Who wants to buy ABC? Disney CEO Bob Iger confirmed over the summer that his company’s linear channels were all on the table for the right price, and last week word began to circulate that a sit-down between Disney and Nexstar to discuss the sale of ABC had been held.
According to the New York Post, some bankers with knowledge of how such sales are conducted have expressed skepticism that Disney would be able to sell ABC in the current environment. The company clearly wants to pursue a streaming-forward entertainment strategy with its platforms Disney+ and Hulu, but bankers who spoke to the Post say that some have been too eager to run with the story of the company selling off linear channels.
“Everyone is way ahead of their skis on this story,” one banker with knowledge of Disney’s discussions with Nexstar. “They don’t know what is happening here. Disney taking a meeting doesn’t mean you’re ready to sell, it means you’re getting offers. This is something evolving over many weeks.”
Sources told the Post that no bankers have been hired to get the sale process started, and there are no sales books circulating. Nexstar may have made Disney an offer, but it’s not in a particularly good position to pay what Disney is probably going to ask for the network, those sources explain. Some insiders believe the price tag for ABC could be in the neighborhood of $7 to $8 billion. It could be hard for Disney to get offers like that at the moment, and bankers don’t think Iger would take a bad deal in the name of having done with the business.
Billionaire Byron Allen of Allen Media Group reportedly has offered Disney $10 billion in exchange for both ABC, FX, and National Geographic. Last week, Disney released a statement saying that all discussions were of a preliminary nature only and that no final decision had been made regarding a sale of ABC or any of its other linear networks.
The chatter regarding a sale of ABC has evolved as Disney’s plans for ESPN have come further into focus. The company wants to create a streaming version of ESPN that doesn’t require a cable subscription by 2026 or sooner and is looking to partner with tech companies like Amazon who have deep pockets and a wide distribution network to bring to the table.
The ESPN streamer would slot in alongside Disney+ and Hulu, which are likely to be combined in a single app once Disney purchases the portion of Hulu it does not currently own from Comcast. That would give Disney a highly alluring package of entertainment and sports via streaming to offer, and potentially allow it to leave its linear channels behind as cord-cutting eats into that revenue stream.
Discussions regarding what Disney will do with ABC and the rest of its traditional TV channels will continue but don’t expect a sale to happen in the next couple of weeks. Talks are still in preliminary stages, and some around the business world think the House of Mouse will have a hard time divesting itself of its channels at a fair price.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”