Disney CEO Michael Eisner from the helm. So that is sort of a side issue here.
What does all this mean for Comcast? Well, they would have quite a nice treasure-trove of assets, including the ABC Network, the Disney film studio, Mickey Mouse to little Nemo, that orange clown fish. Of course, Carol, we know the history of the media business, mergers don't always go smoothly. Think of our parent company AOL and Time Warner.
COSTELLO: Did you have to mention that -- Carrie?
LEE: But that's a side issue as well. Well, yes, it's a side issue, but something certainly that they have to consider.
COSTELLO: Definitely.
LEE: Content distribution kind of a tough thing to put together sometimes.
COSTELLO: Got you. Hey, quick look at the futures.
LEE: Things look pretty flat right now, but we saw a very nice day for the bulls yesterday. In fact, the Dow closing at its highest level since June of 2001. The Dow, the S&P 500 each gaining over 1 percent on bullish comments from Fed Chief Alan Greenspan regarding interest rates and the state of our economy. Dell Computer, or rather Dell, Inc., excuse me, they dropped the Computer, coming out with profits after the bell tonight. We'll be watching that one.
COSTELLO: All right. Carrie Lee live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Disney>
Aired February 12, 2004 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little "Business Buzz" now. How much would you pay for Mickey Mouse, more than $50 billion?
Carrie Lee live from the Nasdaq market site.
This could turn into quite a battle, huh?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It certainly looks that way, Carol. First of all, Comcast yesterday making an unsolicited take-over offer for Walt Disney, $56 billion in stock, assumption of $12 billion in Disney debts.
Now yesterday, the stock prices really moved. Comcast shares down about 8 percent, really valuing this deal now at about $49 billion. Walt Disney shares yesterday, and Disney is in the Dow so helping that index, gained 15 percent yesterday. So the fact that Disney's stock rose above the offer price is causing some people on Wall Street to think that this deal really is in play.
They are saying Comcast may have to raise this offer to actually cause this takeover to happen and that other companies, maybe Viacom, maybe News Corporation may come into play. Now News Corp has said that it's not interested in talks with Disney, but that is the latest here. Disney says that it will carefully evaluate Comcast's offer.
As all of this goes on, there is a campaign to oust Disney CEO Michael Eisner from the helm. So that is sort of a side issue here.
What does all this mean for Comcast? Well, they would have quite a nice treasure-trove of assets, including the ABC Network, the Disney film studio, Mickey Mouse to little Nemo, that orange clown fish. Of course, Carol, we know the history of the media business, mergers don't always go smoothly. Think of our parent company AOL and Time Warner.
COSTELLO: Did you have to mention that -- Carrie?
LEE: But that's a side issue as well. Well, yes, it's a side issue, but something certainly that they have to consider.
COSTELLO: Definitely.
LEE: Content distribution kind of a tough thing to put together sometimes.
COSTELLO: Got you. Hey, quick look at the futures.
LEE: Things look pretty flat right now, but we saw a very nice day for the bulls yesterday. In fact, the Dow closing at its highest level since June of 2001. The Dow, the S&P 500 each gaining over 1 percent on bullish comments from Fed Chief Alan Greenspan regarding interest rates and the state of our economy. Dell Computer, or rather Dell, Inc., excuse me, they dropped the Computer, coming out with profits after the bell tonight. We'll be watching that one.
COSTELLO: All right. Carrie Lee live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Disney>
