Eisner's place at Disney seen bolstered

LOS ANGELES -- The withdrawal of Comcast Corp.'s takeover bid removes a major source of distraction for Walt Disney Co. and strengthens the position of embattled chief executive Michael Eisner.

Despite months of criticism from two former Disney board members, echoed by Comcast executives when they launched their bid, Eisner and his senior managers remain firmly in control of the company -- evidenced by a strong statement of support from Disney's board late Tuesday that helped seal Comcast's decision to withdraw.

"This is probably one of the better days of the year for Mr. Eisner," Harold Vogel of Vogel Capital Management said yesterday. "He undoubtedly must feel more secure."

Disney's board had remained steadfast in its rejection of Comcast's bid, saying the media giant was better off on its own.

Within days of Comcast's Feb. 11 offer, initially valued at about $54 billion, Disney's board dismissed the bid as too low.

Disney stock had risen since, buoyed by the expectation Comcast would sweeten its bid. The shares fell slightly yesterday on the news of Comcast's withdrawal, ending 23 cents lower at $23.95.

With Comcast out of the picture, Disney's challenge is to deliver the promised 40 percent growth in earnings per share this year and show meaningful progress in fixing problems in its animation unit and ABC Television network, analysts said.

"I think we're returning now to questions of fundamentals," said Tom Wolzien, an analyst with Sanford C. Bernstein & Co.

Disney reports second-quarter earnings May 12. Analysts expect to see continued strong results from its theme parks and cable television channels, such as ESPN.

Improvements in those areas are expected to be strong enough to make up for weakness at ABC and Disney's film studio, which has stumbled recently with disappointments such as "The Alamo" and "Home on the Range." Last week, Disney reshuffled ABC management in a bid to improve ratings.