Byron Allen, Media Mogul and founder of Allen Media Group, has made a $10 billion bid to purchase Disney’s ABC television network and local stations and the FX and National Geographic cable channels, according to TheWrap.
What’s Happening:
- Byron Allen has reportedly made a $10 billion dollar bid to purchase the Disney-owned ABC television network and local stations, as well as FX and National Geographic.
- This comes as a response to comments from Walt Disney Company CEO Bob Iger’s comments back in July saying that these assets “may not be core to the company.”
- Disney has replied in a statement on Thursday, saying “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.”
- Allen founded the Allen Media Group, which owns 27 network affiliate broadcast television stations in 21 U.S. markets, representing the four majors (ABC, NBC, CBS, and FOX). They also operate 12 24-hour HD television networks serving nearly 300 million subscribers, including The Weather Channel, The Weather Channel en Español, Pets.TV, Comedy.TV, Recipe.TV, Cars.TV, ES.TV, MyDestination.TV, Justice Central.TV, The Grio Television Network, This TV and Pattrn.
- His offer is based on the assumption that the Disney-owned properties generated $1.25 billion in earnings before interest, taxes, depreciation and amortization over the past 12 months.
- According to reports, Allen would change the proposed price, which is based on a multiple of eight times EBITDA, if that number is higher or lower.
- Allen would work with banks and private equity firms to finance an acquisition and could potentially sell local TV stations that aren’t affiliated with ABC, so as not to create a conflict of interest.
- Bloomberg has also reported that Disney has had “exploratory” discussions with Nexstar Media Group regarding a potential sale of ABC. Nexstar owns America’s largest local broadcasting group with 200 owned or partner stations in 116 U.S. markets reaching 212 million people. Their portfolio also includes affiliates for the big four networks, as well as The CW.
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