Wall St. is debating if Disney will sell ABC, and if so, who will buy it.
According to Reuters, "On Wednesday, the long-debated issue resurfaced after prosecutors charged a secretary to a senior Disney executive and her boyfriend with trying to entice would-be insider traders by claiming they knew the company was in advanced discussions with private equity to sell ABC." [To see the story about those charges, click here.]
Reuters said one analyst, Alan Gould of Soleil Securities, wrote, "Given a reasonable valuation for ABC, we believe the Street would be happy with the sale. We do not believe ABC is strategically critical to Disney and it does not seem to be a business where Disney has a competitive edge."
Indeed, when Bob Iger, Disney’s CEO was asked, in March, about the possibility of Disney selling ABC, he did not rule it out.
Other analysts quoted in the story said selling ABC might prove difficult to accomplish.