Disney’s chief executive officer Bob Iger has denied the rumors that the company is planning to sell its TV business, including the ABC network and other cable channels. Iger said that the company is open to considering various strategic options for its linear TV assets, but has not made any decision to divest them.
Rumors of TV Sale Sparked Stock Rally
The rumors of Disney’s potential TV sale were first reported by Bloomberg on September 20, 2023, citing unnamed sources familiar with the matter. According to the report, Disney was in talks with Nextstar Media Group, a local TV station owner, to sell some of its broadcast and cable channels, such as ABC, Freeform, FX, and National Geographic. The report also claimed that Disney was looking to focus more on its streaming services, such as Disney+, Hulu, and ESPN+.
The news of the possible TV sale boosted Disney’s stock price, which rose by 4.5% on September 20, 2023. Nextstar’s shares also jumped by 13.5% on the same day. However, both stocks fell back on September 21 and 22, after Disney issued a statement denying the report.
Disney’s Statement on TV Business
In a statement released on September 21, 2023, Disney said that it has not made any decision to sell its TV business, and that any report to that effect is unfounded. The statement read:
“While we are open to considering a variety of strategic options for our linear businesses, at this time The Walt Disney Company has made no decision with respect to the divestiture of ABC or any other property and any report to that effect is unfounded.”
The statement also said that Disney’s TV business is “very important” for the company, and that it is “mindful about the future” of the industry. Disney’s TV business includes the ABC network, which is the top-rated network in both adults 18-49 and average total viewers for the summer primetime season, as well as several cable channels that produce original content and news.
Challenges and Opportunities for Disney’s TV Business
Disney’s TV business faces several challenges, such as the decline of cable subscribers, the rise of streaming competitors, and the disputes with pay-TV providers over pricing and carriage. Disney recently resolved a conflict with Charter Communications, one of the largest cable operators in the US, over the distribution of its channels, including ESPN, Disney Channel, and ABC. The dispute threatened to remove Disney’s channels from Charter’s bundle, which could have hurt both companies’ revenues and customer satisfaction.
However, Disney’s TV business also has opportunities to grow and adapt to the changing media landscape. Disney has invested heavily in its streaming services, which have attracted millions of subscribers and generated billions of dollars in revenue. Disney also has a strong portfolio of content, which includes popular franchises such as Marvel, Star Wars, Pixar, and Disney Animation. Disney can leverage its content to create synergies across its platforms, such as cross-promoting its shows and movies, and offering exclusive access and benefits to its loyal fans.
Disney’s TV business is not likely to disappear anytime soon, but it may undergo some changes and transformations in the future. Disney’s CEO Bob Iger has indicated that the company is open to exploring different options for its linear TV assets, but has not confirmed or denied any specific plans or deals. Disney’s TV business remains a valuable and important part of the company, but it also faces some challenges and uncertainties in the evolving media industry.
