Part 6/12:

The Sale of Linear Networks: Prospects and Challenges

The focus on divesting ABC and FX raises complex questions. These networks historically contributed a significant portion of Disney’s revenue—over $24 billion annually from media networks alone. However, with cord-cutting and shifting viewer habits, their long-term value is diminishing.

Potential buyers for these assets might include private equity firms, which could prioritize short-term profit extraction over long-term strategic fit. Nonetheless, regulatory hurdles loom large. Companies like Comcast, Paramount, and Fox already own major broadcast networks, and acquiring additional ones could trigger antitrust scrutiny from agencies such as the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC).