Just when you thought the idea of media convergence was dead and buried, it's back in a big way. Today, Comcast, the the largest cable company in the U.S., made a bid for Disney, the Mickey Mouse people. The deal would combine a wires (distribution) business with a content production business, the same model behind BCE's convergence strategy and Time Warner's convergence strategy. It's also the same imperative, albeit to a less degree, that drove Rogers Communications to acquire Maclean's, some radio stations, and magazine properties.
“We have a wonderful opportunity to create a company that combines distribution and content in a way that is far stronger and more valuable than either Disney or Comcast can be standing alone,” Comcast CEO writes in a letter to Disney CEO Michael Eisner (
Some other press clippings today on the subject:
Comcast launches hostile bid for Disney
Comcast Corp. Wednesday launched a surprise all-stock offer to buy Walt Disney Co. for about $54.1-billion (U.S.), touting the hostile bid as a chance to create a “unique” world-leading entertainment and communications company in the face of failed talks at an executive level aimed at bringing the two together . . .
Comcast, Disney Are 'Perfect Merger Partners': Merrill
The rationale of the Comcast-Disney union is the combination of content and technology, the same as in the News Corp. merger with DirecTV, says Merrill Lynch analyst Jessica Reif Cohen….
The Mouse Without Mike?
Because Michael Eisner apparently rejected Comcast's advances, it is unlikely that he would have a job at the combined company. Observers say Viacom and News Corp. might jump in with bids as well. . .