Walt Disney Co. is looking to hire an investment bank to explore a possible sale of its eight T.V. stations, a move that could make them a ton of money!
Disney’s stations are in larger markets like New York, L.A. and Chicago.
The is not the first time Disney has flirted with selling its broadcast group, and sources cautioned that the media giant is still mulling the idea and may decide against it.
You will be happy to know that Disney is not considering selling ABC.
There has been a wave of consolidation as companies buy up TV stations to reap the rising “retransmission” fees cable companies and other distributors cough up for the right to carry broadcast signals.
The more stations a company owns, the more leverage it has when it enters negotiations with pay T.V. providers
“The station business is better than it’s been in a decade,” Bank said. “However, stations are probably the least synergistic business to the Disney Brand within the platform.” Disney’s broadcast stations revenue totaled $5.82 billion last year.
Disney’s ABC stations are in the middle of negotiations with satellite-TV operator Dish. ABC’s rival CBS and its stations recently won retrans rates from Time Warner Cable that approach $2 per subscriber a month.
In 2010, Disney sold two stations in Flint, Mich., and Toledo, Ohio. At the time, smaller stations were selling for between $10 million and $30 million.
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