Comcast has finally called off its bid for Disney. Brian L. Roberts, President and Chief Executive Officer of 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.” Right on Brian. We always have said that the merger does not make sense.
Now why Comcast stopped chasing the mouse: In the most recent quarter, the company reported higher revenues but fell short on earnings per share. Higher revenues were result of increases in subscriber fees and not new accounts. Higher expenses were because it is now having to fight tooth and nail for accounts with satellite and phone companies. Telephony subscriber base decreased by 20,000, as the company continues to focus on improved profitability and most importantly the High Speed Internet sales have started to slow down as Baby Bells ramp up their offerings to higher speeds and cut prices. The company added 394K new subscribers in the first quarter 2004, down 5.5 percent from 417,000 in the first quarter 2003.
3 comments so far
7:04 AM PT
I was just reading one analysts thoughts that Comcast would have to dump its bid for Disney if it was serious about pursuing Adelphia…..I’d be curious to see if they’ve begun switching targets….
We posted something the other day, and saw a bunch of trackbacks from Adelphia executive inboxes….so I’m curious if that analyst was right…..
7:04 AM PT
I have heard something to that affect as well. I am sure Adelphia would make better sense given that Comcast’s organic growth is going to slow down as time goes on. I think the justice department is sleeping on this one. comcast is slowly beginning to squeeze customers with higher prices. Also Karl, what is your email - i needed to get in touch with you.
7:04 AM PT
I keep waiting to see something come of that McCain industry pressure but it never does….
Karl@dslreports.com…..
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