ABC Soaps: Disney selling ABC?

[Eric83]

If that would be the outcome of this, then by all means, sell it Disney!

[Sylph]

On the other hand... Comcast has a 51% stake of NBC Universal — what changed?

So these equity firms: they're going to buy how much? All?

[Khan]

Here's someone who should make a few phone calls to Disney about the network:

CLICK HERE

[marceline]

Oh, in that case.... LOL!

Anybody got the names of these PE firms?

[DaytimeFan]

As I've said, changes don't happen overnight in business. It would drive the value of the company down instantly. Rather, corporate changes are made slowly and with some deliberate thought. I'll tell ya that I think DAYS landed its renewal because of the Comcast deal, Comcast didn't want it killed because they didn't want to change things too rapidly without evaluating the business model and audience from their own research.

No clue about who the private equity firms are or how much they're going to buy...they'll go for a majority stake, I have the feeling that Disney wants out completely.

[Sylph]

Bbbut! Sometimes a company's value rises the moment you announce positive changes! Like sacking Zucker! No?

[bellcurve]

There's been way too much speculation about the sale for this not to be something Disney is willing to pursue.

The sad, sad thing about all of this is that Disney has raped ABC. They've slashed jobs in the news division, ABC itself doesn't even have a sports division because ESPN(a Disney owned property that I'm sure Disney will retain in the sale) took over it and grabbed several major college sporting events. Without a sports division(and Disney's financial backing to secure high-profile sporting events), ABC is kind of screwed. As much as people like to say it doesn't matter, sports and the revenue from that are very important to the bottom line of a network. And NBC lost money on the Winter Olympics because, as NBC usually does, they bit off more than they could chew.

As far as the soaps are concerned, Disney used soap fans to launch a niche channel that they will likely change the name to and completely rebrand if they even keep it in the Disney family. The reason why ABC soaps have lasted for as long as they have is because Disney replays them on SOAPnet. Without that extra stream of revenue coming in, I can see the new owners looking at their numbers as under performance and either get rid of all of them but one or put them into first-run syndication.

[bellcurve]

I hope Disney doesn't sell ABC. If they do, what will happen to the budget of GH?!

[Khan]

Unless the sale is a "package deal" that includes ESPN, you're right. OTOH, it would be up to whoever acquires the network apart from Disney's other telecommunications holdings to loosen up the old purse strings and rebuild ABC Sports, as well as ABC News, from the ground up. Which could happen, provided, they're smart and hire someone as smart to oversee both divisions.

As for the future of SoapNet: with or without a Disney sale, I don't see SN lasting under its' current brand much longer, I really don't. Since A&E Television Networks (AETN) has acquired Lifetime Entertainment Services, I see Disney rebranding SN as another women's entertainment channel to go after that demographic. Soaps would continue to be replayed for awhile, though, until they are phased out of the lineups altogether.

[DaytimeFan]

Quick changes signal big trouble which causes investors to flee and thus the company's value drops. The problem is that many investors don't know about, for example, execs like Zucker or Frons or Iger or Diller, they just go with a company name. The people who do know those names usually do better in their investments because they understand the details of how deals are done.

But overall, quick changes are never a good idea. Ever. The only thing that can be expected is that if a new owner comes to ABC, changes will come.

You're very right, losing ESPN and the income stream of SOAPNet would be devestating for the ABC soaps. What could be their salvation is an injection of cash and promotion. I imagine that OLTL would die a swift death since it isn't in LA, but that doesn't affect the budget of GH

[marceline]

Anything that results in Frons losing his job gets a thumbs up in my book.

[Sylph]

Bizarro world. First time I've heard this.

[dragonflies]

I think this is going to happen, there was an article about it awhile back

I think this could be good for ABC

[DaytimeFan]

Really? It was the thesis of my economics classes and the way I've invested for decades.

The market likes predictability and safety because those foster growth. Quick changes are upsetting and lead to drops in value.

[Sylph]

I mean, if I buy a company today, surely announcing changes tomorrow is bad.

On 12th May you're appointed Chancellor of the Exchequer, on 24th May you annouce £6.2bn cuts. That's good.

If a company is loosing money, you need to do something. And not like Comcast wait. It's been six months. More than enough to announce the changes. Going back to your old business model (primetime dramas instead of Leno) isn't really... Anything. Of course, I'm talking about thought-out changes, with a clearly outlined business plan. Not change for change's sake.

You say, investors have no idea who Brian Frons is. So if we replace him, who's going to notice?