Disney: We haven't made a decision on selling ABC

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https://www.latimes.com/entertainmen...ed%20statement.

“While we are open to considering a variety of strategic options for our linear businesses, at this time the Walt Disney Co. has made no decision with respect to the divestiture of ABC or any other property and any report to that effect is unfounded,” a Disney spokesperson said in an emailed statement.

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What could possibly happen if Disney sells ABC:

• Walt Disney Company: Disney's movies & TV productions (Walt Disney Pictures, 20th Century, ETC), Disney+, and Disney Channel, Disney Junior & Disney XD and Disney theme parks.
  
• American Broadcasting Company, Inc. (or new Capital Cities): spins off ABC, the ABC O&O stations, ESPN networks (full ownership as they gain the remaining 20% shares of ESPN from Hearst), Freeform, FX Networks, National Geographics networks (NatGeo retains co-ownership of those networks), Hulu and ESPN+.
  
• A&E Networks: all of Disney's 50% shares to A&E Networks is sold to Hearst in exchange for their 20% shares of ESPN.

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ABC News staffers ‘freaking’ out over reports Disney is in talks to sell the outlet

Alarm bells are going off at ABC News.

The Disney-owned newsroom was jolted on Thursday after a report suggested that the outlet could soon be expelled from the Magic Kingdom. Bloomberg’s Christopher Palmeri and Thomas Buckley reported that Disney has “held exploratory talks” about selling ABC to Nexstar Media Group. The duo also reported that media mogul Byron Allen has also spoken with Disney about a possible deal.

In conversations with more than a half-dozen people inside and around ABC News that CNN spoke to Thursday evening, it was made clear that a feeling of dread and trepidation is washing over the outlet as they face the unknown.

“Everyone is freaking the f**k out,” one ABC News staffer bluntly told me about the state of affairs inside the network.

“It’s all anyone at work is talking about,” added another.

Indeed, mergers and acquisitions always inspire feelings of anxiousness as staffers wonder what a new corporate parent might mean for them. Will a new parent move to install its own leadership? Cut costs? Make other changes?

With Nexstar already owning NewsNation, the little-watched cable news channel that embraces bothsidesism and was happy to host a town hall with notorious anti-vaccine conspiracy theorist Robert F. Kennedy Jr. earlier this year, what would that mean for the future of ABC News and its editorial direction? Would Nexstar move to meld the two and supercharge its cable news operation with the more robust resources of ABC News?

Staffers who CNN spoke to, who acknowledged that a divorce with Disney seemed inevitable after Bob Iger’s infamous comments earlier this summer that the television asset “may not be core” to the company, were apprehensive about how quickly a potential sale appeared to be progressing.

The ABC News’ers suggested that they are frustrated that they remain in the dark about the future of their company. Instead of hearing directly from Disney leadership, they’re instead reading in the press about what the House of Mouse plans to potentially do with the company.

That might soon change. CNN was told Iger — likely recognizing the frustration radiating out of the news division — is expected to make a visit to his ABC News troops next week in New York City. But, for obvious reasons, he is likely limited on what he can say about the future of the outlet.

Whether a deal to offload ABC and Disney’s linear stations is ultimately in the cards remains to be seen. A deal with Nexstar, the nation’s largest owner of television stations and majority owner of The CW network, could also come with some regulatory complications, potentially forcing some stations to be divested. A potential deal would also raise questions for ESPN and Disney’s simulcast of sporting events on the broad terrestrial network.

Nexstar declined to comment on Thursday when I reached out. And Bloomberg described the talks as “preliminary.”

Iger has also talked up the importance of ABC News — as recently as July, when he tried to clean up his mess after speaking to CNBC at Sun Valley. “I’m ridiculously passionate about news,” Iger told senior company leaders. “It’s important to this company. We need to figure out how it makes the transition into streaming. And I happen to believe we will endure. It’s too good, it’s too important, and it’s really fun.”

Disney, for its part, poured cold water Thursday evening on any notion that a deal has been inked “at this time.” But the statement issued by the media giant once again affirmed that it is “open to considering a variety of strategic options for our linear businesses.” That’s a big hint of what’s to come.

As one television executive put it, “Once, they were Iger’s jewel in the crown. Their $20 million+ anchors were trotted out for board meetings and glitzy dinners in NYC. Now, they’re on the chopping block.”

But, the executive added, “Iger is unsentimental and cold-blooded. He will do what is best and necessary for Disney. He will not hesitate to cut off well-paid anchor friends, cast out beloved networks, or sell the jewels in the crown.”

[stevea]

Freeform, among many other channels, isn't included in the deal which would return Disney-owned channels back to Spectrum, according to the Sitcoms Online blog. This would lead to speculation that Disney might ditch them.

Also, the news that Nexstar wants to buy ABC brings up lots of interesting questions about network affiliation. Here, Nexstar stations are affiliated with Fox and CBS. Normally, owned and operated stations are affiliated with the owner. I wonder if it might mean some swaps are in the offing in some or many cities, if that deal eventually happens.

[Dude111]

Maybe they would get better if they sold them!!!

[Edward216]

I don't think Disney will sell ABC, and I'll be very surprised if they do.

Ed.

[merlinjones]

Disney should retain the ABC Films library (includes the Selznick International titles) and other ABC owned entertainment programming.

The rest has needed to go since the merger with Cap Cities. It brought the greater Hollywood, advertising, media, news and political cultures to Walt's Disney which changed it forever and not for the better.

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Originally Posted by stevea

Freeform, among many other channels, isn't included in the deal which would return Disney-owned channels back to Spectrum, according to the Sitcoms Online blog. This would lead to speculation that Disney might ditch them.

Also, the news that Nexstar wants to buy ABC brings up lots of interesting questions about network affiliation. Here, Nexstar stations are affiliated with Fox and CBS. Normally, owned and operated stations are affiliated with the owner. I wonder if it might mean some swaps are in the offing in some or many cities, if that deal eventually happens.

Disney is considering selling Freeform and National Geographic to A&E

By Luke Bouma

November 10, 2023

Ever since back in July 2023, in an interview with CNBC, Disney CEO Bob Iger left an option open to sell some of its TV assets, including ESPN, ABC, and more. Now we have a new report that Disney may have a buyer in mind for some of its networks, including Freeform and National Geographic.

According to the Wall Street Journal, Disney has completed its review of its cable networks and has decided which ones it wants to sell. According to this report, three networks are seen as the most profitable to Disney, including ABC, FX, and the Disney Channel. These channels produce a lot of content not just for cable TV but also for its streaming service, Disney+.

According to this report, Disney is considering selling some of its smaller networks, including Freeform and National Geographic to A+E Network. This deal will let Disney keep partial ownership of these networks as A+E Networks is already a joint effort between Disney and Hearst.

This sale would let Disney break free of the high costs of these networks and remove them from their books. At the same time, keeping the door open for any potential profits from these networks. This is very similar to what AT&T did by spinning off DIRECTV but still keeping a majority ownership.

A+E Networks is a 50/50 split between Disney and Hearst Communications. In the past A+E Networks was also owned by NBCUniversal, but they sold their share to Dinsey and Hearst in July of 2012. Hearst and Disney also share ownership of ESPN, with Hearst being a minority owner.

Excluding ESPN, Disney saw TV network revenue drop 9.1% in the 4th quarter of 2023. Cutting some unprofitable networks like Freeform could help Disney reduce these losses on its books.

No official announcement has been made for this possible sale.