Disney is facing a crucial decision regarding the fate of its traditional broadcast television channels, including ABC. According to a recent Bloomberg report, there have been discussions between Disney and Nextar Media about potentially selling these stations. However, an official spokesperson from Disney has clarified that no decision has been made thus far.
The entertainment giant is currently focused on maximizing returns for its shareholders, especially after a challenging period for its stock. One particular hurdle involved a dispute with cable company Charter Communications over pricing for services that included Disney channels in pay-TV bundles. In an effort to please shareholders looking for increased profitability, Disney may consider divesting its linear broadcast assets, which are seen by some as having limited potential for growth.
While Disney is keeping its strategic options open, it wants to dispel any premature reports claiming a definite decision regarding the divestiture of ABC or any other property. A spokesperson emphasized that the rumors circulating are unfounded at this time.
Despite the uncertainty surrounding the fate of its traditional broadcast channels, Disney's stock showed a modest increase of 0.7% in premarket trading on Friday, reaching $86.06. However, it is worth noting that the stock has experienced a significant decline of 22% over the past 12 months.