UPDATED 3:28 P.M.
(Reuters) – Walt Disney Co has held exploratory discussions about selling its U.S. TV network ABC to regional TV station operator Nexstar Media Group Inc, people familiar with the matter said on Thursday.
The discussions come after Disney CEO Bob Iger said in July that the company could sell some of its traditional TV assets, which have struggled for years due to the rise of streaming services.
Nexstar’s interest is preliminary and may not lead to any deal, one of the sources said.
Both sources requested anonymity because the matter is confidential.
A Disney spokesperson said while the company was “open to considering strategic options for its linear business”, it has not made a decision yet on the divestiture of ABC or any other property.
Nexstar did not immediately respond to requests for comment.
Disney shares closed up 1.2%, while Nexstar stock rose 5.7% following the report.
Bloomberg News first reported the two companies were in talks about a deal for ABC.
Disney’s ABC comprises a national television network and eight regional stations. It also has affiliation agreements with about 240 local television stations reaching almost all U.S. television households.
Nexstar has 200 owned or partner stations in 116 markets reaching over two-thirds of the U.S. population, as well as national TV networks such as CW and NewsNation. It has a market value of $5.25 billion.
Then Disney Chief Executive Michael Eisner agreed to buy Capital Cities/ABC for $19 billion in 1995.
(Reporting by Dawn Chmielewski in Los Angeles; Additional reporting by Akash Sriram in Bengaluru; Editing by Josie Kao)
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(Reuters) -Walt Disney has held initial talks on the sale of its ABC network to U.S. local TV station owner Nexstar Media, Bloomberg News reported on Thursday, citing sources.
Shares of the media giant rose 1%, while Nexstar stock jumped nearly 6%.
Disney CEO Bob Iger said in July that the company could sell some of its traditional TV assets that have struggled for years due to the rise of streaming services.
Nexstar and Disney did not immediately respond to Reuters requests for comment.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)
WMBD NEWS NOTE: In Peoria, Nexstar owns WMBD-TV, Channel 31. Nexstar also owns stations in Chicago, the Quad Cities, Champaign, and Rockford in Illinois, among other areas. WMBD Radio is owned by Midwest Communications, a different company than Nexstar.
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