The cable giant Comcast Corp. is dropping its takeover bid for The Walt Disney Co., saying Disney management has made it clear it has no interest in putting the two companies together.
The decision was announced Wednesday by Brian L. Roberts, president and chief executive of Comcast, who said the Disney stance led him to conclude it was time to abandon the proposed merger.
Philadelphia-based Comcast stunned the industry Feb. 11 when it offered stock valued at $54 billion at the time for the media and entertainment powerhouse.
But Disney rejected the offer, saying it was too low.
"We have always been disciplined in our approach to acquisitions," Roberts said in Wednesday's statement. "Being disciplined means knowing when it is time to walk away. That time is now."
The decision comes amid turbulent times for the powerful entertainment company, which owns ABC, ESPN, movie studios and theme parks.
The Comcast offer was made as Disney and its longtime leader Michael Eisner were facing pressure from shareholders including one-time board member Roy Disney who were unhappy with the company's financial performance and its stock price.
Shareholders made their dissatisfaction clear at the annual meeting in March when 45.3 percent of all votes cast withheld support from Eisner for re-election to the board.
After the meeting, Disney's board split the roles of chairman and CEO, naming board member George Mitchell as chairman and leaving Eisner as CEO.
Eisner and the board nonetheless have repeatedly insisted Disney is headed in the right direction, and did not need to team up with a distribution company like Comcast.
Comcast is the nation's largest cable company with 21 million subscribers, and has a stake in several cable networks.
Last month, Disney voted to split the roles of chairman and chief executive, naming board member George Mitchell as chairman and leaving Michael Eisner with only the title of CEO.
Calls to Disney spokesman John Spelich were not returned early Wednesday.
But late Tuesday, Disney's board after a two-day retreat issued a statement giving its full support to Disney management, including Eisner and president Robert Iger.
Comcast Corp. is dropping
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