Bob Iger is shifting the direction of The Walt Disney Company. The CEO revealed in a recent interview that he’d like Disney to downsize.
Iger put roughly a third of the company up for sale this past week, in a move in which he declared Disney’s linear TV assets to be noncore. This includes that of TV networks ABC, FX, and Freeform. Additionally, Iger says the company is looking for a strategic partner for ESPN–as he’s not willing to sell the whole thing.
Iger also says the company is already looking to sell or restructure its TV and streaming business in India as well.
For those who don’t remember, The Walt Disney Company spent a great deal of time over the past few years doubling down in its film and TV sector in a move to bring the company back following the COVID-19 pandemic.
Prior to the pandemic, Disney’s media networks generated 35%, or $24.8 billion, of company revenue and more than 50%, or $7.5 billion, of its operating income. However, now it seems the decline of cable TV is throwing Iger through a loop.
Reportedly, Disney’s streaming business is expected to see a loss of roughly $800 million in the company’s just-ended third quarter. Additionally, Disney+ is said to have lost 4 million subscribers last quarter.
Iger put these divisions of the company up for sale during an interview with CNBC in Sun Valley, Idaho. Iger was taking a break from attending an annual summit for the media and tech elite organized by the investment bank Allen & Co.
For those not familiar, the conference has been an incubator for some of the media industry’s most high profile deals.
According to Wells Fargo analyst Steve Cahill, a sale of Disney’s TV business could rake in roughly $8 billion, which could largely offset the cost of the company’s contractual obligation to buy Comcast Corp’s one-third stake in Hulu.
What are your thoughts of Bob Iger’s statements regarding a sale of roughly one third of The Walt Disney Company? Let us know in the comments!
- Show Your Love for Figment With This Figment Dragon Shoulder Magnet! - February 7, 2024
- Greet Guests in ‘Frozen’ Style with an Olaf Christmas Door - December 10, 2023
- Disney+ Bundles with Hulu in One App in New Beta Launch - December 7, 2023