Comcast drops $60bn Disney bid

AMERICA'S cable TV company, Comcast, is scrapping its $60bn bid for Walt Disney. The Philadelphia-based cable group company said it has become clear that Disney's management and board have 'no interest' in putting the companies together.

Comcast's shares surged in pre-market-trading to $31.55 after closing at $29.97 on Tuesday. Disney said from the start that it had no interest in being taken over by its rival.

While Comcast's decision is no surprise, few probably expected on day one that Comcast would walk away because it has a reputation for following through on its takeover attempts.

Comcast wanted to expand its content capabilities as a way of competing more directly against rivals such as Time Warner, the world's largest media company. Time Warner has represented what Comcast hopes to become as a business model. Time Warner has a major content capability through its film, television and publishing holdings as well as a huge cable operation.

'We have always been disciplined in our approach to acquisitions,' said Comcast president and chief executive officee Brian Roberts. 'Being disciplined means knowing when it is time to walk away. That time is now.'

The company added that it is again in a position to move forward with its previously disclosed $1bn stock repurchase programme.

Comcast announced it was dropping the Disney bid just after reporting that it earned $65m, or 3 cents a share, in the first quarter, compared with a loss of $297m, or 13 cents a share, in the year-earlier quarter.