[opendtv] News: Disney May Sell ABC TV Stations, Caris Analyst Says (Update1)
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 16 Aug 2008 08:38:49 -0400
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiKRLfeHBCMQ
Disney May Sell ABC TV Stations, Caris Analyst Says (Update1)
By Andy Fixmer
Aug. 13 (Bloomberg) -- Walt Disney Co., the second-largest U.S. media
company, may sell its 10 ABC television stations, fetching as much as
$4.8 billion, said David Miller, an analyst at Caris & Co. who has
covered the company since 2000.
"We have reason to believe that Disney is heavily considering the
notion of putting its 10 owned and operated television stations up
for sale,'' Miller wrote in a report today. He said in an interview
the finding is his analysis and not from outside sources. Disney
spokesman Jonathan Friedland called the report ``purely speculative''
and declined to comment.
Disney owns stations in cities including New York, Los Angeles and
Chicago. A sale would depend on at least those outlets in the biggest
markets remaining affiliated with Disney's ABC TV network, Miller
said. ABC has broadcast agreements with about 231 TV stations in the
U.S., he said.
"As long as the new owner keeps the ABC affiliations, that should be
enough for Disney,'' Miller said. The analyst, who is in Los Angeles,
rates the shares ``above average.''
The 10 outlets annually contribute about $440 million in earnings
before interest, taxes, depreciation and amortization, according to
Miller. Disney, based in Burbank, California, doesn't disclose the
stations' sales and operating profit.
By selling the stations, Disney would exit the TV distribution
business and become the only large, public U.S. media company to be
completely focused on content, Miller said.
Disney fell 42 cents, or 1.3 percent, to $31.74 at 1:40 p.m. in New
York Stock Exchange composite trading. The shares had dropped less
than 1 percent this year before today.
ABC also owns stations in Philadelphia; San Francisco; Houston;
Raleigh-Durham, North Carolina; Fresno, California; Flint, Michigan;
and Toledo, Ohio, according to a Disney regulatory filing.
To contact the reporter on this story: Andy Fixmer in Los Angeles at
afixmer@xxxxxxxxxxxxx
Last Updated: August 13, 2008 13:54 EDT
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