Comcast Corp. has dropped its $48.4 billion hostile takeover bid for The Walt Disney Co.
“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, president and chief executive officer of Comcast. “Being disciplined means knowing when it is time to walk away. That time is now.”
Comcast’s decision is a victory for the “just say no” takeover-defense tactic. Disney never seriously considered Comcast’s offer. Of course, Comcast could have upped its initial bid. But it chose not to, presumably because it didn’t feel Disney was worth the price, given its assets.
Now that Comcast has withdrawn the Disney bid, executives at the nation’s largest cable company said that it is in a position to move forward with a previously announced $1 billion stock repurchase program.
Comcast’s decision came one day after Disney’s board reiterated its support for chief executive officer Michael Eisner.