Could Disney unload the ABC O&Os?

[CircleSeven 1944]

The New York Post posted this morning that Disney has hired an investment firm to explore a possible sale of ABC's eight television stations. Some sources say that the ABC network itself is not for sale.

 

I just can't see this happening. But you have to look at them being the one with eight TV stations, shorter than the other O&Os, where they have heavy duopolies, I can't see this happening where a Network itself without any O&Os.

[WCAUTVNBC10 408]

Just look at ABC's sister network ESPN and all the staff layoffs and cuts they've gone through this year and you can see why this isn't as far-fetched as you may think.

[swillh2k2 203]

 

The New York Post posted this morning that Disney has hired an investment firm to explore a possible sale of ABC's eight television stations. Some sources say that the ABC network itself is not for sale.

 

I just can't see this happening. But you have to look at them being the one with eight TV stations, shorter than the other O&Os, where they have heavy duopolies, I can't see this happening where a Network itself without any O&Os.

 

Can't imagine they'd be selling ALL of them.

WTVD probably is on the top of the list. Maybe KTRK and KFSN as well?

[TSSZNews 1046]

Who could reasonably afford them though--or not go over the FCC cap? I don't even think Sinclair could attempt that kind of fuzzy math.

[CircleSeven 1944]

 

Who could reasonably afford them though--or not go over the FCC cap? I don't even think Sinclair could attempt that kind of fuzzy math.

 

You know them devils won't get them anyway. Six of the eight are on the VHF dial. The UHF discount wouldn't work in their favor anyway.

[swillh2k2 203]

 

Who could reasonably afford them though--or not go over the FCC cap? I don't even think Sinclair could attempt that kind of fuzzy math.

 

 

 

You know them devils won't get them anyway. Six of the eight are on the VHF dial. The UHF discount wouldn't work in their favor anyway.

 

Sinclair isn't going to buy them. Save yourselves the stress.

[mike91 66]

 

Sinclair isn't going to buy them. Save yourselves the stress.

 

How can you be so sure? They're trying to buy every other damn TV station in the universe.

 

 

 

You know them devils won't get them anyway. Six of the eight are on the VHF dial. The UHF discount wouldn't work in their favor anyway.

 

Maybe another new shell? But, if not them, then who? I just don't see anyone that could buy all of these. Maybe ABC just keeps NY, LA, Chicago and maybe Philly and ditch the rest. It is hard for me to imagine a network getting rid of all of it's o&o's. And if they do, then I would have doubts about ABC's future as a broadcast network.

[LoadStar 363]

What I think this does is put a definitive bullet in the idea that if the Sinclair purchase of Allbritton falls through, that ABC Disney would in any way be interested in purchasing any of it.

[tvjay 6]

 

Sinclair isn't going to buy them. Save yourselves the stress.

 

HAHA, Sinclair would buy EVERY station in America if it could. Who is going to stop them, the FCC? Yeah they are a joke. The DOJ? I am hopefully but I doubt it.

[CircleSeven 1944]

 

HAHA, Sinclair would buy EVERY station in America if it could. Who is going to stop them, the FCC? Yeah they are a joke. The DOJ? I am hopefully but I doubt it.

 

Not if someone else stops them first. If you think that devilish creature so-called mastermind, Massa David, and his other little devils is invincible and can't be stopped, you have another thing coming. One would think that those dirty devils of Maryland would buy every station in the land, but they'll find out in the future that IT has its limits.

[GoldenShine9 1509]

If Sinclair even tried, they would have to give them all to a new empty shell probably, since that would put them at over the 39% cap EVEN WITH the UHF discount (somewhere around 45% with the discount and over 70% without). Their conflicts work against them here for the cap, since they are only in the smallest ABC-Disney markets, so adding 5 of the 6 largest markets would instantly add about 30% coverage or more. Other than piecemeal or a whole new company, I don't think anyone can take them. Either they run into cap issues or don't have the money.

 

The only others that could probably afford them - Gannett, Hearst, and perhaps Scripps if they found an investment firm to help out (being ABC-heavy) - would all go over the cap as well. Tribune might be able to afford them but they would have duopoly issues (although they probably are #5 or #6 stations in their big markets).

 

Speculatron, anyone?

[Jess 1110]

Unfortunately I can see this happening. IIger wants to capitalize on his "Brands" - Disney, Pixar, Marvel, Lucasfilm, and The Mothership. Do I think it'd work? Probably not. Do I think this is a good idea? No.

 

But consider the source -it's The Post. They had a possible disney time warner cover story years ago, pre AOL.

