Bob’s Big Fire Sale
Disney employees are in panic mode.
Or perhaps I should say more in panic mode than usual. Bob Iger is now openly admitting that he’s looking for buyers for some of Disney’s properties. Specifically, it’s cable networks and ABC, although not all of it.
A week ago Iger gave an “unusually candid interview” on CNBC’s The Squawk Box. Where he discussed the possible sale of Disney’s linear assets ABC, Freeform, FX, and the rest of the cable networks Disney picked up from Fox. Disney Channel, Disney Junior, and Disney XD were not on the table.
A few people seem to think that ESPN is on the auction block too but I have severe doubts about that one, (Put a pin in that one).
Mostly this had the employees in those divisions running around shrieking, “THE END TIMES ARE UPON US!!!”
Disney’s Bob Iger was forced to do “damage control” after spilling plans to possibly sell all or part of money-bleeding channels ABC and ESPN, The Post has learned.
Iger, who last week got a two-year extension to run the company after retaking the reins last year, huddled with senior leaders of Disney’s TV properties on Tuesday, according to a source with knowledge.
“Iger met with senior leaders of the television group and reaffirmed his commitment to the value of the business and also ABC News,” the source said, adding that he was doing some “damage control” and “reverting back to the previous talking points.”
The source said Iger’s “undisiplined, off-message” remarks last Thursday sent “shock waves” through Disney, which along with ABC and ESPN also owns FX and National Geographic.
The head honcho told CNBC last Thursday that he did not anticipate the degree to which legacy television networks would be struggling, and that he would be open to selling or spinning off Disney’s cable networks.
He added that he has had discussions with potential investors about buying a minority stake in ESPN, though he would not specify.
CNN first reported Tuesday night that Iger walked those comments back after Disney TV employees felt they were left “in the dark,” having not been told about the CEO’s plans ahead of time — an uncharacteristic move for the professional, straightforward exec who usually sends out a memo or hosts a town hall in advance of big news.
On Tuesday, during the offsite meeting with TV execs, Iger fielded questions and told staffers that the content created by the company’s television production teams is “incredibly valuable to our business,” CNN reported.
“I’m ridiculously passionate about news,” Iger said, according to the person familiar with his comments.
“It’s important to this company,” he added, citing the importance of ABC News to Disney. “We need to figure out how it makes the transition into streaming. And I happen to believe we will endure. It’s too good, it’s too important, and it’s really fun.”
While dumping National Geographic and cable channels that aren’t core makes sense. Keeping part of ABC while selling the rest does not. Unless you are Bob Iger.
This is a guy who tends to do business where his own personal interests lay. And Weatherman Bob started his career in broadcast news and never really lost his interest in it. Besides it gives Disney leverage, politicians have to see themselves on the news regularly or they start to question their own existence. It gives them a solid foothold with the Democrats and some of the squishier Republicans. Get rid of that and Disney has a lot less friends on Capitol Hill.
I am surprised that Disney is willing to part with even a minority stake in ESPN since those contracts float the entire company. Then again, Iger has to be under ironclad instructions from the board of directors to find several billion before the end of the year from somewhere because if he doesn’t the regime that has run Disney into the ground will be expelled.
