Disney Fielding Interest In ABC And Other Linear TV Assets From Byron Allen And Nexstar; Media Giant

Source: Deadline

Disney Fielding Interest In ABC And Other Linear TV Assets From Byron Allen And Nexstar; Media Giant Calls Reports Of Sale Talks “Unfounded,” But Will Consider “Strategic Options” – Update

By Dade Hayes, Jill Goldsmith
September 15, 2023 7:10am

UPDATED with details of Byron Allen bid. As Deadline reported Thursday, Byron Allen is interested in Disney’s linear TV assets, and overnight that interest progressed to a formal offer.

Sources familiar with the discussions said Allen late Thursday offered $10 billion for ABC, Disney’s eight local TV stations, FX and the National Geographic Channel. Bloomberg and Reuters are among the media outlets reporting the official offer.

The offer is pegged at eight times EBITDA, but it uses estimated financials and could be adjusted, sources said. Strategically, the notion of removing FX and Nat Geo — both of which are embedded within Disney streaming outlets Hulu and Disney+ — from Disney control raises a number of questions. But the Charter carriage renewal earlier this week, which left networks like Freeform and FXX without distribution on the No. 2 pay-TV service in the U.S., indicate the climate change in the media business.

Allen joins Nexstar in being interested in Disney’s linear TV assets, which CEO Bob Iger said in July “may not be core” to the company. That comment set off a wave of interest from a range of parties, including private equity firms.

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Read more: https://deadline.com/2023/09/disney-says-abc-station-sale-talks-unfounded-but-keeps-strategic-options-open-1235547332/