Disney (DIS) had become one of the most sensible, knowledgable and disciplined media companies in the world; and their stock price and success are showing it.
Having learned from their own past fiasco when they bought Infoseek for over $2 billion in the late 1990s; they eventually had to shut down almost the entire site in 2001.
Disney representatives have said that they're not unwilling to purchase an online company, but it would have to be the right price and make sense to them.
Steve Wadsworth, president of Walt Disney Internet Group, said:
"To pay what is, on the surface, significant amounts of money doesn't make sense for us. For others it may make sense. We are concerned about valuations." Wadsworth added later that Disney wouldn't go too far off of this strategy.
Some that are getting caught up in the hype are trying to say that Disney needs to buy up some social-networking sites, the idea being that they need to go beyond their community sites connected to ESPN and Disney Online's Toontown. I hope Disney doesn't give in to this pressure. It could be a big mistake.
They have a good strategy, are going great online, and are open to anything that will make sense for them and their shareholders. To buy up some pricey Internet properties doesn't really have any advantage for the company. Hopefully they'll stay the course and continue on the path they're on.
Comment Preview