DIS Shareholders and Stock Info ONLY

[RivShore]

can u find a link to interview? we in DLR, so will have to watch later.

This one should have that part of the interview:

https://www.cnbc.com/video/2023/09/...ke-streaming-economy-and-media-landscape.html

 

[clarker99]

Barry Diller on CNBC this morning with a different take on what to do with ABC - instead of unloading it, lean into it - put your best shows on it and drive more viewers there rather than putting your best shows on streamers which will never be more than a low margin business.

I am on team 'lean into it'. Especially, lean in to the linear/streaming hybrid model (like the Charter deal). Keep those carriage/affiliate fees coming for as long as possible.

 

[Elijah Abrams]

Still hoping for something creative here rather than just a straight purchase - Comcast retaining some ownership, Peacock being folded it, something/anything that will help the treasury being drained to buy it.

Comcast could probably end up acquiring Hulu's Live TV aspect.

 

[Cfabar1]

hard to believe Hulu is worth more than the ABC television network...

 

[RivShore]

Comcast could probably end up acquiring Hulu's Live TV aspect.

That's a possibility, it would give Comcast a quick entry into the Over the Top cable market and would compliment the cable business they have already. Would it be worth much, though?

 

[HokieRaven5]

Summary of the WGA Deal
The following is a summary of the deal terms for the 2023 MBA. It is a simplified version of the Memorandum of Agreement (“MOA”), which contains the full text of the new provisions. The language of the MOA controls in the case of any inconsistency with this summary. Unless amended in the 2023 negotiations, the provisions of the 2020 MBA remain unchanged.

1. Term of Agreement

The term of the agreement is September 25, 2023 through May 1, 2026.

2. Minimums Increases

Most MBA minimums will increase by 5% on ratification of the contract, 4% on 5/2/2024 and 3.5% on 5/2/2025. Some minimums and rates increase less, mostly by 3% each year, while a few rates increase only once or do not increase over the contract. These exceptions are the result of patterns established in the industry.

3. Increased Health and Pension Contribution Rate

The Health Fund contribution on reportable earnings will increase 0.5% in the second year of the agreement, from 11.5% to 12%. The Guild also has the right to divert an additional 0.5% in each of the second and third years of the contract from various minimum increases to either the Health Fund or Pension Plan.

4. Increased Health and Pension Contributions for Writing Teams

Each writer on a writing team employed for a script will receive pension and health contributions up to the relevant cap as though they were a single writer, rather than splitting the applicable cap. In addition, when a writing team is employed on a series, the contribution for each writer on the team will be made on the full weekly minimum instead of one-half of the weekly minimum.

5. Artificial Intelligence

We have established regulations for the use of artificial intelligence (“AI”) on MBA-covered projects in the following ways:

• AI can’t write or rewrite literary material, and AI-generated material will not be considered source material under the MBA, meaning that AI-generated material can’t be used to undermine a writer’s credit or separated rights.
• A writer can choose to use AI when performing writing services, if the company consents and provided that the writer follows applicable company policies, but the company can’t require the writer to use AI software (e.g., ChatGPT) when performing writing services.
• The Company must disclose to the writer if any materials given to the writer have been generated by AI or incorporate AI-generated material.
• The WGA reserves the right to assert that exploitation of writers’ material to train AI is prohibited by MBA or other law.

6. Improved Terms for Screenwriter Employment

• Guaranteed 2nd step: A second step is required whenever a writer is hired for a first draft screenplay for 200% of minimum or less, including original and non-original screenplays. The requirement also applies to spec purchases.
• Accelerated payment structure for flat deals: Screenwriters hired on a flat deal basis for 200% of minimum or less must be paid 50% of their fee on commencement. If the writer has not delivered within 9 weeks of commencement, 25% of the fee is payable upon invoice. The final 25% is due on delivery of the step.
• Streaming features: When a feature-length project is made for streaming with a budget of $30 million or more, the minimum initial compensation for a story & teleplay is $100,000 (an 18% increase from the current rate) and a 26% increase in the residual base. Combined with the foreign residual improvements described below, this results in a 3-year residual of $216,000 for projects on the largest services, a 49% increase from $144,993 under the 2020 MBA.

