Media entrepreneur, television producer, and comedian Byron Allen reportedly has offered $10 billion to purchase the Walt Disney Co.’s (DIS) ABC network, local stations, and cable channels FX and National Geographic.
- Media entrepreneur Byron Allen reportedly offered $10 billion to Walt Disney Co. for ABC and other TV assets.
- Disney said it hasn't made a decision about selling any of the properties.
- Disney CEO Bob Iger said in July that the company would consider selling its linear TV assets as streaming services pull viewers away from traditional TV and cable channels.
Bloomberg reported Thursday that Allen’s offer was eight times earnings before interest, taxes, depreciation, and amortization (EBITDA) for the assets in the past year, with the $10 billion figure based on the assumption that the properties had generated $1.25 billion over that time. The price could be higher or lower, depending on that final figure.
Allen is the founder and CEO of Entertainment Studios, also known as Allen Media Group, which owns 36 ABC, CBS, NBC, and Fox TV stations, and 12 HD networks, including The Weather Channel.
Disney is also said to be in talks with TV station operator Nexstar Media Group about purchasing ABC.
The news came two months after Disney CEO Bob Iger said the entertainment giant might consider selling off its linear TV assets, as traditional over-the-air broadcasting and cable lose viewers to streaming services.
However, in a statement Thursday, Disney said that it has made "no decision" on the divesture of ABC or any other property, and "any report to that effect is unfounded."
Shares of Disney rose about 1% in early trading Friday, although they remain down for 2023.