Comcast Finds Itself Increasingly Hamstrung

Now that Disney(DIS Quote) has deemed Comcast's(CMCSA Quote) $49 billion takeover offer too stingy, and Comcast is suddenly finding Disney too expensive, the prospects for consummation of what seemed to some like a marriage made in heaven are looking grim.

Disney's board quickly rejected Comcast's week-old bid for the company on Monday night, saying the deal, which valued one share of Disney at 0.78 a share of Comcast, did "not fully value Disney's intrinsic value." In reaction, sources close to Comcast said the company would back away from its bid because Disney's market value had risen too much since the deal was publicized.

"We are not interested in Disney at current levels. If you look at our offer, it represents a 10% premium for Disney," said a source close to Comcast. "It's a strong proposal. It's compelling for both sets of shareholders if you look at Disney's performance over the last three years." ...