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UPDATE: Disney Rejects Comcast Bid

17 Feb, 2004 By: Erik Gruenwedel

Citing a lack of shareholder value “now and in the future,” The Walt Disney Co.'s board of directors Tuesday denied last week's $66 billion acquisition bid by Comcast Corp.

In its rejection of the Comcast offer, Disney's board, in a note to investors, said Comcast's stock bid of 0.78 per share for each full share of Disney amounted to $3.60 per share less than Disney's market value.

The board, which said it would consider any proposals that included an “appropriate premium to reflect the full value of Disney,” also expressed confidence in the “business, financial and creative direction of Disney under the leadership of Michael Eisner and his management team.”

Eisner, who has run Disney for nearly 20 years, has come under fire recently from critics, including Walt Disney's nephew Roy Disney, who questioned the CEO's leadership.

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