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Comcast CEO: The Most Disappointing Part Of Losing Fox Is What Came Next

Comcast CEO: The Most Disappointing Part Of Losing Fox Is What Came Next

A media bidding war pitted Comcast Corporation (NASDAQ: CMCSA) against Walt Disney Co (NYSE: DIS), with the winner acquiring most of Twenty-First Century Fix Inc (NASDAQ: FOXA)'s assets. Disney ultimately emerged with a superior bid, but Comcast CEO Brian Roberts said the aftermath was the bigger disappointment.

What Happened

Comcast looked at Fox's media and entertainment assets not with a desire to fundamentally change the entire business structure, but rather because they were put up for sale by Robert Murdoch, Roberts told CNBC's Jim Cramer in an interview.

Comcast initially viewed the assets as "undervalued," so the company made an offer — only to be outbid by Disney, the CEO said. 

Once the bidding process came to an end, some believed Comcast's interest in the first place was a sign the telecom "didn't love our core business," Roberts said. 

Why It's Important

Comcast's core business is "having a renaissance" as it pivots from a traditional cable and entertainment company to better focus on innovation and the right amount of content and connectivity, the executive said. For example, Comcast came to the conclusion that Xfinity customers don't necessarily want a full video package, but do want high-speed internet transmission.

The result was the best broadband sales in 10 years, a particularly encouraging accomplishment for a "20-year-old product," Roberts said. 

What's Next

Ten percent of Comcast customers today are "power users" who use three times more bandwidth than the average person, Roberts said. The company continues to innovate today, and in a few years, the majority of customers will be consuming this level of bandwith, he said. 

Related Links:

Imperial Capital Takes Neutral Stance On Disney, Tackles Pros, Cons Of A Twenty-First Century Fox Deal

5 Reasons Why Comcast Is Fighting Disney For Fox

Posted-In: Brian Roberts CNBC entertainment Jim Cramer tvMedia Best of Benzinga


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