7. Improved Terms in High Budget Subscription Video on Demand (HBSVOD)

• Increased foreign streaming residuals:Foreign streaming residuals will now be based on the streaming service’s number of foreign subscribers for services available globally, amounting to a 76% increase (including a 2.5% base increase) to the foreign residual for the services with the largest global subscriber bases over 3 years. For instance, Netflix’s 3-year foreign residual will increase from the current $18,684 for a one-hour episode to $32,830.
• Viewership-based streaming bonus: The Guild negotiated a new residual based on viewership. Made-for HBSVOD series and films that are viewed by 20% or more of the service’s domestic subscribers in the first 90 days of release, or in the first 90 days in any subsequent exhibition year, get a bonus equal to 50% of the fixed domestic and foreign residual, with views calculated as hours streamed domestically of the season or film divided by runtime. For instance, projects written under the new MBA on the largest streaming services would receive a bonus of $9,031 for a half-hour episode, $16,415 for a one-hour episode, or $40,500 for a streaming feature over $30 million in budget. This bonus structure will take effect for projects released on or after January 1, 2024.
• Streaming Data Transparency: The Companies agree to provide the Guild, subject to a confidentiality agreement, the total number of hours streamed, both domestically and internationally, of self-produced high budget streaming programs (e.g., a Netflix original series). The Guild may share information with the membership in aggregated form.
• Premium for Pilot & Backup Scripts: 150% pilot premium and 115% backup script premiums will now apply to programs made for HBSVOD.

8. Minimum Terms for Advertising-Supported Streaming (AVOD)

High-budget programs made for ad-supported streaming services (including FAST) get the same initial compensation terms as the equivalent programs made for subscription streaming services, including network primetime script fees for the highest-budget series, as well as protections like span (using the basic cable span cap of $375,000) and premium rates for pilots and backup scripts. These programs will also receive a 2% residual for reuse on the AVOD service.

9. Increased Compensation for Series Employment: Weekly Pay and Staff Writer Script Fees

• Weekly Pay Increases: The minimum weekly rates for staff writers and Article 14 writers (story editors/executive story editors) will increase by the overall minimum increases (5%-4%-3.5%). The increases for staff writers go into effect immediately; and those for story editors/executive story editors go into effect the Sunday after ratification.
• Writer-Producer Weekly Rates: There will be a new writer-producer tier (co-producer level and above) that has a higher minimum weekly rate, amounting to a 9.5% premium over the story editor/executive story editor rate. These rates will go into effect for new seasons that start 60 days after ratification.
  

  Writer-Producer Weekly Minimums
  Term of Employment	Year 1
  Up to 9 weeks	$11,371
  10-19 weeks	$9,476
  20 weeks+	$8,524

• Development room premiums: Writers of any title working in pre-greenlight rooms of at least 3 writers—including a pre-greenlight room between seasons of a show—will be paid premium rates up to guarantees of 19 weeks. If writers are guaranteed 20 weeks or more the premium doesn’t apply. The development room rates will be 25% above the highest regular room rate. These rates will go into effect for new contracts beginning November 1, 2023 assuming ratification in October.
  

  Development Room Premium Rates up to 19 Weeks
  Title	Year 1
  Staff Writer	$6,959
  Story Editor/Executive Story Editor	$12,978
  Writer-Producer	$14,214

• Staff Writer Script Fees: Staff writers must be paid script fees for the episodes they write.

10. Staffing and Duration Provisions for Episodic Series

Development rooms (aka pre-greenlight rooms) and regular writers’ rooms for television and HBSVOD series will now have requirements regarding the minimum number of writers who must be hired and the duration of their employment. These new provisions go into effect for seasons where the first episode is written after December 1, 2023 assuming ratification in October.

