Sources say Disney engages in initial discussions with Nexstar regarding potential sale of ABC

Disney in talks to sell ABC TV network to Nexstar Media Group

Walt Disney Co has reportedly engaged in preliminary discussions about selling its U.S. TV network ABC to regional TV station operator Nexstar Media Group Inc, according to sources familiar with the matter. The talks come after Disney CEO Bob Iger stated in July that the company could sell some of its traditional TV assets, which have been struggling for years due to the rise of streaming services.

Nexstar’s interest in acquiring ABC is still in its early stages and may not result in a deal, one of the sources said. Both companies have declined to comment on the matter. However, Disney spokesperson mentioned that while the company is open to considering strategic options for its linear business, no decision has been made yet regarding the divestiture of ABC or any other property.

Disney’s ABC includes a national television network and eight regional stations, along with affiliation agreements with approximately 240 local television stations that reach almost all U.S. television households. On the other hand, Nexstar operates 200 owned or partner stations in 116 markets, reaching over two-thirds of the U.S. population. It also owns national TV networks such as CW and NewsNation, and has a market value of $5.25 billion.

The discussions between Disney and Nexstar have caused a positive reaction in the stock market, with Disney shares closing up 1.2% and Nexstar stock rising 5.7% following the report. Bloomberg News initially reported the talks between the two companies about a potential deal for ABC.

This development aligns with Disney’s previous statements about considering strategic partnerships for its traditional TV assets. The company has been facing increasing competition from streaming platforms, which has impacted the viewership and profitability of its linear TV networks. Selling ABC to Nexstar would allow Disney to streamline its operations and focus more on its streaming services, such as Disney+.

It is important to note that these discussions are still in the early stages and there is no guarantee that a deal will be reached between Disney and Nexstar. Both companies have yet to release any official statements regarding the potential acquisition.

Reporting by Dawn Chmielewski in Los Angeles, additional reporting by Akash Sriram in Bengaluru. Editing by Josie Kao.

Our Standards: The Thomson Reuters Trust Principles.

Original Story at www.reuters.com – 2023-09-14 21:13:00