Editor’s note: Business Reform Magazine is your exclusive source for real biblical answers to real business problems.
The unexpected takeover-offer by Comcast to buy Disney for $48 billion in stock has shaken the public and the entertainment industry. If Comcast is successful in its hostile takeover, results could be disastrous for the new combined company.
Many mega mergers even with best efforts and planning, often do not work well. Look no further than struggling AOL-Time Warner. You’ll see the havoc that results when two companies with different cultures come together.
Amos 3:3 says, “How can two walk together if not in agreement?”, and the company culture of each business is not in agreement.
Comcast, the cable giant comes from a regulated industry, enjoying a monopoly in most of its markets. Comcast comes with the ability to run a hardware network and to cut costs, e.g. its integration of AT&T broadband. But Disney requires creativity and managing people. In Deuteronomy, it says, “Do not plow with an ox and a donkey harnessed together.” Comcast management will likely reduce the very creativity that Disney requires.
The first sign of trouble rose in the market. Comcast stock dropped with the announcement of its bid to swallow Disney up. Tourists found the merger a bad idea, worrying over changes in theme parks and loss of the name Disney. “Comcast World” did not set well with them.
Theme parks and other facets of Disney may need to be sold off to pay for the whopping bid, and debt, which, altogether, amounted to $63 billion; gutting the very synergy that has built the Disney franchise.
Disney problems will not be solved by merging with Comcast, but rather by returning to its once-fabled creativity. If Comcast or a similar merger is consummated, look for another value-destroying mega deal to fail.
Steve Marr is the former CEO of the fourth largest import-export firm in the U.S., a company which facilitated international trade for many of the largest companies in America. Currently, Steve consults with with businesses and ministries utilizing ancient Biblical principles for success in today’s marketplace. Click here to contact Steve, or visit his website at www.businessproverbs.com.