[star]The American Mind[star]

February 11, 2004

Comcast Wants to Grow Ears

This smells of AOL-TimeWarner. At the time, I thought it was some business innovation of historic proportions. What was I smoking? For the most part Comcast is a hardware company while Disney is a software company. They have two different cores. How does having lots of cable help Disney make more successful movies like Finding Nemo and Miracle? What X factor should make this combination work? If Comcast wanted exclusive access to Disney content they could negotiate individual contracts. What kind of economy of scale do they hope to achieve? If I was a gambling man I'd short the combo if they actually merge.

For more reading, check out Professor Bainbridge's take on the situation.

"Comcast proposes to buy Walt Disney" [via Wizbang]

Posted by Sean Hackbarth in Economics at 02:45 PM | Comments (2)