• Development rooms: Once 3 writers are convened before a series order, at least 3 writer-producers (including the showrunner) are guaranteed 10 consecutive weeks of employment.
  
  Development rooms where writers are guaranteed 20 weeks of work or more are treated as post-greenlight rooms. For these rooms on first season shows, the minimum staff size required will be 3 writer-producers (including the showrunner). For these rooms in the second or subsequent season of a show the required minimum number of writers is determined by the anticipated episode order.
• Post-greenlight rooms:The following requirements are triggered depending on the number of episodes ordered, unless a single writer is engaged to write all episodes:
  

  # of Episodes	Minimum # of writers in writers’ room	Minimum # of Writer-Producers in writers’ room
  6 or fewer	3	3
  7-12	5	3
  13+	6	3

  The minimum staff must be guaranteed at least 20 weeks or the entire duration of the post-greenlight room, whichever is shorter. If there was a development room, the two writer-producers who worked in the development room must be hired for the writers’ room. Weeks worked in the development room can be credited against the guaranteed weeks in the writers’ room, but development room compensation cannot be credited.
• Writers in Production: For single-camera series made for HBSVOD and Pay TV that are exclusively filmed in the US and Canada, 2 writer-producers must be employed for the lesser of 20 weeks of production or the duration of production along with the showrunner. The two writer positions can be used for more than two writers provided that the total weeks worked by the additional writers adds up to the minimum required number for each position.

11. Improved Options, Exclusivity, and Span Protections

• The salary limit under which options & exclusivity protections apply will increase from $325,000 to $350,000 as of May 2, 2024.
• Span protections will be expanded to cover more writers working on short orders, by increasing the cap on earnings from $400,000 to $450,000 (Basic Cable remaining at $375,000), and by extending span protection to writers on limited series, for contracts made 30 days after the ratification date.

12. Appendix A Series Made for Subscription Streaming Services

• Comedy-Variety, Quiz & Audience, or Other Non-Dramatic programs with budgets at or above $600,000 for a half-hour or $1.15 million for a one-hour show that are made for subscription streaming services will have weekly initial compensation minimums like television. Projects with four episodes per week have lower breaks; for instance, Comedy-Variety strip shows have budget breaks of $150,000 for 30-minute show, $250,000 for 60-minute.
• Comedy-Variety series employment will get the aggregate minimum compensation in addition to weekly minimums. Comedy-Variety series with 13 programs will get 13-week guarantees; shorter orders may have shorter guarantees by applying for a Guild waiver. Quiz & Audience and Other Non-Dramatic series have weekly minimums, though 13-week guarantees are not required.
• The Guild has the right to negotiate initial compensation terms and residuals for existing Daytime Serials that move to subscription streaming services in the same fashion as it negotiates for Appendix A and low budget dramatic shows on Basic Cable.
• All high budget Appendix A programs will receive a residual of 1.2% of the license fee for use after the first 26 weeks.

13. Showrunner Training Program

We reached an agreement to renew $250,000 in annual funding for the Showrunner Training Program.

14. Additional Arbitrators

We agreed to replace three arbitrators on the panel to hear MBA claims in Los Angeles.

15. Tri-Guild Audit Program

We renewed funding for Tri-Guild auditing of residuals payments for the term of the agreement.

16. Other Changes (Company Proposals)

• We agreed to increase the number of episodes on new made for broadcast series that can get a single free “promotional” run from 2 to 3, but with the number of episodes capped at no more than 25% of the season;
• We agreed that the companies can exhibit a longform program made for HBSVOD in theaters for not more than 8 days, at least 40 days after the program’s release on the original streaming platform, for 3% of accountable receipts;
• We agreed to a 3% increase in the thresholds for payment of the 1.2% residual for foreign free television reuse;
• We agreed to allow a company to credit a sole writer/director or writer/producer of a project as “produced by” or “presented by” in publicity releases or advertising without a separate writing credit;
• We agreed that interest isn’t due when writers haven’t provided the information necessary to process payment.

