Needham brokerage recommended in a Tuesday client note that Walt Disney shut down the ABC network and shift its content to streaming platforms, rather than selling it, to reduce regulatory risks and boost valuation.
According to Reuters, the brokerage argued that recent FCC interventions have made owning broadcast licenses too costly and unpredictable for Disney shareholders.
Disney’s decision to suspend Jimmy Kimmel Live! last week, following Kimmel’s comments on the assassination of conservative activist Charlie Kirk, intensified debates over free speech. FCC Chair Brendan Carr’s threat to investigate Kimmel’s remarks raised concerns about regulatory overreach, as federal law bars the FCC from revoking licenses over controversial speech. The suspension also sparked consumer backlash, with some Disney+ subscribers canceling their memberships.
Paul Verna, eMarketer’s vice president of content, noted that while the Kimmel controversy might prompt Disney CEO Bob Iger to reassess plans, a sale, spinoff, or shutdown of ABC is unlikely soon.
Disney’s decision to suspend Jimmy Kimmel Live! last week, following Kimmel’s comments on the assassination of conservative activist Charlie Kirk, intensified debates over free speech. FCC Chair Brendan Carr’s threat to investigate Kimmel’s remarks raised concerns about regulatory overreach, as federal law bars the FCC from revoking licenses over controversial speech. The suspension also sparked consumer backlash, with some Disney+ subscribers canceling their memberships.
ABC remains vital for Disney’s audience reach and sports rights negotiations, despite declining performance amid a broader industry shift to streaming. Nielsen data cited in the note showed ABC averaging just 2.4 million primetime viewers across broadcast and cable in summer 2025.
Disney announced Kimmel’s return to late-night television on Monday but did not respond to requests for comment on the Needham note.
The broader media landscape has seen heightened tensions, with late-night hosts and cable news figures often targeting President Donald Trump and his administration, prompting regulatory warnings and litigation. In July, Paramount canceled Stephen Colbert’s late-night show, denying any link to legal issues, though Colbert had called a $16 million settlement with Trump “a big fat bribe” days prior. In December, ABC settled a $15 million defamation lawsuit from Trump over anchor George Stephanopoulos’ comments on the E. Jean Carroll case.