Disney insisted last week that it is not selling ABC “at this time” due to ongoing speculation, but admitted it is open to “a variety of strategic options” for the network and a sale could have a significant impact on ABC News.
Disney’s statement followed a Bloomberg report on Thursday that the media giant was in “exploratory discussions” with TV network Nexstar Media about a possible sale of ABC. Media mogul and standup comedian Byron Allen has also made a massive bid to buy ABC, Allen Media Group confirmed to FOX News Digital.
When news of a potential sale hit headlines, ABC News staffers were quick to voice their concerns to liberal media allies. CNN’s media newsletter on Thursday was headlined “Fear at ABC” and quoted employees saying, “Everyone is freaking out” and “This is all everyone is talking about at work.”
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Disney last week insisted it would not sell ABC “at this time” amid ongoing speculation, but admitted it was open to “a variety of strategic options” for the network and a sale could have a significant impact on ABC News. (Ida Mae Astute/Walt Disney Television via Getty Images)
In July, Disney CEO Bob Iger suggested that ABC “may not be core” to the company, but also said he was “incredibly passionate about news.” Bankers have suggested that Iger would be better off selling ABC because the Walt Disney Company would be extremely attractive as a pure-play intellectual property company.
Many industry insiders and observers alike insist that network television news has been outdated for years, but ABC’s newscasts still attract a viable audience that can turn a profit. “Good Morning America” averages nearly three million viewers each morning and “World News Tonight” is typically the most-watched news program on television.
Hosts Robin Roberts, George Stephanopoulos, Michael Strahan and David Muir are paid well, and a new owner without Disney’s deep pockets might not be willing to pay eight-figure salaries to talent.
In July, Puck discussed with Hollywood reporter Matthew Belloni how Disney could cut costs on his podcast “The Town.” Belloni suggested that television networks, which are clearly in decline but still turning a profit, could be viewed similarly to how investors viewed newspapers in recent years.
“They’re basically the new newspapers when all these private equity firms came in and bought newspapers because they realized, ‘Maybe you don’t have to pay the anchors of ‘Good Morning America’ a combined $75 million a year to to host “A morning television show whose ratings are unlikely to increase significantly in the new environment,” Belloni said.
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In July, Disney CEO Bob Iger suggested that ABC “may not be core” to the company (Jerod Harris/Getty Images for Vox Media).
“Maybe fire them or let their contracts expire and bring in cheaper anchors,” he continued. “You can earn extra money there. These are the things that a kind of private equity owner or a kind of value owner would do to ABC.”
A longtime news executive at the network singled out Stephanopoulos, saying there was “no known universe in which” he was worth his current salary.
“He got that contract because he gave Bob Iger access to the Obamas and Bidens,” said the network’s longtime news executive.
In fact, Stephanopoulos’ ties to powerful Democrats are clearly deep-rooted, having made his name as a key figure in Bill Clinton’s White House. In 1994, A New Republic’s story headlined: “The Children Are Doing Well. Well, sort of. In Praise of the Stephanopoulites,” and described his close friendship with Ron Klain, who later served as Biden’s first chief of staff.
Others in the industry believe Stephanopoulos’ political connections are crucial to the network, especially heading into a presidential election. ABC News did not immediately respond to a request for comment.
Since Iger’s return last year, Disney has initiated layoffs affecting thousands of employees while cutting billions of dollars in spending.
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George Stephanopoulos rose to fame for his work as a communications specialist in President Bill Clinton’s White House. (Portal/Carlo Allegri)
In the meantime, there have been a lot of rumors about a possible sale, and last week’s Bloomberg report really seemed to be an eye-opener and increase concern at ABC News.
“These discussions were passed on to Bloomberg to prevent the deal,” said the longtime manager.
ABC News did not respond to a request for comment about the leaks.
In a statement posted on its website Thursday, Disney denied claims that a decision had been made to sell ABC.
“While we are open to considering a variety of strategic options for our linear businesses,” the company wrote, “at this time, The Walt Disney Company has not made a decision regarding the divestiture of ABC or other assets and reports thereof. “Effect is unfounded.”
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Fox Business’ Joe Toppe contributed to this report.
Brian Flood is a media reporter for Fox News Digital. Story tips can be sent to [email protected] and on Twitter: @briansflood.