Comcast Truce May Come of DisneyWar

Blame Comcast's (CMCSA - commentary - Cramer's Take) timing. Or blame Jim Stewart's timing. A year ago this week, Comcast launched a hostile bid to win Disney (DIS - commentary - Cramer's Take). Later this month, Jim Stewart's book DisneyWar, comes out, which correctly shreds Disney's management. If Comcast had waited a year, or if Stewart had been earlier, I bet Comcast would have won the fight.

Not to say that Disney hasn't done a good job at turning its company around; it has. And not to say that Comcast needed to have Disney at all costs to grow; it didn't. It is just that this book of Stewart's -- an old friend of mine, in full disclosure, who used to be a partner at my firm, Cramer Berkowitz -- shows that Disney's succession plans aren't working and that it makes as much sense as ever for distribution to combine with content.

In fact, after seeing all the chaos unfold in Stewart's book, if I were Michael Eisner I would call Steve Burke and say, "On second thought, let's make it work."

Why not?

Everyone loves the News Corp. (NWS - commentary - Cramer's Take) vertical integration. Just read any of the hundred fawning stories about how Rupert Murdoch will be able to own the world because he controls satellite.

It would be even better if Disney and Comcast merged. Heck, I would take a Viacom (VIA.B - commentary - Cramer's Take)-Comcast merger. The more free content Comcast can afford to give, the worse it is for everyone else.

Last year I met privately with the Comcast guys and mentioned that I thought they should hold open their tender offer until Stewart's book came out. I even wrote as much in these pages and in Philadelphia Magazine. Alas, Stewart's book was late -- justifiably, there's too much hot stuff from this Ovitz trial -- but I think this is one of those better-late-than-never situations. Except this time, Eisner can have it all: the real call on a successor, a total win-win combination and a sense that he waited and delivered a better price than a year ago.

Either way, Stewart's book is a catalyst for something to happen here; don't dismiss it as a way for Eisner to figure out Disney's long-term succession issues.

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At the time of publication, Cramer was long Comcast.

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