Recently, Disney was offered $10 Billion for ABC and other Disney television networks by media entrepreneur Byron Allen. Allen is perhaps best known for co-founding the Allen Media Group, aka Entertainment Studios, which is the current owner of The Weather Channel and produces multiple court television series. They are also partnered with the Sinclair Broadcast Group and operate the regional sports network Bally Sports.
Not long after he announced his bid for the Disney-owned television networks, he stated that he had access to plenty of capital.
“Capital’s not an issue. I have access to plenty of capital. There’s trillions of dollars out there looking for a safe place to invest and get it back with a return.“
Despite this claim, it should be noted that Entertainment Studios is only $1 Billion in total assets. He would need to acquire said capital from outside investments.
Despite the tempting offer of $10 Billion, it appears that Disney CEO Bob Iger may not yet be ready to sell off their television division. Allen believes that Iger “is not ready” to enter a formal process despite the company’s clear focus on ‘direct to consumer.’ The idea of selling off that large of a chunk of the company is something that hasn’t happened in the company’s 100 years of existence. It may be a difficult thing to process.
While Disney is definitely in an awkward financial situation regarding their tanking stock, low box office revenue, low theme park attendance, promising to invest $60 Billion in the theme parks, and being forced to buy out the remainder of Hulu from Comcast, Iger may be waiting for a more promising deal.
Not long ago, former Disney executives Kevin Mayer and Tom Staggs, both of whom were previously up for the role of Disney CEO and currently run Candle Media, were apparently brought in to assist Iger with some kind of “sale”. While some initially believed it to be Disney itself, it may be their television networks instead.
What do you think? Will Disney be willing to sacrifice that much of the company in a sale to potentially keep there company afloat? Would such a sale affect their stock prices? Let us know.
Sources: Deadline, WDWNT
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