ABC Sale Unfavorable for Disney: Dilution and FCC Regulations at Play, Analyst Says
Portfolio Pulse from Anusuya Lahiri
Walt Disney Co (DIS) is reportedly in preliminary talks with Nexstar Media Group, Inc (NXST) to potentially sell the ABC Network for $4.0 billion or more. However, an analyst from Mizuho sees this potential sale as unfavorable for DIS due to dilution and FCC regulations. Additionally, DIS is likely to cut its target for Disney+ streaming subscribers from its previously provided range. DIS shares traded higher by 0.65% at $85.03 on the last check Friday.
September 15, 2023 | 6:36 pm
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NEGATIVE IMPACT
Potential sale of ABC Network and cut in Disney+ subscriber targets could negatively impact Disney's stock.
The potential sale of ABC Network could be unfavorable for Disney due to dilution and FCC regulations. Additionally, the cut in Disney+ subscriber targets could also negatively impact the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Nexstar's potential acquisition of ABC Network could be challenging due to FCC regulations.
Nexstar's potential acquisition of ABC Network could be challenging due to FCC regulations limiting TV station ownership to 39%, which Nexstar is already at.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80