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Eisner's position at Disney bolstered by Comcast's pullout

The withdrawal of Comcast Corp's takeover bid removes a major source of distraction for The Walt Disney Co and improves 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 on Tuesday that helped seal Comcast's decision to withdraw.

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 US$54 billion, Disney's board dismissed the bid as too low.

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 on 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.

One of the biggest questions remaining is whether Eisner will remain past the expiration of his contract in 2006. Disney's board met in executive session, without Disney management, this week to discuss possible successors for Eisner and other top executives.
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