Disney’s Bob Iger raised eyebrows when he said in a July interview with CNBC that the linear TV business model was “broken” and that his company’s cable channels “might not be core” to their business model.
Many saw this comment as tantamount to putting out a big, flashing “for sale” sign on Disney’s cable channels which include ABC, FX, National Geographic, and others.
The first serious offer for those assets came this week from Byron Allen, a media mogul whose Allen Media Group has already acquired a number of broadcast and regional TV stations including The Weather Channel. In recent years, Allen has been on the lookout for opportunities to expand his network, coming close to acquiring the BET channel from Paramount before talks fell apart at the last minute.
Allen is said to have offered Disney $10 billion to acquire ABC, FX, National Geographic, and eight local TV stations. Nextstar, the largest TV station operator in the U.S., is rumored to be another potential suitor for ABC and Disney’s regional channels, though no formal offer has yet been made.
With this level of interest, it now seems likely that Disney will have the opportunity to sell off its legacy cable networks, bringing significant change to the cable television landscape in the coming years.