Disney may have found a buyer for ABC. Two months after Bob Iger expressed his intention to sell some of the entertainment giant's networks, it has been announced that they could soon have a new owner.
As Bloomberg reported, media mogul Bryon Allen offered $10 billion to take over ABC as well as FX and National Geographic. The news was confirmed by a spokesperson for Allen who said that the billionaire had already made a preliminary offer to Walt Disney Corporation.
Media mogul Byron Allen makes a $10 billion offer to Disney to acquire ABC, FX, National Geographic cable channels and local stations https://t.co/78KKr2OQM1
— Bloomberg (@business) September 15, 2023
According to the spokesperson, who preferred to remain anonymous, Allen based his offer "on the assumption that the properties generated $1.25 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) over the past 12 months." In addition, he explained, the offer may be higher or lower since it will be modified when the exact figure is known but always based "on a multiple of eight times EBITDA."
Nexstar also interested in ABC
It's not the first offer Walt Disney Corporation has received from ABC. On Thursday, Reuters reported that Nexstar Media Group Inc., the owner of The CW, Newsnation and The Hill, expressed interest in taking over Disney's television network for a "fair price." According to Bloomberg, Tom Carter, former president of Nexstar and current advisor to the company's board of directors, confirmed to shareholders at a Bank of America Securities conference the company's interest in acquiring parts that Disney has for sale.
However, he also urged caution as they still have some risks to assess: "If you were to buy the ABC complex, how would that work going forward? There’s a lot of questions that need to be answered there," he said. Along with this, Carter also explained that Nexstar Media Group, Inc., needed to know more about Disney's plans before making a final decision:
They’ve got to be a little bit clearer in their thinking. We can take direction, but we’re not necessarily out there leaning into any of this stuff without a clear path.
However, Walt Disney Corporation has not yet decided whether it is willing to sell any of its subsidiaries. Speaking to Bloomberg, a spokesperson for the entertainment giant said that, while the company was "open to considering strategic options for its linear business," it had not yet decided to divest from those networks.