Byron Allen's Ambitious $10B Offer For Disney's ABC Network And More

Benzinga · 09/15/2023 10:40

Billionaire media mogul Byron Allen has reportedly made a bold $10 billion offer to acquire a significant chunk of Walt Disney Co's (NYSE:DIS) media empire, including the ABC TV network, local stations, FX, and National Geographic cable channels. 

The preliminary offer assumes that the targeted properties have generated $1.25 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2022. Allen's proposed price reflects a multiple of eight times EBITDA, and he remains open to adjusting the offer based on actual financial performance, Bloomberg reports.

Also Read: Charter CFO Hails Disney Renewal as Triumph for Pay-TV Industry

Allen, known for his diverse media interests and previous acquisitions, plans to collaborate with banks and private equity firms to secure financing for this significant acquisition. To alleviate potential conflicts with other networks, Allen might also consider selling some of the local TV stations he currently owns, not affiliated with ABC.

This move follows a trend of media consolidation, as Allen, a standup comic turned media tycoon, has been actively expanding his media portfolio. In recent years, he has invested over $1.3 billion in acquisitions, including the Weather Channel and multiple local TV stations across the United States.

Disney has also reportedly begun discussing the potential sale with Nexstar Media Group Inc (NASDAQ:NXST).

During a Bank of America conference, Tom Carter, Nexstar's ex-president and current adviser to its CEO and board, expressed openness to acquiring assets from established media companies like Disney.

Disney has not made any final decisions regarding the sale of these assets. The media giant acknowledged considering strategic options for its traditional TV networks but did not confirm any sales at this time.

Price Actions: DIS shares traded higher by 0.71% at $85.08 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.