Disney Sees Linear TV As "No-Growth Business"

Bob Iger’s vision for the future of Disney is quite clear by now. 

The entertainment side of Disney is to be led by its streaming platforms Disney+ and Hulu, as well as by the new ESPN standalone streaming service that Disney plans to offer by 2025 or 2026.

The Tramer reports that doesn't leave much room in the budget for Disney’s linear channels, which is why Bloomberg is reporting that the company has had preliminary talks with Nexstar, the largest owner of local broadcast stations in the country, regarding a sale of ABC. There hasn’t been a discussion of price yet, but Nexstar would reportedly be interested if the numbers line up.

Weather Channel owner Byron Allen of Allen Media Group has also thrown his hat into the ring. Another report from Bloomberg states that Allen has made a $10 billion bid for ABC, FX, and National Geographic. Allen was also an active bidder for BET when Paramount was considering selling that brand earlier this year, so it’s clear he’s got acquisition on the brain these days.

In a statement, Disney said that while it’s keeping its options open regarding its broadcast and cable channels, it has made “no decision with respect to the divestiture of ABC or any other property.”

Despite that statement, ABC audiences should think of a sale of the network by Disney as highly probable. When word of the possible sale of Disney-owned TV channels first arose in July, it was due to comments from Disney CEO Bob Iger, who said that linear TV was a “no-growth business” and that Disney’s TV assets were not necessarily “core” to the business.