Comcast today launched an unsolicited bid to buy Walt Disney for more than $54 billion in stock to join the largest US cable operator with one of the most storied US media companies known for its film studio and theme parks.
Comcast, which launched the surprise bid as Disney chief executive Mr Michael Eisner faces pressure from key dissident shareholders bent on ousting him, said the deal would combine the wealth of Disney's entertainment programming with Comcast's vast distribution network.
The deal is spearheaded by Comcast ceo Mr Brian Roberts, one of the media industry's savviest dealmakers, who engineered the $72 billion takeover of AT&T's cable assets in 2002.
"As you have expressed on several occasions, one of Disney's top priorities involves the aggressive pursuit of technological innovation that enhances how Disney's content is created and delivered," Mr Roberts said in a letter to Mr Eisner.
If successful, it would pit Comcast against Time Warner and News Corp as media conglomerates.
Shares of Disney, buffeted recently by failure to renew a key contract with animated filmmaker Pixar, jumped 16 per cent in premarket trading, topping the offer price, while Comcast shares fell 8 per cent.
The deal would combine Disney's film studio, ABC television network, ESPN sports network and theme parks with Comcast's 21 million cable subscribers.