Disney, a titan in the media industry, is reportedly making moves that could reshape its television network portfolio. Word on the street is that Disney is considering selling some of its smaller networks, including Freeform and National Geographic, to A+E Networks.
This potential sale is part of a broader strategy to revamp Disney’s operations and focus on its most profitable and valuable channels. The company’s CEO, Bob Iger, hinted at this possibility in an interview earlier this year with CNBC, where he left the door open to selling some of Disney’s TV assets.
Such a decision would align with the company’s ongoing review of its cable networks, aimed at identifying which ones line up with its long-term vision and which might be better off under different ownership.
The Wall Street Journal reports that Disney has completed this review and is now considering a deal with A+E Networks. This deal is intriguing because it would allow Disney to retain partial ownership of the networks being sold, as A+E Networks is a joint venture between Disney and Hearst Communications.
If implemented, this move would enable Disney to reduce the high costs associated with the aforementioned networks while still potentially profiting from them. Interestingly, this approach is reminiscent of AT&T’s strategy with DIRECTV, where it spun off the network but maintained majority ownership.
For Disney, the networks seen as most integral to its future include ABC, FX, and the Disney Channel. The channels are a pivotal part of traditional cable TV and play a significant role in content creation for Disney’s streaming service, Disney+.
The decision to potentially sell networks like Freeform and National Geographic comes at a time when Disney, excluding ESPN, witnessed a 9.1% drop in TV network revenue in the fourth quarter of 2023. By offloading some of these less profitable networks, Disney could mitigate these losses and streamline its focus on more lucrative ventures.
While no official announcement has been made regarding this possible sale, the implications for Disney and the rest of the media landscape are worth keeping an eye on. Unlike Warner Bros. Discovery, which has begun licensing its content to other Max streaming competitors such as Netflix, Iger has categorically denied the possibility of Disney following suit in order to make a quick buck.
Considering that Disney now owns Pixar, Marvel Studios, and Lucasfilm, it’s easy to see why the American multinational would be apprehensive about willingly giving its rivals a share of its competitive edge.
