Byron Allen, media mogul, bids $10B for Disney’s ABC and other networks.
Comedian Byron Allen Offers $10 Billion to Buy ABC TV Network and More
In a bold move, comedian and media mogul Byron Allen has made a staggering $10 billion offer to acquire Walt Disney’s ABC TV network, local stations, FX, and National Geographic cable channels. This exciting news was confirmed by a spokesperson for Mr. Allen on Friday.
The preliminary offer is based on an estimation that the properties generated an impressive $1.25 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past 12 months, as reported by Bloomberg.
The $10 billion figure represents a multiple of eight times EBITDA, and Mr. Allen is willing to adjust his proposed price based on the actual financial performance of the assets, according to the publication.
“It’s not a complete surprise to see this bid come in from him,” said Liz Miller, president and founder of Summit Place Financial Advisors. “We’ve seen him before and recently over the past year or so, a bid for broadcast assets. He’s clearly looking to build his own media empire with those broadcast assets.”
This move follows a trend of media consolidation, as Mr. Allen, a standup comic turned media tycoon, has been actively expanding his media portfolio. In recent years, he has made impressive acquisitions totaling over $1.3 billion, including the Weather Channel and multiple local TV stations across the United States.
The offer comes in response to Disney CEO Bob Iger’s statement in July that the company was open to selling some of its traditional TV assets, which have struggled due to the rise of streaming services. Bloomberg reports that Disney has been in discussions with potential buyers, including local broadcaster Nexstar.
However, Disney has not yet publicly acknowledged any offer.
“While we are open to considering a variety of strategic options for our linear businesses, at this time The Walt Disney Company has made no decision with respect to the divestiture of ABC or any other property and any report to that effect is unfounded,” the company said in a Sept. 14 statement.
In a recent earnings report, Disney’s streaming operation reported losses of $512 million, bringing the total streaming losses to over $11 billion since the introduction of Disney+ in 2019. Disney has been facing financial challenges across its declining linear TV business, struggling streaming service, disappointing box office results, and decreasing parks attendance, following the initial surge after the COVID-19 pandemic.
“Disney, at its core, has always been a creative content company and a leading creative content company. The advance of streaming and then the challenges with the legacy broadcast assets have really taken the focus off where Disney believes its own strength is and where it’s really worked its own strength in the past,” added Ms. Miller.
Disney’s TV subscribers have been declining at a rate of 6–7 percent, impacting advertising and affiliate revenue. Even Disney+, which attracted millions of viewers in recent years, experienced a significant surge in cancellations for the first time.
“From our point of view, Disney has problems across just about every one of its businesses,” commented Brandon Nispel, KeyBanc capital markets analyst, to MarketWatch.
In the quarter, the company incurred $2.65 billion in restructuring losses due to content removal from its streaming services, termination of licensing agreements, and $210 million in severance payments to laid-off workers.
How might the potential acquisition of ABC TV network by Byron Allen contribute to the creation of unique and compelling programming for a broad audience?
Ding Allen, for its TV assets for several months now.
If the deal goes through, it would make Byron Allen, the founder, and CEO of Entertainment Studios, one of the largest African American owners of cable networks and broadcast television stations. Allen, who started his career as a comedian, has built a successful media empire over the years, with a focus on diversity and inclusive programming. This acquisition would further solidify his position in the industry and provide him with a significant platform to showcase his content and reach a wider audience.
Byron Allen’s $10 billion offer is a testament to his confidence in the potential of ABC TV network and its associated properties. The combined strength of ABC, FX, and National Geographic would offer a diverse range of content to viewers, from news and entertainment to documentaries and scripted shows. This acquisition could lead to the creation of unique and compelling programming that appeals to a broad audience.
However, it is important to note that this offer is still in the preliminary stages, and there are many factors that could influence its outcome. The final price may be adjusted based on the actual financial performance of the assets, as stated by Allen himself. Additionally, other potential buyers may emerge, leading to a competitive bidding process. The decision ultimately lies with Walt Disney and its board of directors, who will carefully evaluate the offer and assess its strategic fit and potential benefits.
Regardless of the outcome, Byron Allen’s bold move highlights the evolving landscape of the media industry. As streaming services continue to gain popularity and traditional TV networks face challenges, consolidation and strategic partnerships become key strategies for survival. This not only allows media companies to stay competitive but also enables them to leverage their resources and expertise to create innovative content and deliver it to a diverse audience.
Furthermore, the potential acquisition of ABC TV network by Byron Allen represents a significant win for diversity in the media industry. As an African American media mogul, Allen’s success and influence can inspire aspiring entrepreneurs and content creators from underrepresented communities. His commitment to representation and inclusive programming has the potential to reshape the industry and pave the way for more diverse voices and perspectives to be heard.
In conclusion, comedian and media mogul Byron Allen’s $10 billion offer to acquire ABC TV network, local stations, FX, and National Geographic cable channels is a bold move that highlights the changing dynamics of the media industry. If successful, this acquisition could contribute to the diversification of content and ownership in the industry, while also providing Allen with a significant platform to showcase his programming. However, it is important to recognize that this offer is still in the preliminary stages, and the final outcome will be determined by various factors. Nonetheless, Allen’s bid serves as a testament to his confidence in the potential of these assets and his commitment to building a media empire.
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