 

[clarker99]

hard to believe Hulu is worth more than the ABC television network...

One of the articles said ABC makes an Operating income of $575m/yr (trying to find it to post link).

Hulu is generating ~$3B/year above its programming and operating costs.

 

[OKW Lover]

hard to believe Hulu is worth more than the ABC television network...

I suspect that some folks see the future in the streaming world rather than the old terrestrial world

 

[Cfabar1]

I suspect that some folks see the future in the streaming world rather than the old terrestrial world

True, but Hulu is essentially a shell... Although I suppose you could argue the same about ABC....

 

[wabbott]

https://variety.com/2023/biz/news/streaming-innovation-alliance-netflix-disney-max-1235735932/

Sep 26, 2023 12:57pm PDT
Netflix, Disney, Max and More Team to Form Streaming Innovation Alliance Lobbying Group
by Todd Spangler

A new trade group — the Streaming Innovation Alliance — brings together Netflix, Disney, Warner Bros. Discovery, Paramount and other players to promote their interests to politicians and government entities. It marks the first time competing streaming-video providers have banded together in a unified lobbying front.

The launch members of the Streaming Innovation Alliance (website at this link) are: AfroLandTV, America Nu Network, BET+, Discovery+, For Us By Us Network, Max, the Motion Picture Association, MotorTrend+, Netflix, Paramount+, Peacock, PlutoTV, Telemundo, TelevisaUnivision and Vix, Vault and the Walt Disney Co. The SIA will “advocate for federal and state policies that build on the strong, competitive, and pro-consumer market for streaming video,” according to the group.

Companies notably absent from the Streaming Innovation Alliance’s initial roster include Apple, Amazon, Google/YouTube and Roku.

The Streaming Innovation Alliance has tapped two well-known DC leaders as senior advisers: Fred Upton, a Republican who is a 36-year veteran of the U.S. House of Representatives, and Mignon Clyburn, a Democrat who served as acting chair of the Federal Communications Commission.

The group said, Charles Rivkin, chairman and CEO of the Motion Picture Association, played a “leading role” in organizing the SIA. “Streaming provides great value, vast programming choices, and unprecedented options for consumers,” Rivkin said in a statement. “The MPA looks forward to working with the SIA and its members to ensure federal and state policy propels this incredible innovation forward – and doesn’t undermine the value and diversity consumers are enjoying today.”

Clyburn commented, “Streaming services have opened up a new era of progress for program diversity that is bringing relevant stories and options to historically underserved communities at a record pace while opening doors for production jobs to people of color that have been shut for decades. Any policy that drags down streaming would turn back the clock on this vital progress as well.”

Upton added, “The rise of innovative, new video streaming services is an American success story we should celebrate and encourage, not smother with obsolete and ill-fitting rules and regulations designed for completely different technology, products and business models.”

As part of the launch, the SIA released the results of a recent poll finding that 70% of registered voters view streaming services “favorably” or “very favorably,” with approval even higher among younger voters and in communities of color. In addition, by at least a 2-to-1 margin, voters “worry new regulations could require streaming services to collect more data or deter them from offering sensitive programming,” while two-thirds of those surveyed fear new rules will threaten “diverse and independent services the most,” according to the SIA.

 

[wabbott]

https://theweek.com/business/the-bob-iger-saga-and-disneys-next-era​

The Bob Iger saga and Disney's next era​

Who could eventually replace the controversial head of the Mouse House?

By Justin Klawans
9/27/2023

One of the most powerful names in entertainment and media is undoubtedly Bob Iger. The CEO of The Walt Disney Company, Iger retired from his position in 2021 — only to return as the head of the Mouse House less than a year later following the ousting of his successor, Bob Chapek.

