Disney CEO Bob Iger did not rule out selling off some of the entertainment giant’s linear TV assets in an interview on CNBC Thursday, as the company struggles to transition from the traditional television model to streaming.
Disney CEO and Chairman Bob Iger speaks at a 2022 event in Beverly Hills, California. (Photo by ... [+]
Disney owns a number of TV properties including broadcaster ABC and cable networks like National Geographic and FX, which Iger left open the possibility of selling.
Iger said the properties “may not be core to Disney” and that the company would be “objective” about their future—though he didn’t explicitly say the networks would be sold.
Iger, who previously worked as a senior ABC executive, said linear TV “clearly is a business that’s going to continue to struggle” and the business model is “definitely broken.”
However, Iger made an exception for ESPN, the sports media giant Disney has owned since 1996, saying “we’re looking at (ESPN) very differently.”
He explained that many of the transformational forces brought by new technology that have rocked the television industry have had a much different effect on ESPN, which he said actually benefited from the changing industry.
Iger’s interview on CNBC comes the morning after Disney announced it was extending his contract by two years through 2026. Iger first became CEO in 2005, but retired from the position in 2020. However, after a tumultuous two years with Bob Chapek as CEO that ended when Disney abruptly ditched him, the company brought Iger back into the fold. Iger officially returned as Disney CEO in November. His extension was hailed by analysts as a positive for the company. Bank of America analysts led by Jessica Reif Ehrlich wrote in a Thursday note to clients that Iger's "focus on more efficient content spend bodes well for future profitability.” The analysts cited Iger’s recent decisions to raise the price of Disney+ and make $5.5 billion in cost cuts, among others, as reasons for their assessment.
“I think what I’m saying is it’s time,” Iger said in the interview. “After coming back, I realized the company is facing a lot of challenges, some of them self-inflicted.”
Iger also discussed the ongoing Writers Guild of America strike and another possible strike by the actors’ union SAG-AFTRA, calling the strikes “very disturbing.” He said the writers and actors are “not realistic” and “are adding to the set of the challenges that this business is already facing that is, quite frankly, very disruptive.” He claimed Disney negotiated a “very good deal” with the Directors Guild of America and wanted to do the same thing with the writers and still hopes to with the actors, but they couldn’t agree to reasonable terms. He called the strike a “shame” that will “have a very, very damaging effect on the whole business” and have collateral damage to supporting industries.
Disney could soon sell its TV assets as Iger says business ‘may not be core’ to the company (CNBC)
SAG-AFTRA Strike May Be Imminent As Actors’ Contract Expires Without Deal (Forbes)
Robert Iger Returns As Disney CEO After Successor Bob Chapek Is Ousted (Forbes)