Walt Disney CEO Bob Iger Reverses Decision on TV Channel Sale, Emphasizes Essential Role at New York Times DealBook Summit
Disney's CEO, Bob Iger, shifts stance on selling traditional TV channels, ABC and FX, highlighting their ongoing significance. Insights from the New York Times DealBook Summit reveal the evaluation of these channels in alignment with Disney's evolving plans. Get updates on potential offers, board considerations, and the impact on Disney's market performance.
Walt Disney Co.'s CEO, Bob Iger, has reversed his earlier considerations to sell the company's traditional TV channels, including ABC and FX. Having floated the idea of a sale in July, Iger now believes these channels may still be essential to the company's future. Speaking at the New York Times DealBook Summit, he emphasized that the channels, previously thought to be non-core, are continually evaluated to align with the company's evolving plans.
While Disney had received interest in the channels from Nexstar Media Group Inc. and an offer from businessman Byron Allen, TV chief Dana Walden highlighted the synergy between networks like ABC and the Hulu streaming service, emphasizing their ability to create a broader audience.
At the summit, Iger stated that the company regularly assesses its holdings to gauge their current and potential value. Shares of Disney saw minimal change, closing at USD 92.53 in New York, with a 6.5% increase for the year.
In response to activist investor Nelson Peltz's Trian Fund Management LP, Disney's board will consider potential director nominations as part of its standard nomination and appointment process. Additionally, the company announced the appointment of Morgan Stanley CEO James Gorman and media executive Jeremy Darroch to its board.
Notably, Disney has not resumed advertising on X, the platform formerly known as Twitter, following a halt in ads after owner Elon Musk's endorsement of an antisemitic conspiracy theory.
In a broader context, Iger, renowned for opening the Shanghai Disneyland park, expressed diminished optimism about Disney's business prospects in China. Tensions between the U.S. and China, impacting American companies operating in the country, contribute to this revised outlook.
Moreover, Iger revealed that his offer to engage in a discussion with Florida Governor Ron DeSantis was declined. The company and the Republican governor are currently entangled in a legal dispute regarding oversight of Disney's Florida theme parks.
What's Your Reaction?
