{"id":2031664,"date":"2023-09-14T11:27:01","date_gmt":"2023-09-14T15:27:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/desperate-disney-could-look-to-sell-off-large-assets-to-market-competitors\/"},"modified":"2023-09-14T11:27:01","modified_gmt":"2023-09-14T15:27:01","slug":"desperate-disney-could-look-to-sell-off-large-assets-to-market-competitors","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/desperate-disney-could-look-to-sell-off-large-assets-to-market-competitors\/","title":{"rendered":"Desperate Disney Could Look to Sell Off Large Assets to Market Competitors"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdesperate-disney-could-look-to-sell-off-large-assets-to-market-competitors%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2031664&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>What\u2019s next in the everything-must-go-sale atmosphere at Disney?<\/p>\n<p>Well, if reports are to be believed, the <a href=\"https:\/\/www.westernjournal.com\/branding-expert-disney-execs-crisis-talks-snow-white-remake-star-rachel-zegler-pr-disaster\/\" target=\"_blank\" rel=\"noopener\">House of Mouse<\/a> is looking to offload its owned-and-operated local ABC stations in eight markets \u2014 and if they do, the potential buyer sees \u201clittle friction\u201d if they\u2019re put on the market.<\/p>\n<p>\u201cWe think there could be some opportunities depending on how things fall out,\u201d said Tom Carter, a longtime executive with broadcast giant Nextstar who now serves as a senior adviser to the CEO and on the board of directors, according to industry publication <a href=\"https:\/\/deadline.com\/2023\/09\/disney-abc-local-tv-stations-nexstar-could-acquire-directv-carriage-dispute-1235546028\/\" target=\"_blank\" rel=\"noopener\">Deadline<\/a>.<\/p>\n<p>\u201cDisney had talked about it this way: \u2018Let\u2019s morph into a GrowthCo and a SustainableCo,\u2019\u201d Carter said when he was asked about the potential of Disney to sell off the stations at an investor conference in New York, the publication reported Wednesday.<\/p>\n<p>\u201cDisney CEO Bob Iger spurred talk of a potential sale of the eight stations over the summer when he said some of the company\u2019s linear TV holdings \u2018may not be core\u2019 to the company in the future,\u201d Deadline reported. (\u201cLinear TV\u201d is industry lingo for <a href=\"https:\/\/www.westernjournal.com\/judge-judy-ends-25-year-broadcast-tv-run-humble-way-wears-one-little-accessory-stands\/\" target=\"_blank\" rel=\"noopener\">old-fashioned TV<\/a> delivered via broadcast, cable and satellite.)<\/p>\n<p>\u201cPrivate equity firms are among those putting out feelers, given their sizable investments in local TV in recent years. Nexstar is a poster child for growth through [mergers and acquisitions], with Carter estimating that the company pulled off about 40 acquisitions in his first 10 years at the company. Multi-billion-dollar deals for Media General and Tribune Media vaulted what had been a boutique Texas firm two decades ago to the No. 1 spot among all U.S. station owners, and last fall it showed its appetite again by taking a majority stake in The CW.\u201d<\/p>\n<p>\u201cThe only issue is, the SustainCo is funding the GrowthCo, and if you sell one, you\u2019ve lost access to that cash flow. Granted, you\u2019re going to have proceeds, but is that really what you want to do?\u201d Carter said.<\/p>\n<p>As you can probably guess from context, \u201cSustainCo\u201d is jargon for a company with a series of assets that have limited upside but provide a predictable stream of revenue. \u201cGrowthCo,\u201d meanwhile, involves riskier assets with bigger rewards \u2014 streaming here would be the prime example, as Disney has leaned pretty heavily into its Disney+ offerings (with decidedly mixed results).<\/p>\n<p>However, Carter said that if Disney wanted to fund growth through selling off sustainable, if not appreciating, assets, Nextstar would jump at the opportunity.<\/p>\n<p>\u201cI think you\u2019ll see us take a look at it,\u201d Carter said, noting the \u201cmassive\u201d windfall the company had seen from previous deals.<\/p>\n<p>However, there would be complications. The Federal Communications Commission has a cap of 39 percent station ownership by one company, and Nextstar is at that limit.<\/p>\n<p>\u201cBut that would not preclude us from buying stations,\u201d he said.<\/p>\n<p>\u201cABC\u2019s portfolio of stations is modest. It\u2019s only eight, largely in the top 10 markets. We\u2019re in eight of the top 10 markets already with a CW station. We could buy a second station in that market and not increase our household footprint. There may be a few stations that would require divestiture of either a Nexstar station or an ABC station, but we could onboard those with relatively little friction.\u201d<\/p>\n<p>Then there\u2019s the issue of what programming would involve.<\/p>\n<p>\u201cYou\u2019re seeing ESPN simulcast a large portion of their sports telecasts on ABC. If you were to buy the ABC complex, how would that work going forward? There are a lot of questions that need to be answered,\u201d Carter said.