Disney, ABC and ESPN status

[4th&long]

https://nypost.com/2023/09/14/disney-in ... le-report/

>> Disney has quietly held early talks to sell its ABC network to local TV station owner Nexstar Media as the Bob Iger-led company looks to unload the property, The Post has learned.

The entertainment giant, whose stock has traded at nine-year lows, has said it wants to get out of the traditional TV business by ditching ABC and its affiliates.

A source with knowledge said it’s not just Nexstar, who has been talking to the Mouse House. <<

https://deadline.com/2023/09/disney-abc ... 235546028/

>> “You’re seeing ESPN simulcast a large portion of their sports telecasts on ABC. If you were to buy the ABC complex, how would that work going forward? There are a lot of questions that need to be answered.” <<

[johnnyangryfuzzball]

This is an absurd article. Of all the companies to potentially buy ABC, Nexstar is the one that absolutely, possibly, could not legally do it.

Nexstar already owns stations in every one of the ABC Owned Television Stations' markets. NY, Chicago, LA, Houston, Philly, San Francisco, even Fresno. They would run into the exact same logistical problems that Disney itself did when it bought 21st Century Fox: the Fox network had to be left behind, including all the actual stations it owned. (Ironically, Fox had more O&O stations that it could have sold to Disney in the sale that weren't in ABC's existing O&O footprint.)

They've relied on trickery before to get around the law, but that's mostly been in smaller markets less likely to draw scrutiny. The FCC would almost certainly never allow Nexstar to consolidate even further.

Plus there's a serious question as to how Nexstar keeps coming up with the money to keep buying more and more stations. They have to be ridiculously overleveraged at this point.

If Disney is going to unload assets to Nexstar, it'd likely be cable assets that aren't subject to FCC scrutiny. Given the beatdown that Disney just took in that recent battle with Spectrum, that might be the safer path. The A&E/ESPN cluster is already minority owned by Hearst and operates separate from the rest of the company. You have the 21st Century FX assets, like Freeform and FX. And of course, the core Disney brand itself.

[4th&long]

This is an absurd article. Of all the companies to potentially buy ABC, Nexstar is the one that absolutely, possibly, could not legally do it.

Nexstar already owns stations in every one of the ABC Owned Television Stations' markets. NY, Chicago, LA, Houston, Philly, San Francisco, even Fresno. They would run into the exact same logistical problems that Disney itself did when it bought 21st Century Fox: the Fox network had to be left behind, including all the actual stations it owned. (Ironically, Fox had more O&O stations that it could have sold to Disney in the sale that weren't in ABC's existing O&O footprint.)

They've relied on trickery before to get around the law, but that's mostly been in smaller markets less likely to draw scrutiny. The FCC would almost certainly never allow Nexstar to consolidate even further.

Plus there's a serious question as to how Nexstar keeps coming up with the money to keep buying more and more stations. They have to be ridiculously overleveraged at this point.

If Disney is going to unload assets to Nexstar, it'd likely be cable assets that aren't subject to FCC scrutiny. Given the beatdown that Disney just took in that recent battle with Spectrum, that might be the safer path. The A&E/ESPN cluster is already minority owned by Hearst and operates separate from the rest of the company. You have the 21st Century FX assets, like Freeform and FX. And of course, the core Disney brand itself.

Regardless talks are occuring, its all over the news...

https://www.sportsmediawatch.com/2023/0 ... ron-allen/

>> The smoke surrounding a potential sale of ABC by Disney continues to rise.

Bloomberg reported Thursday that Disney has held preliminary talks with both Nexstar and media magnate Byron Allen about a potential sale of ABC and Disney’s owned-and-operated ABC affiliates. Nexstar, which purchased broadcast “netlet” The CW less than a year ago, is the nation’s largest station owner. <<

Whether its Nexstar or someone else... get ready.

More reporting:
https://www.sportspromedia.com/news/dis ... ott=uLN50g

>> No valuation has been discussed, although some observers believe ABC and its eight directly owned stations could be worth US$4 billion.<<

[4th&long]

>> Disney India Sale Talks Draw Firms Including Reliance<<

https://finance.yahoo.com/news/disney-i ... 49690.html

>> The US entertainment giant has discussed a range of options with would-be suitors, from a deal for the entire Disney Star business to a piecemeal transaction that may include some combination of its assets including sports rights and regional streaming service Disney+ Hotstar, the people said.

Disney has been weighing strategic options for the business including an outright sale or setting up a joint venture, Bloomberg News reported in July after the Indian unit lost its streaming rights to the Indian Premier League cricket tournament to Viacom18 Media Pvt., a tie-up between Paramount Global and Reliance. <<

Even internationally - sports rights driving viewership. Disney+ Hotstar (India) is losing subscriptions and they are likely looking to get out as the fees are minuscule for now.

ALSO:

https://www.cnbc.com/2023/09/19/disney- ... iness.html

>> Disney said it will nearly double its planned investment in the parks and cruises business.

The company said in a securities filing on Tuesday it will nearly double its planned investment to $60 billion over the course of 10 years.

While the company is grappling with the changing media and entertainment landscape – and trying to make its streaming business profitable while considering sales of its traditional TV networks – the theme parks, experiences and products division has been a bright spot.

Still the domestic parks, particularly Walt Disney World in Florida, has seen a slowdown in attendance and hotel room purchases. Instead, the segment’s strength has come from its international parks. During the third quarter the division saw a 13% increase in revenue to $8.3 billion. <<

They need cash for these investments. This sell off will impact ABC/ESPN at some point - its a matter of when.

[4th&long]

https://www.sportsmediawatch.com/2023/1 ... -unlikely/

>> 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. <<

I think alot of this is sale or no sale is based on activist stk holders pressuring Disney.