The Walt Disney Company has responded to reports of the sale of ABC and other networks.
Media entrepreneur Byron Allen has submitted a substantial bid of $10 billion to acquire Walt Disney’s ABC television network, along with additional assets such as the FX and National Geographic cable channels, according to a spokesperson representing Allen.
This development follows exploratory discussions between Disney and regional TV station operator Nexstar Media about the possible sale of ABC, as reported by two sources familiar with the matter cited by Reuters.
These discussions have emerged in the wake of Disney CEO Bob Iger’s statement in July, where he indicated the company’s willingness to explore options regarding its traditional TV assets, which have faced challenges in recent years due to the growing dominance of streaming services.
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While a Disney spokesperson has confirmed the company’s openness to considering strategic options for its linear business, no final decision has been made regarding the sale of ABC or any other property at this time. Both Nexstar and Disney have yet to provide official comments on these reports. TWDC has responded:
The Walt Disney Company (NYSE: DIS) issued the following statement in response to media reports regarding our linear businesses.
“While we are open to considering a variety of strategic options for our linear businesses, at this time The Walt Disney Company has made no decision with respect to the divestiture of ABC or any other property and any report to that effect is unfounded.”
ABC encompasses a national TV network and eight regional stations, with affiliation agreements extending to approximately 240 local television stations, covering nearly all U.S. television households.
Notably, Disney’s former Chief Executive, Michael Eisner, had acquired Capital Cities/ABC for $19 billion back in 1995.
Nexstar, on the other hand, operates 200 owned or partner stations across 116 markets, reaching over two-thirds of the U.S. population. In addition to its local presence, Nexstar also oversees national TV networks such as CW and NewsNation and holds a market value of $5.25 billion.
These developments were initially covered by Bloomberg News.
