DISNEY-COMCAST PROJECT BREATHS NEW LIFE INTO CABLE-CONTENT ROMANCE.

PositionBrief Article

The American cable operator Comcasts bid for Disney illustrates distributors attraction to content suppliers in a changing American media landscape. The idea of a convergence of cable and content was in vogue at the height of the internet bubble and collapsed alongside the casualties of mergers between AOL and Time Warner and between Vivendi and Universal. Analysts are therefore focussing primarily on the financial potential of the deal. "Market conditions are very different today" and "the premium Comcast is offering (10%) is significantly lower than the 60% that AOL offered at the time", says a USB Warburg stockbroker. Another of Comcasts assets is its "reputation of being able to digest large acquisitions following the buy-up of ATT cable operationso, says David Mercer, an analyst at research and consulting firm...

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