After a brief flirtation with a sale, signs continue to point toward Disney holding onto ABC.
As part of an internal review examining the company’s linear TV business, Disney executives have identified ABC, FX and the Disney Channel as linear networks with the most value to the company, the Wall Street Journal reported Friday. Such a finding would seem to make it unlikely that Disney would proceed with any potential sale of ABC.
Disney CEO Bob Iger said on CNBC this week that Disney’s evaluation of its linear channels would be based not only on economic factors but also strategic value. That too would make an ABC sale unlikely as the network is a key component of Disney’s sports rights packages, serving as the broadcast home of ESPN.
(To be clear, sports is not necessarily the primary consideration. Per the WSJ report, ABC, FX and the Disney Channel were identified as the most valuable networks because their entertainment content is popular on Disney streaming services.)
Iger sparked a months-long news cycle over the summer when he suggested in another CNBC interview that Disney’s linear channels — ESPN excluded — may not be “core” to the company and could potentially be sold.
Disney held discussions with some companies about a potential ABC sale, including Nexstar, and the entrepreneur Byron Allen submitted a $10 billion bid for ABC, National Geographic and FX. There is no indication that talks went beyond the exploratory stage.
Channels deemed “expendable” and “less critical” to Disney could be sold or shifted to A+E Networks, which Disney co-owns with Hearst. Alternatively, Disney is said to be examining whether it can cut enough costs — including by way of layoffs — to keep all of its networks.
(News from WSJ 11.10)
