It is easy to overstep when attempting a hostile merger, especially when conditions are interpreted to be more favourable than they are in reality. This was the case with Comcast and its unsolicited attempt to buy out Walt Disney Co. in 2004 in a move to create one of the largest media and entertainment companies in the world. The American telecom giant made an offer that valued Disney at $54 billion, which was quickly rejected by then-chief executive Michael Eisner – who was ousted by Disney shareholders shortly afterwards. Seeing the move as an indication of the shareholders’ willingness to agree to a merger, Comcast confidently pressed ahead with its takeover attempt. However, the shareholders proved just as reluctant as Eisner, and Comcast was forced to abandon its bid. The two companies have since clashed on a range of other M&A deals, with Comcast launching a counterbid to Disney’s plan to purchase Fox’s entertainment assets in 2017 and a looming showdown on the companies’ joint ownership of Hulu still developing. Kraft Heinz’s announcement of plans to buy out consumer goods titan Unilever in 2017 came as a shock to most of the business world, though leaks regarding Kraft Heinz’s intent had begun circulating since before talks between the companies began. The deal promised a paradigm shift in consumer goods and food products, with the Berkshire Hathaway-backed buyer valuing Unilever at an eyewatering $143 billion. However, the deal folded only two days after it was announced. Kraft Heinz stressed that the decision was made amicably, pointing to the leak of its plans as a key factor in the decision. In the end, however, many legal and business commentators speculated that a culture clash may have been to blame; Unilever was widely known as a pioneer in standards with a focus on sustainability, whereas Kraft Heinz was known as a cost-cutter. If company compatibility was the primary issue, then the collapse of the purchase can be better attributed to a lack of due diligence on the part of deal-makers. SPECIAL FEATURE 45 Comcast and Disney The Kraft Heinz Company and Unilever
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