© Reuters. Disney considers sale of ABC and its television stations to Nexstar
Benzinga – Early-stage talks have reportedly begun between the entertainment conglomerate The Walt Disney Co. (NYSE:) and the local television giant Nexstar Media Group Inc. (NASDAQ:NXST). Discussions center on the possible sale of Disney’s ABC network and its associated television stations.
What is happening
According to close sources, exploratory talks have begun between the two companies, as reported by Bloomberg. A specific valuation has not yet been established, and Nexstar’s participation depends on the right price.
The news drove Nexstar shares up 5.9%, marking the fourth consecutive session of gains. Disney shares also reacted positively, registering a 1.2% increase.
During a Bank of America (NYSE:) conference, Tom Carterformer president of Nexstar and current advisor to its CEO and board of directors, expressed Nexstar’s willingness to acquire assets from established media companies such as Disney.
However, Carter mentioned potential issues with the sale, especially considering the shared broadcasts between ESPN, Disney’s sports network, and ABC.
Carter called on Disney to provide clearer intentions. The CEO of Disney, Bob Igerhinted in July at the possibility of selling traditional television networks like ABC due to declining viewership, while streaming platforms like Disney+ and Hulu gain traction.
Nexstar, the largest owner of television stations in the United States, is headquartered in Irving, Texas. It owns or partners with 200 television stations spanning 116 markets and recently acquired majority ownership of the CW network.
Because it is important
The potential sale of ABC to Nexstar suggests a significant shift in Disney’s approach to its rapidly expanding digital platforms. The rise of streaming services like Disney+ and Hulu has been reshaping the media landscape, with traditional networks facing declining viewership. If the sale proceeds, it could mark a pivotal moment in the ongoing transition from traditional broadcasting to digital media.
Photo via Shutterstock.
You can also read: Disney about to be acquired by Apple? Speculations in 2023
Read the article also at Benzinga Spain
2023-09-15 08:08:43
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