Iger was initially at Disney for more than a decade, and his tenure has been marked by large expansions within the company. Under his leadership, Disney acquired billion-dollar tentpole IPs such as Lucasfilm, Marvel, Pixar, 21st Century Fox and more. When it comes to its major money driver — its theme parks — Disney recently announced plans to spend $60 billion on its parks and cruises division over the next decade, which CNN noted is "about twice what it spent in the most recent 10-year period." In 2022, Disney's total assets were valued at an astronomical $203.6 billion, according to Statista.

But behind this success, reports of numerous problems began emerging, many of them linked to financial woes with Chapek and Iger's quest to name an eventual successor to Mickey Mouse's empire. A recent exposè from CNBC's Alex Sherman described recent happenings at the company as "the making of an epic succession mess." What has spoiled the glamour of the Magic Kingdom, and who could replace the 72-year-old Iger when he eventually does step down?

The issues reportedly began almost immediately after Iger named Chapek as his eventual successor. However, while Iger would no longer serve as the company's CEO, he wasn't leaving — Disney announced he would continue in a role as executive chairman "to ensure a smooth and successful transition through the end of his contract."

The plan also allowed Iger to continue to perform many of his prior duties as head of the company — despite the fact that Chapek was now CEO. Disney noted that Iger "would direct the company's creative endeavors," insinuating that he would be allowed to remain in control of Disney's film and television divisions. Chapek, who was previously the head of Disney's Parks, Experiences and Products division, would oversee the company's "business segments and corporate functions," Disney said.

The two men couldn't have been more different, according to Sherman; Chapek "has the outward corporate demeanor of a Midwestern businessman," whereas Iger "holds court around his Brentwood mansion — a short stroll from celebrities, producers, super-agents and other Disney executives."

As time passed following Chapek's takeover, Iger reportedly began pining to return to his seat as Disney CEO over the board's concerns that Chapek couldn't handle the position. Chapek even "confided to a friend that his tenure at Disney was 'about three years of hell,' defined by one overriding theme: his unrelenting fear that Iger wanted his job back," Sherman reported.

Chapek was fired by the Disney board in November 2022, and his concerns about Iger taking his job back came true. The catalyst for Chapek's firing, Sherman told Puck's "The Town" podcast, seemed to be a September 2022 earnings call in which Chapek appeared to downplay the company's declining revenues and stock prices for that quarter. Instead, Chapek reportedly ignored these warnings in favor of talking about the public response to a Disney World Halloween party.

"It wasn't that the results [of the quarter] were bad," Sherman said. "It was that Chapek lost the faith of the senior executives" on Disney's board, adding that the board "felt like [Chapek] was just not listening," and appeared "totally unfamiliar" with the state of the brand.

What role did Iger play in Chapek's ousting? It's hard to say. However, the re-installed CEO of the Mouse House has allegedly "told peers and colleagues he returned to Disney to correct what he sees as one of the biggest mistakes of his career — choosing Chapek," Sherman reported. It appears the market didn't have a problem with Iger reasserting control — Disney's shares reached a two-year high following his return.

When will Iger leave Disney?

Likely not for at least a few more years. Iger's contract was extended by Disney's board earlier this year, which will keep him employed at the Mouse House through 2026. This seems to go against comments that Iger made in 2022 upon reclaiming the reins from Chapek, in which he said he would only stay in the position for another two years while searching for a suitable replacement to take over in 2024.

Following his contract extension, Iger insisted that he was still looking for a replacement despite committing to stay in the role through 2026. "Because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years," Iger said in a statement following his extension. "The importance of the succession process cannot be overstated, and as the board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful transition."

Who could replace him?

The most obvious heirs apparent at one point were Tom Staggs and Kevin Mayer. Staggs worked at Disney for nearly 30 years and once had Chapek's old job as the head of Disney Parks. Mayer was at Disney for over 15 years and led their direct-to-consumer and international platforms.

Both men "had once been tipped as potential successors to Iger," The New York Times noted, but both Staggs and Mayer left Disney after Iger passed them over in favor of Chapek. However, Iger shocked industry insiders when he brought the pair back to Disney in television advisory roles this past August.