<\/p>\n<p>However, the fact that Iger might be looking to pare down the company\u2019s holdings by selling off iconic owned-and-operated stations like WABC-TV in New York City and KGO-TV in San Francisco shows how hard the <a href=\"https:\/\/www.westernjournal.com\/zg-its-no-longer-a-small-world-disney-ceo-bob-iger-terminates-covid-19-era-work-from-home-policy\/\" target=\"_blank\" rel=\"noopener\">returning CEO\u2019s job<\/a> has been.<\/p>\n<p>In February, <a href=\"https:\/\/www.wsj.com\/articles\/disney-dis-q1-earnings-report-2023-11675825320\" target=\"_blank\" rel=\"noopener\">The Wall Street Journal<\/a> reported that Iger, who had taken over for former CEO Bob Chapek after he was fired in 2022, was cutting 7,000 jobs and looking to shed $5.5 billion in costs.<\/p>\n<p>\u201cIt\u2019s time for another transformation,\u201dIger said at the time, with the Journal reporting Iger \u201csaid the changes would reshape the company around creativity, reduce expenses and lead to profits in its streaming business.\u201d<\/p>\n<p>The move came after several very expensive flops for the company\u2019s animation division, which emphasized the company\u2019s wokeness by shoving LGBT themes into parents\u2019 faces; \u201cLightyear\u201d and \u201cStrange World\u201d lost over a <a href=\"https:\/\/www.westernjournal.com\/report-disney-lost-quarter-billion-dollars-two-woke-failures\/\" target=\"_blank\" rel=\"noopener\">quarter of a billion dollars together<\/a>.<\/p>\n<p>Things haven\u2019t been much better since, either. \u201c<a href=\"https:\/\/www.westernjournal.com\/epic-blockbuster-expected-make-1-billion-sound-freedom-blow-away-us-total\/\" target=\"_blank\" rel=\"noopener\">Elemental<\/a>\u201d had the lowest opening for any Pixar movie in the Disney animation division\u2019s history, and \u201c<a href=\"https:\/\/www.westernjournal.com\/disney-destroys-indiana-jones-faces-box-office-bomb-amid-rumors-female-lead-taking-franchise\/\" target=\"_blank\" rel=\"noopener\">Indiana Jones and the Dial of Destiny<\/a>,\u201d the company\u2019s summer tentpole attraction, also failed to perform as expected.<\/p>\n<p>As for ESPN, another Disney asset, the company has reportedly been looking for <a href=\"https:\/\/www.westernjournal.com\/desperate-disney-reached-3-major-companies-dump-espn\/\" target=\"_blank\" rel=\"noopener\">one or more of the major sports leagues<\/a> it broadcasts to take a financial interest in the network. As for streaming, an August report revealed the company was using sneaky tactics \u2014 like premiering series meant for the Disney+ on other networks first \u2014 to <a href=\"https:\/\/www.westernjournal.com\/report-disney-fudging-numbers-losing-much-money-anyone-imagined\/\" target=\"_blank\" rel=\"noopener\">fudge the numbers<\/a> regarding just how much money they were losing on the service.<\/p>\n<p>And, as for theme parks, <a href=\"https:\/\/www.westernjournal.com\/disney-world-sees-previously-unfathomable-sign-fans-jumping-ship-july-4-holiday\/\" target=\"_blank\" rel=\"noopener\">attendance was down significantly<\/a> over the early summer holidays, leading to speculation that part of the company\u2019s portfolio was in serious trouble, too.<\/p>\n<p>But then, in the year of the woke backlash, Disney has become to entertainment what Bud Light has become to beer. At least Bud Light\u2019s brewers weren\u2019t <a href=\"https:\/\/www.westernjournal.com\/anheuser-busch-competitor-reveals-changes-made-stores-across-us-bud-lights-decline-now-locked\/\" target=\"_blank\" rel=\"noopener\">hemorrhaging cash before that<\/a>; Disney is another matter.<\/p>\n<p>At Disney, apparently, the fire sale continues unabated. It was an entirely predictable situation, given the company\u2019s bad bets on wokeness and streaming content these past few years \u2014 and yet, I can\u2019t help but feel sorry for the tears Mickey\u2019s going to shed when he has to sell off Pluto. Cheer up, though: Maybe Nextstar will let the poor, penurious mouse have a visit with his ol\u2019 pooch every now and again.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/desperate-disney-look-sell-off-large-assets-market-competitors\/\">Desperate Disney Could Look to Sell Off Large Assets to Market Competitors<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western Journal<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s next in the everything-must-go-sale atmosphere at Disney? Well, if reports are to be believed, the House of Mouse is looking to offload its owned-and-operated local ABC stations in eight markets \u2014 and if they do, the potential buyer sees \u201clittle friction\u201d if they\u2019re put on the market. \u201cWe think there could be some opportunities<\/p>\n","protected":false},"author":663,"featured_media":2031665,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2031664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2031664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/663"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2031664"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2031664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2031665"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2031664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2031664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2031664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}