Comcast drops bid to buy Disney

Comcast Corporation said on Wednesday that it has withdrawn its $54.1 billion proposal to merge with Disney, effective immediately.

Brian L Roberts, President and Chief Executive Officer, Comcast, said: "We have always been disciplined in our approach to acquisitions. Being disciplined means knowing when it is time to walk away. That time is now."

"It has become clear that there is no interest on the part of Disney's management and Board in putting Comcast and Disney together," Roberts added. "As a result, we have withdrawn our offer."

• Comcast makes $66-billion bid for Disney
• Eisner no more Disney chairman

"Comcast is in the best shape in its history," Roberts said.  "As emphasized by our first quarter numbers just released today (Wednesday), we are off to a great start this year and are uniquely positioned to deliver superior growth and value to our shareholders in 2004 and beyond.  With over 21 per cent cash flow growth this quarter, we are the fastest growing media and telecommunications company in the nation.  In addition, now that we have withdrawn the Disney proposal, we are once again in a position to move forward with our previously announced $1 billion stock repurchase programme."

Key highlights from Comcast's first quarter results include:

• 21% OCF growth in cable and 67.9% increase in OCF in content
• 35,000 more basic cable subscribers
• 394,000 more high-speed data customers while growing ARPU from $41.33 in the fourth quarter of 2003 to $42.46 in the first quarter of 2004
• Almost $400 million in free cash flow after all taxes and interest

Comcast Corporation is principally involved in the development, management and operation of broadband cable networks and in the provision of programming content. The company is the largest cable company in the United States, serving more than 21 million cable subscribers.