His decision to bring them back into the company's fold means Iger could be — and probably is — considering one of them for the eventual top job. While there are other internal candidates, "Mayer and Staggs have to be viewed as possible contenders as well," Fortune reported.

One of these top internal candidates is undoubtedly Dana Walden, currently the co-chair of Disney Entertainment. Walden has oversight over massive portions of Disney's television empire, including ABC Entertainment, ABC News, ABC-owned television stations, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content and Onyx Collective. Another top internal candidate is Josh D’Amaro, who leads Disney's theme parks division.

However, while both Walden and D'Amaro have experience in their collective areas, both have "big holes in their resume that make it more challenging to see them at the top," Forbes reported. Walden has "never worked on the parks & resorts side (which also includes consumer products)," the outlet noted, while D'Amaro "has never run a movie or TV division, at a time when those operations are struggling with secular shifts in their businesses."

At the end of the day, though, Disney's board will have the final say on Iger's replacement — a board that is filled with members "who were effectively chosen by Iger, and mostly have little entertainment background," Forbes added. The fact that the board has effectively put finding Iger's successor on his own shoulders "feels like an abdication of responsibility and illustrative of the company’s ongoing challenge," the outlet said. "Perhaps Iger should focus on building a better board first, to get the help he really needs to work himself out of a job."

 

[wabbott]

Byron Allen On His $10B Offer For ABC And Other Disney Networks: “Capital’s Not An Issue”, But Bob Iger “Is Not Ready” Yet To Pursue Linear Sale​

• Dade Hayes
  September 27, 2023 11:45AM PDT

https://deadline.com/2023/09/byron-allen-abc-disney-tv-networks-bob-iger-1235557491/

 

[RivShore]

The fact that the board has effectively put finding Iger's successor on his own shoulders "feels like an abdication of responsibility and illustrative of the company’s ongoing challenge," the outlet said. "Perhaps Iger should focus on building a better board first, to get the help he really needs to work himself out of a job."

The press seems to come around to the things we say on this thread eventually - Those of us who advocated for voting against all board members said things exactly like this...

 

[Elijah Abrams]

Byron Allen On His $10B Offer For ABC And Other Disney Networks: “Capital’s Not An Issue”, But Bob Iger “Is Not Ready” Yet To Pursue Linear Sale​

• Dade Hayes
  September 27, 2023 11:45AM PDT

https://deadline.com/2023/09/byron-allen-abc-disney-tv-networks-bob-iger-1235557491/

Ugh, this stupid guy again? He needs to back off. No way he should get FX and/or Nat Geo.

EDIT: Or, on second thought, he should buy 20th Century Studios, 20th Television, Searchlight Pictures (the assets, IP, and catalog of those three), FX, and Nat Geo from Disney, and then buy Fox Corp. from the Murdochs (with the exception of Fox News Channel).

 

[wabbott]

Byron Allen On His $10B Offer For ABC And Other Disney Networks: “Capital’s Not An Issue”, But Bob Iger “Is Not Ready” Yet To Pursue Linear Sale​

• Dade Hayes
  September 27, 2023 11:45AM PDT

https://deadline.com/2023/09/byron-allen-abc-disney-tv-networks-bob-iger-1235557491/

Media entrepreneur Byron Allen, one of many parties interested in acquiring ABC and other linear TV assets from Disney, said he has “access to plenty of capital,” and Disney’s internal deliberations are the main factor preventing a formal sale process from starting.

“Capital’s not an issue,” he said of securing financial backing for his $10 billion bid. “I have access to plenty of capital. … There’s trillions of dollars out there looking for a safe place to invest and get it back with a return.”

