Media mogul Byron Allen is offering to purchase ABC television network for $10 billion from the Walt Disney Company.
Allen began his career as a stand-up comedian in the 1990s before later founding CF Entertainment, which was later renamed Entertainment Studios. The company eventually generated over $1 billion in earnings.
Disney CEO Bob Iger mentioned that Disney was open to selling some of its television assets. Disney has reportedly lost more than $11 billion since it debuted Disney+ in 2019.
Byron Allen aims to acquire Disney’s ABC TV network, including, FX, & National Geographic, for $10 billion. This offer may adjust based on last year’s earnings, w/ the final bid being 8x the EBITDA. Allen seeks funding & may sell non-ABC local TV stations to avoid conflicts pic.twitter.com/eN9LRBIF5z
— Earn Your Leisure (@EarnYourLeisure) September 15, 2023
The offer to Disney would also include the purchase of cable networks FX and National Geographic.
Allen’s representative confirmed the offer to CBS MoneyWatch.
The offer of $10 billion is based on the networks generating $1.25 billion in earning last year before interest, taxes, depreciation, and amortization.
Many consumers are beginning to use streaming networks instead of traditional television and cable.
Media mogul Byron Allen offers Disney $10 billion for ABC, cable TV channels https://t.co/0D3joPwUuD pic.twitter.com/POs4aknLkO
— CBSColorado (@CBSNewsColorado) September 15, 2023
Disney also has been in talks with other potential buyers, including local broadcaster Nexstar.
The company reported $512 million in losses in the last quarter of 2023 alone.
