SBD/5/Sports Media

DISNEY'S LINK WITH CAP CITIES/ABC COULD BE SLOW AT FIRST

     Disney shares "could be disappointing" in the first months
of its merger with Cap Cities/ABC, according to Linda Sandler of
the WALL STREET JOURNAL.  The $19B deal could be completed this
week and shares could begin trading early next week under the
symbol DIS.  While Disney's stock has been driven by performance
of animated films, the addition of a broadcast partner means
advertising fallout could drop income by $200M to $300M.  Sandler
writes, "Mergers are messy.  To pay for the broadcaster, Disney
will dilute its earnings by issuing as many as 155 million new
Disney shares."  Analyst David Londoner sees '96 profit coming in
lower than '95 and thinks Disney could "fall short of its 20%
growth target for '97 (WALL STREET JOURNAL, 2/5).
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ABC, Media, Walt Disney

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