It seems that if Disney is selling ABC they have two interested parties. First, Nexstar was allegedly talking to them about buying the network, and now Byron Allen has reportedly offered Disney $10 billion for ABC, local stations, FX and Nation Geographic cable channels.
This information comes from Bloomberg as did the potential sale to Nexstar yesterday. Nexstar was reportedly in exploratory talks with Disney over buying ABC.
According to their source, the offer is simply a preliminary one and is dependent on the linear channels generating $1.25 billion in earnings:
“The offer is preliminary and could change, said the person, who asked to not be identified. Allen is basing his offer on the assumption that the properties generated $1.25 billion in earnings before interest, taxes, depreciation and amortization over the past 12 months. If that number is lower or higher, Allen would change his proposed price, which is based on a multiple of eight times EBITDA.“
Allen is ready to go all in, even getting money from outside sources like banks and equity firms to finance it. To avoid any conflict, he is seemingly willing to sell other channels he owns to acquire these.
After the news broke yesterday about a potential sale to Nexstar Disney did put out a statement indicating that they are open to considering options but have made no decision to sell:
“Statement From The Walt Disney Company
BURBANK, Calif., September 14, 2023 – The Walt Disney Company (NYSE: DIS) issued the following statement in response to media reports regarding our linear businesses.
“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.”
BURBANK, Calif., September 14, 2023 – The Walt Disney Company (NYSE: DIS) issued the following statement in response to media reports regarding our linear businesses.
“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.”
It seems like the “options” are rolling in ahead of the end of the Walt Disney Company’s fiscal year. Given the situation we suspect Disney is in, they are likely going to have to do something and the sale of linear networks has been rumored for a while now. The question now is if they will sell and if so to who?
What do you think? Comment and let us know!
Source: Bloomberg
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