Disney's ABC Stations Could Be Sold to Nexstar with Little Friction, Progress Made in DirecTV Carriage Dispute

Walt Disney CEO Bob Iger is considering strategic options for the company's traditional broadcast and cable businesses, including national network ABC, as the decline of linear TV continues. With the rise of streaming services and cord-cutting, TV networks are losing relevance and viewership, leading to a decline in TV advertising. The value proposition has changed, with streaming giant Netflix now worth nearly as much as Disney, Warner Bros Discovery, Fox, and Paramount combined. While sports programming is propping up TV networks, the increasing costs of securing rights and the entry of technology giants like Amazon and Apple pose challenges. Advertisers are also facing shrinking audiences, with traditional TV viewership falling below half while streaming hits record levels. Disney's TV channels, including ABC, are estimated to be worth around $15 billion, and the company may consider a spin-off or a partnership with a private equity firm to navigate the changing landscape.