defend against the hostile bid

[adambreakey]

Analysts say Disney will likely consider other actions before firing Eisner, including making a defensive acquisition, such as buying satellite television company EchoStar Communications. Such a move would place huge regulatory hurdles in the way of Comcast's $54 billion bid because of Comcast's cable television holdings. Comcast is the nation's largest cable provider, with 21.5 million customers.

Now that is an interesting defense.

full article...
http://story.news.yahoo.com/news?tmp...comcast_disney

[marty3d]

Other options they are considering:



http://business.timesonline.co.uk/ar...001531,00.html

George Mitchell, the former Northern Ireland peacemaker and Disney’s “presiding director”, has been advised to find a replacement for troubled chief executive Michael Eisner in the run-up to a crunch shareholder meeting on March 3....At this early stage advisers said that four other defence strategies were also being worked on for the board’s consideration:

- A so-called Pacman defence, whereby Disney launches a counterbid for Comcast

- Disney launching a bid for a company such ...Echostar. This would give the House of Mouse a pay-television distribution arm, and go some way to answering the strategic arguments behind combining Comcast with Disney

- Finding a white-knight bidder who would seek to complete a friendly merger with Disney

- Selling off key assets to refocus the company as an entertainment-content group.

However, advisers are arguing that the strategy most likely to succeed in maintaining Disney’s independence is ousting Eisner and replacing him with someone more respected by shareholders.

I think whatever happens, Eisner is out. However, the first option is interesting - Comcast merger goes ahead - but Disney swallows Comcast rather than the other way around.

[adambreakey]

That is interesting - however, buying comcast as a defense would only pull Disney further away from their core business. I would like to see the last option (selling of parts to return to core business) happen. Although, i am fairly certain that won't happen.

adamb

[marty3d]

I know - some analysts say that if Disney sells off ESPN and some of their other network assets, they become a less likely takeover target. One thing that has to be considered - Comcast might be willing to buy those assets from Disney, then walk away. Corporate blackmail.

or a very high stakes game of Poker.