Wed. Sep 20th, 2023
    Disney Considering Strategic Options for ABC, Sale Could Impact ABC News

    Disney has confirmed that it is open to “a variety of strategic options” for its network ABC, although it denies any plans to sell the network at this time. Speculation arose last week after a Bloomberg report revealed that Disney had held talks with TV station operator Nexstar Media about a potential sale of ABC. Media mogul Byron Allen also expressed interest in acquiring ABC. The possible sale of ABC could have significant implications for ABC News.

    ABC’s newscasts, including “Good Morning America” and “World News Tonight,” continue to draw sizeable audiences, making them profitable for the network. However, a new owner may not be willing to pay the high salaries of top talent such as Robin Roberts and George Stephanopoulos. The new owner would not have the financial resources of Disney to support these salaries.

    Matthew Belloni, a reporter for The Hollywood Reporter, suggests that declining TV networks, despite turning a profit, could be seen as the new newspapers in terms of investors’ perspective. Private equity firms previously purchased newspapers recognizing that they could reduce costs by letting high-paid talent go. The same approach could be taken by a potential new owner of ABC.

    There is also speculation about the future of George Stephanopoulos, with some claiming that his current salary is inflated due to his political connections. Stephanopoulos has long-standing ties to powerful Democrats, having worked in Bill Clinton’s White House. Some believe that his connections are vital to ABC, particularly during a presidential election.

    The recent leaked talks about a potential sale of ABC have caused concern within ABC News. However, Disney has stated that it has made no decision regarding the divestiture of ABC or any other property.

    Source: Fox News (source)