Byron Allen makes a $10 billion offer to purchase ABC Network from Disney following the end of his deal with BET.

Media mogul Byron Allen has made an offer of $10 billion for Disney’s ABC Network. According to Bloomberg, Allen made the offer as Disney is looking to shed its non-core assets and shift its focus on streaming services.
Allen has offered to purchase ABC's broadcast network, FX, and National Geographic. Disney has also been in contact with Nexstar Media Group about selling ABC and its local news affiliates, although nothing concrete has been established yet.
On Sept. 14, Disney released a statement indicating that no sale has been made, although it did not rule out the possibility of a sale, echoing the sentiments of CEO Bob Iger in July. Iger believes that the current distribution model for linear TV assets is "definitely broken" and that Disney is open to exploring strategic options.

This speculation was further fueled by Allen's offer of $10 billion for the Disney assets. He has the flexibility to adjust the offer based on changes to the models that assume ABC brands will net $1.25 billion before interest, taxes, and depreciation are factored in. Allen reportedly will collaborate with banks and equity firms to complete the deal. To avoid conflicting issues with CBS and NBC, he may have to sell some of the regional stations he owns that are not ABC affiliates.

Allen Media LLC does carry some debt, which may affect Disney's decision to sell. Industry analysts like Evan Young think that Disney's willingness to sell is an indication that it believes traditional TV is about to fizzle out. Young noted, "a sale of ABC tells us that Disney's view on pay TV is that it will soon implode, which to us means applying meaningful discount rates to all linear cash flows."

All in all, it seems that media mogul Byron Allen is looking to make a big move in the industry, as he has offered to purchase ABC's broadcast network, FX, and National Geographic for $10 billion. Disney is seriously considering the offer, as it is looking to move away from traditional TV assets and focus on streaming services. It remains to be seen whether or not Allen's offer will be accepted, and if the sale will be completed.

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