Media World Rocked By Disney CEO Suggesting on CNBC He May Dump ABC and Other Networks: Put Up a ‘Giant FOR SALE Sign’
The media world woke up Wednesday to a stunning interview on CNBC — where Disney CEO Bob Iger strongly suggested the company’s linear TV networks, including ABC, may be on the block.
Speaking with David Faber on CNBC’s Squawk Box, Iger — who just agreed to a two-year contract extension to remain at the controls of Disney through 2026 — opened up the “transformative” work he’s looking to do before he hands off to a successor.
“Transformative work is dealing with businesses that are no growth businesses and what to do about them, and particularly the linear business, which we are expansive in our thinking about,” Iger said. “And we’re going to look expansively about opportunities there because clearly, it’s a business that is going to continue to struggle.”
Faber stopped Iger to note that he was referring to networks such as ABC and FX and asked directly, “Are you going to look to sell them?”
“We have to be open-minded and objective about the future of those businesses, yes,” Iger replied.
“Meaning that they’re not core to Disney?” Faber asked.
“That they may not be core to Disney,” Iger confirmed.
The CEO added, “The distribution model, the business model that forms the underpinning of that business and that is delivered great profits over the years is definitely broken. And we have to call it like it is.”
Iger made clear that he was not referring to ESPN, which he said is viewed “very differently” by the company. But he strongly suggested that he’s ready to offload ABC, FX, National Geographic, and more.
“There’s a reality to it that we have to come to grips with,” he said. “And we have to come to grips with that now.”
Media and business insiders were stunned by the interview and weighed in on the implications via Twitter:
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