Allen provided the update during a sit-down at the Code Conference with CNBC correspondent Julia Boorstin. When she asked Allen if he had a specific plan for how the bid would be financed, he replied, “Oh, absolutely,” without going into any details.
https://eb2.3lift.com/pass?tl_click...9801553&ts=1695854966&bcud=5766&ss=7&cb=60071
Earlier this month, word emerged that local TV giant Nexstar Media Group had held talks with Disney about ABC and the company’s eight owned local stations. Allen Media Group, whose holdings include The Weather Channel, local stations and a film and TV production operation is also interested in buying FX and National Geographic Channel.

Rather than financing, Allen maintained that the “real commodity” desired by sellers is “certainty of close,” given the current regulatory and industry landscape. “That’s the magic trick.”

Inside Disney, however, there are also complications, Allen noted. CEO Bob Iger, despite his public observations last summer that linear TV “may not be core” to the company, “is not ready” yet to enter a formal process, according to Allen. Former Disney vets Kevin Mayer and Tom Staggs, who now run Candle Media, were also name-checked by Allen as the key advisors helping Iger sort out all options. Linear TV, of course, is not the only challenge in front of the company, which is also navigating Hulu buy-out talks with Comcast and charting the streaming future of ESPN.

“These legacy companies are trying to reinvent themselves,” Allen said. “It’s like they’re trying to build a new airplane mid-air while they’re flying their old airplane, in a publicly traded entity. This is a very challenging thing to accomplish. Bob is excellent at what he does, he’s phenomenal, he’s the best person to do it, but whoa, they’re asking him to do something that has not occurred in the last 100 years.” In looking to remove linear networks from the most synergistic media company of modern times, Allen said, is forcing execs to confront the question of “How do you de-couple it? How do you pull it out of their ecosystem? Because it’s really integrated into everything Disney. That’s the hard part.”

Assuming a sale process is able to start, Allen vowed, “I’m going to chase it down like a lion chasing a gazelle.”

Competitively, Allen argued, he enjoys some clear advantages. Anyone looking to take on the ABC stations, he noted, would have to be sure not to exceed federal limits on station ownership, which cap it at an overall reach to 39% of U.S. households. Nexstar is at that level, as are many other station owners. AMG is not, Allen said.

Private equity or tech suitors, meanwhile, could run afoul of regulators in other respects.

“Washington, DC has made it very clear they’re not interested in private equity and hedge funds buying this type of asset, a national news service, and operating it,” Allen said. Last May, private equity firm Standard General abandoned its $8.6 billion bid for major station group Tegna after regulators applied scrutiny to its post-merger plans for the company. Although P.E. firms will likely continue to have a role in local media as minority investors, Allen said, “DC is not impressed with the way private equity and hedge funds handled newspapers and accelerated their demise. So, good luck going in there and buying platforms that deliver 80% of the news to America.”

Allen said his interest in ABC and the owned stations dates back nearly a decade. “I’d been stalking Disney for a while,” he said, noting that the company’s dimming enthusiasm for local TV “hit my radar” in 2014 when the company declined to make an offer for WJLA-TV in Washington, DC. (Sinclair bought it instead as part of a $985M transaction). Citing a relationship with Iger dating back to his early days as a stand-up comedian when Iger was still a rising junior exec at ABC, he affirmed that his offer would be given full consideration. “They know I’m real,” he said. “They know it’s sincere.”

Boorstin noted that Allen had made multi-billion-dollar offers for Tegna as well as for a stake in BET and related assets owned by Paramount Global. The first bid did not bear fruit and the second failed to advance because Paramount reversed course and decided to retain full control.

Another contrast noted by Boorstin concerned the negative commentary surrounding linear by Disney and Allen’s insistence that linear TV is “a great business.” That same contrast existed in 2018, when Allen paid $300 million for The Weather Channel, which had been owned by a series of private companies, which grew disenchanted with it. “They were saying, ‘Take it, take it.’ Gave us a great price because they were constantly talking about the decline and the demise of linear television. I said, ‘No, I think you’re reading it wrong.”

