Walt Disney Co. Explores Sale Of ABC Network And Stations

(RTTNews) - The Walt Disney Company has initiated discussions about potentially selling its ABC network and associated TV stations. While still in early stages, these talks have not yet produced a definitive valuation for these assets, and the details have been kept confidential.

Local broadcaster Nexstar Media Group Inc. has expressed interest in acquiring Disney's ABC network and its affiliated TV stations, provided the price aligns with their strategic goals. Media mogul Byron Allen, known for his TV outlet ownership, has also engaged in discussions with Disney regarding a potential acquisition of these assets.

Tom Carter, formerly President of Nexstar and now an advisor, addressed investors at a recent conference, highlighting Nexstar's interest in acquiring assets from media companies like Disney looking to restructure. He indicated that Nexstar could potentially acquire ABC with minimal divestitures required to meet broadcast station ownership limits.

However, complications arise from the fact that ESPN, Disney's sports network, shares many telecasts with ABC, posing questions about their future integration. Carter emphasized the need for Disney to provide a clearer roadmap for the transaction.

These discussions take place against the backdrop of Disney's strategic shift, prompted by changing consumer preferences. CEO Bob Iger previously mentioned considering divestments of traditional TV networks like ABC due to declining viewership in favor of streaming services like Disney+ and Hulu.

Nexstar Media Group Inc., headquartered in Texas, owns or partners with 200 television stations across 116 markets, many affiliated with major networks. The acquisition of ABC and its stations may face scrutiny from other network owners.

Bloomberg Intelligence estimates that ABC and its eight TV stations could bring in around $4 billion in revenue, approximately seven times their current earnings before interest, taxes, depreciation, and amortization (EBITDA), which stands at roughly $575 million, according to analyst Geetha Ranganathan.

In conclusion, these early-stage discussions between Disney and potential buyers like Nexstar and Byron Allen mark a significant development in the evolving media landscape, shaped by changing viewer preferences and industry dynamics. The future of ABC and its affiliated stations remains uncertain, with significant implications for all parties involved.