Disney receives new multi-billion dollar offer to sell entertainment

With rumors swirling about Disney’s finances, will Disney sell off some of its entertainment offerings with this huge offer?

Rumors

Disney is reportedly considering getting out of the traditional television business. According to several national media outlets, the company quietly held talks with Nexstar Media in regard to selling ABC and its affiliates.

Disney’s ABC is comprised of a national television network with shows like “Dancing with the Stars” and “The Bachelorette”. It also has 8 regional stations and about 240 local TV stations across the country.

Yesterday, we shared HERE that The Walt Disney Company (NYSE: DIS) issued the following statement in response to these rumors:

“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.”

Stock Prices

Last month, we reported HERE that The Walt Disney Company’s stock reached not only a year low, but it’s also the lowest stock valuation since 2014! You heard that right! At that time, the DIS stock is listed at $82.75 with a low price of $82.73. Today, 9/15/23, the current stock price is $85.39!

If The Walt Disney Company comes to an agreement to sell off a portion of or all of its television stations, it would give them a boost of capital, which will at least temporarily add cash to spend somewhere else. It also removes the stress of operating traditional television and streaming. 

New Offer

Today, it was announced that media mogul Byron Allen has placed a preliminary offer. According to Bloomberg, Allen based the offer on the assumption that these channels generated $1.25 billion gross revenue over the past 12 months.

Allen’s current offer to purchase ABC, FX, National Geographic, and local stations is $10 billion dollars! However, if past revenue is different than anticipated, the offer will be adjusted accordingly.

Byron Allen has submitted an offer to purchase ABC, FX, National Geographic, and local stations for $10 billion dollars!

What do you think about this offer and Disney considering selling its television stations? Please let us know in the comments below and share this post with a friend who may be interested in this news.

Source: Bloomberg.com