Disney’s linear networks including ABC ‘not for sale’, says CEO Bob Iger

Ahsoka (Source: Disney+)

Disney CEO Bob Iger has said the company’s linear networks such as ABC and FX are “not for sale”, rowing back on comments made earlier this summer that led to investors bidding for the assets.

During an interview at the Sun Valley media conference in July, Iger said that networks such as ABC, FX and Nat Geo “may not be core” to the Mouse House, with investors including Byron Allen subsequently exploring an acquisition of the brands.

However, during a discussion at the NYT DealBook Summit, Iger said his comments had been misinterpreted.

Iger ‘testing’ sentiment on Disney networks

The exec said he had mooted the future of the networks because he was “looking for a reaction to my own thought process” and wanted to “test that process in public”, particularly to gauge investor sentiment.

Bob Iger

“It was a means of me saying to Wall Street… that our heads were not in the sand about the challenges facing those businesses,” he continued, adding that he did not want to appear as “an old media executive”.

“Our company had already shown the ability to basically adapt to new circumstances. I wanted to convey that and see what the reaction would be… I did not say they were for sale. The coverage of what I said said they were for sale.”

Iger added that the future of the networks was being closely scrutinised, as were all part of the business, and questions were being asked about whether they “will they stay the same or possibly decrease in value? And if so, what do we do about it?”

The Disney CEO added that the linear networks are now being run “more efficiently” than when he made the initial comments in July, adding that linear nets can also be used “in partnership” with streaming.

While a sale of the linear networks may now be off the table, the segment continues to drag. Earlier this month, the Mouse House’s Q4 resuots showed that revenue from its linear division had dropped by 9% on the prior-year quarter, down to $2.6bn from $2.9bn in 2022.

Disney said that domestic operating income losses were driven by a drop in advertising revenue primarily at the ABC Network and as a knock-on effect of the strikes.

Iger, who used his appearance to also confirm plans to step down in 2026, was speaking as the Mouse House added Morgan Stanley CEO James Gorman and former Sky topper Jeremy Darroch as new directors.