Walt Disney CEO Bob Iger is looking to sell some of the company’s TV and streaming assets, and may be considering selling the entire company.
bloomberg report on potential sales, referring to Iger’s now-infamous “Squawk Box” interview. Interviewed by David Faber at a media conference in Sun Valley, Idaho, Iger’s comments about writers’ and actors’ strikes went viral. But during the interview, he also agreed with Faber that ABC and its local stations “may not be material” to The Walt Disney Company. Faber speculated about a possible sale, and Iger said, “We have to be open and objective about the future of those companies.” With cable TV in decline, Iger says, Iger wants to sell most of Disney’s TV assets, especially ABC, Freeform and FX.
Disney’s streaming services lost money and subscribers – Disney+ lost 4 million subscribers in the most recent quarter. Broadcasting is expected to cause a total loss of $800 million in the third quarter.
According to Bloomberg, Iger wants to sell or completely restructure Disney’s TV and streaming business in India. This is where Disney+ has taken the biggest losses. Disney+ Hotstar, the region’s version of Disney+, has lost the rights to live stream Indian Premier League (IPL) cricket matches, resulting in the service losing 3.8 million subscribers in the first quarter and 4.6 million subscribers in the second quarter.
Iger plans to stick with Hulu, and Disney will launch a joint app for Hulu and Disney+ later this year. Streaming services will still have their own separate apps, at least for now. Disney will likely buy Comcast’s 33% stake in Hulu in 2024.
Selling Disney Television Networks could earn it about $8 billion, says Wells Fargo analyst Steve Cahal, which could help offset the cost of the final third. Potential buyers will be financial entities, such as private equity firms.
Iger wants to stick with ESPN, but is looking for a partner for the sports network. Potential partners include sports companies and Apple.
Speaking of Apple, there have been rumors since Iger’s return last November that he would sell all of his Disney products to the tech company. At the time, Egger described the rumor as “nothing more than speculation,” but a sale still appeared likely.
Iger is not known for selling out. During his first stint as CEO of Disney, he acquired Pixar, Marvel, and Lucasfilm, all of which proved successful purchases.
According to Bloomberg, television generated 35% of Disney’s revenue ($24.8 billion) prior to the COVID-19 pandemic, and more than 50% ($7.5 billion) of its operating income.
It is also worth noting that Iger got his start not only on television, but on ABC. He began working for the network in 1974, long before it was acquired by Disney. He did menial work on television and worked his way up the ranks. He was named president of ABC Entertainment in 1989. He was president of the ABC Network Television Group from January 1993 to 1994. He was named senior vice president of Capital Cities/ABC in March 1993 and then executive vice president in July 1993. The following year, he was named president and COO of Capital Cities/ABC.
When ABC was acquired by The Walt Disney Company in 1995, Iger was acquired and he worked his way up to CEO of the entire company over the next decade, finally reaching number one in 2005 after ousting Michael Eisner. Iger served as CEO until his retirement in 2020, but returned to the position in November 2022 after Bob Chapek was also fired.
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