The media entrepreneur, television producer and comedian Byron Allen reportedly offered $10 billion to buy the ABC network, local stations and cable channels FX and National Geographic from Walt Disney Co. (DIS).
Key takeaways
- Media entrepreneur Byron Allen reportedly offered $10 billion to Walt Disney Co. for ABC and other television assets.
- Disney said it had not made a decision on the sale of any of the properties.
- Disney CEO Bob Iger said in July that the company would consider selling its linear television assets as streaming services draw viewers away from traditional TV channels and cable.
Bloomberg reported Thursday that Allen's offer was eight times earnings. before interest, taxes, depreciation and amortization (EBITDA) for the assets for the past year, with the $10 billion figure based on the assumption that the properties had generated $1.25 billion during of this period. The price may be higher or lower, depending on the final figure.
Allen is the founder and CEO of Entertainment Studios, also known as Allen Media Group, which owns 36 ABC, CBS, NBC and Fox television channels, as well as 12 HD networks, including The Weather Channel.
Disney would also be in talks with TV channel operator Nexstar Media Group over purchase of ABC.
The news came two months after Disney CEO Bob Iger. said the entertainment giant may consider selling its linear TV assets, as traditional over-the-air and cable lose viewers to streaming services.
However, in a statement Thursday , Disney said it had made “no decision” on divesting ABC or any other property, and “any reports to that effect are unfounded.”
Disney shares rose by around 1% at the start of the session on Friday, although they remain down for 2023.
Source: investopedia.com