Since the acquisition, Allen said top-line revenue and EBITDA have both increased for the network. Because AMG is a private company, it is not required to publicly disclose financial information.

Allen said he had been “stalking” Disney for the local stations since at least 2014. That year, WJLA in Washington, D.C. was sold after 40 years of ownership. After Allen said Disney did not look at making an offer, Sinclair stepped in and took over the station. That passivity and the fact the company’s stations have long had reach to just 22% of U.S. households, well below the 39% cap, “told me that they’re not in love with this space.”

 

[wabbott]

https://variety.com/2023/biz/news/byron-allen-disney-10-billion-tv-assets-1235737881/

Sep 27, 2023 12:40pm PDT

Allen Media Group’s Byron Allen Reaffirms His Plan to Bid $10 Billion for Disney Linear TV Assets

Allen Media Group CEO/founder/chairman Byron Allen reaffirmed his interest Wednesday in bidding $10 billion for TV brands from Disney, citing his experience with similar assets in his own portfolio.

“I think broadcast television and linear channels, I think is a great business,” he said in a Q&A at the Code conference in Laguna Niguel, Calif. “It’s a phenomenal business.”

Earlier this month, Allen reportedly offered $10 billion for ABC, eight local TV stations and Disney-owned cable networks FX and Nationa’ Geographic Channel. Disney has not confirmed the offer but has publicly indicated the company is keeping its “strategic options” open. Another company, Nexstar Media Group, has also reportedly bid for Disney linear assets, but only for the broadcast network and the eight stations.
Allen, who spoke passionately about how successful his acquisition of Weather Channel has been since he made it in 2018, told interviewer CNBC correspondent Julia Boorstin that he has an advantage over potential bidders from other sectors that are likely to draw interest that federal regulators would likely scrutinize.

“D.C. is not impressed by the way private equity and hedge funds handled newspapers an deacccelerated their demise,” he said. “So good luck buying platforms that deliver 80-90% of the news to America without someone like me. I don’t see tech companies, they need to stay off the radar.”

He joked, “So I’m prettiest girl at the dance, the best looking you ever gonna see.”

Allen, who has previously futilely bid recently for Tegna TV stations and cable channel BET, said he has been angling for ABC for years, having noted that Disney is well under the cap for ownership of its own stations. Allen said he has been friendly with Disney CEO Bob Iger and has approached him for years about his interest in stations. Allen already owns 27 stations in 21 markets.

As far as the timing of a potential Disney sale, Allen said he believes that Disney is currently focusing on how to extricate the linear assets from the overall company before they can commit to unloading them to any bidder. Once they make that happen, he indicated, “I will chase it down like a lion chasing down a gazelle,” he vowed.

Allen also spoke passionately about his interest in social causes, especially the importance of bring awareness to climate change via Weather Channel coverage.

 

[greeneyedchick]

One of the articles said ABC makes an Operating income of $575m/yr (trying to find it to post link).

Hulu is generating ~$3B/year above its programming and operating costs.

Why doesn't Disney just make Disney+ and Hulu 1 channel (kind of like Paramount and Showtime)? It sounds like combining them would make Disney+ automatically profitable.

 

[HokieRaven5]

Why doesn't Disney just make Disney+ and Hulu 1 channel (kind of like Paramount and Showtime)? It sounds like combining them would make Disney+ automatically profitable.

They mentioned plans to by late this year. It will probably wind up being done once they own all of Hulu, and they’ll start to fully integrate the services. Bob mentioned that during the earnings call in May.

 

[Cfabar1]

It seems to me Iger's plan is more or less to buy Hulu to shut it down/merge it with Disney+.

 

[clarker99]

It seems to me Iger's plan is more or less to buy Hulu to shut it down/merge it with Disney+.

I would be quite shocked if they shut down Hulu or the name. The brand is strong and allows Disney to showcase more adult friendly content under a different banner.

Internationally, the app is already all-in-one. They showcase the more adult content and the non-Disney content under the 'Star' banner.