Disney is exploring the possibility of selling its ABC network, which includes a national television network and eight local stations. According to sources familiar with the matter, Disney is negotiating with Nexstar Media, the owner of a local television station worth $5.25 billion. These discussions are in the early stages and no deal is imminent.
Dtvisney is also reaching out to other potential buyers, investment banks and private equity firms to gauge the interest and value of its ABC assets. The media giant, whose shares are trading at their lowest since 2014, is looking to exit the traditional TV business and focus on its streaming services, such as Disney+, Hulu and ESPN+. In July, Disney CEO Bob Iger suggested the company might sell some of its legacy television assets, which have lost viewers and advertisers to online platforms. However, he later clarified his position, emphasizing his appreciation for Disney TV Group and ABC News.
Currently, Disney is reviewing its portfolio and exploring the possibility of combining ABC with some of its other television networks, such as Disney Network and FX. This strategy can not only increase the selling price but also make it more attractive to potential buyers looking for a variety of TV products.
ABC, one of the oldest and largest television networks in the United States, offers popular shows like "Dancing with the Stars" and "The Bachelorette." It is affiliated with approximately 240 local television stations, reaching virtually every American television household. Disney acquired ABC in 1995 for $19 billion from Capital Cities/ABC.
On the other hand, Nexstar, the largest owner of local television stations in the United States, operates 200 owned or syndicated channels in 116 markets, serving more than two-thirds of the US population. In addition, it also manages national television networks such as CW and News Nation. A potential deal with Disney would significantly expand Nexstar's reach and content portfolio.
However, it should be noted that such an agreement would likely face legal challenges for Disney. The Federal Communications Commission has strict regulations regarding media ownership and market concentration. Notably, it recently blocked a deal between Standard General and Tegna, two media companies, due to antitrust concerns.
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