[WCAUTVNBC10 408]

They could theoretically spin the group off into its own entity and then they could forge an affiliation deal to stay with ABC (the top 4 markets wouldn't have much of a choice in the matter either ABC or go Indy). The new group could also go and pick up other stations once its profitable. Hell they can even name the group...wait for it...CapitalCities. Just a thought though.

[tyrannical bastard 3458]

I could see WTVD going to Sinclair or one of their shells....especially considering that WLFL already runs their news.

[GoldenShine9 1509]

 

I could see WTVD going to Sinclair or one of their shells....especially considering that WLFL already runs their news.

 

Not that it matters too much since WRAL dominates ratings in Raleigh.

[TexasTVNews 1366]

I really hope that ABC O&Os keep their stations, but if I had a vote... I would say sell WTVD and KFSN to either SJL Broadcasting, COX, Nexstar, Gannett, or LIN. But NO SINCLAIR!

[mre29 1340]

I could see ABC selling WPVI, WTVD, KTRK, KFSN, and possibly KGO -- to multiple recipients, of course, with a few of them possibly being swapped for WJLA if and when the Sincliar-Allbritton deal falls through.

 

[We really need to move this discussion to the Speculatron.]

[cg41386 131]

 

I could see ABC selling WPVI, WTVD, KTRK, KFSN, and possibly KGO -- to multiple recipients, of course, with a few of them possibly being swapped for WJLA if and when the Sincliar-Allbritton deal falls through.

 

[We really need to move this discussion to the Speculatron.]

 

Uh, why would ABC sell WPVI? Philly is a network O&O market.

[TexasTVNews 1366]

 

Uh, why would ABC sell WPVI? Philly is a network O&O market.

 

You left out San Francisco, also a network O&O market (except KTVU owned by COX and KRON owned by Young).

[cg41386 131]

Oh, I forgot about KNTV. Oops.

[GoldenShine9 1509]

It's probably all or nothing, with the possible exception of WTVD.

 

I'm sure Sinclair would love to get their message out in the top 6 markets, but even if their money tree keeps growing, will the FCC let them?

[NewsMaster 226]

Something told me that this could happen after Disney passed up on WJLA. Hopefully this isn't true, but if it is, I could see Scripps buying all 8 stations and switching KSHB, WPTV and KJRH to ABC, with NBC going to KMBC, WPBF and KOTV. NBC could also go to KWTV in OKC to match KOTV, and CBS could go to KFOR and KTUL. A S******r NBC affiliate just doesn't seem right.

[hathawaynson2 38]

I think that this whole discussion of disney unloading abc owned and operated should be moved to the spectron discussion board.

[24994J 5275]

 

I think that this whole discussion of disney unloading abc owned and operated should be moved to the spectron discussion board.

 

I tend to agree, but the thread's title does makes it fairly clear that this is merely speculative.

[GoldenShine9 1509]

 

I think that this whole discussion of disney unloading abc owned and operated should be moved to the spectron discussion board.

 

Totally agree. I suggested that in my first post.

 

 

Something told me that this could happen after Disney passed up on WJLA. Hopefully this isn't true, but if it is, I could see Scripps buying all 8 stations and switching KSHB, WPTV and KJRH to ABC, with NBC going to KMBC, WPBF and KOTV. NBC could also go to KWTV in OKC to match KOTV, and CBS could go to KFOR and KTUL. A S******r NBC affiliate just doesn't seem right.

 

The cost of a purchase whole of the ABC/Disney group would likely be close to $4 billion, given that they are in America's biggest markets for the most part. With the notable exception of Tribune, conflicts with their own assets are generally not the greatest concern here so much as pushing against the 39% cap, since most of the markets are all O&O's (although Sinclair would have a couple conflicts, while Gannett would have a conflict in Houston).

 

http://www.tvnewscheck.com/article/67641/sinclair-hops-from-sixth-to-third-in-top-30

 

Realistically, any group not in the top 10 in the BIA-Kelsey list would have a difficult time at best affording the package without a huge infusion of outside cash. That creates additional problems though. Gannett would be considerably over (at about 48%) and Hearst also over (at about 43%) before accounting for the UHF discount, but could fit within assuming the discount is accounted for. In the next tier, companies like LIN, Scripps, Nexstar and Cox could fit them in, but likely don't have the resources to do so.

 

As for Sinclair? They would be at about 62% coverage (correction from my previous estimate). Even accounting for the UHF discount, they would be at about 41% coverage. Using shells to evade the national cap is untested and unproven, would they be able to do it?