Amid speculation of a potential sale of ABC by Disney, a surprising contender has emerged as the most likely buyer: Nexstar Media Group. Reports indicate that Nexstar, based in Irving, Texas, is currently in talks with Disney to acquire the TV network. While details of the deal remain undisclosed, Nexstar, known for its acquisitions and mergers, has shown a strong interest in expanding its portfolio. Neither Disney nor Nexstar have commented on the negotiations, but in a recent statement, Tom Carter, an adviser to Nexstar’s board, expressed the company’s interest in acquiring more legacy media assets and suggested that taking over the ABC network could be a relatively smooth process.
Nexstar, established in 1996, has an extensive network that reaches over 68% of all US TV households. They own, operate, program, and provide services to 200 broadcast stations across 116 markets. The company holds a majority stake in The CW, a prominent TV network, and also manages TV channels owned by affiliated companies like Mission Broadcasting and Vaughan Media. Additionally, Nexstar has a partial or full ownership in NewsNation, Food Network, Cooking Channel, and the political platform, The Hill. In 2022, Nexstar’s net revenue reached $5.21 billion, marking a 12.1% increase from the previous year. The company has been actively expanding its reach through strategic acquisitions, such as acquiring a 75% stake in The CW and purchasing the San Diego-based KUSI-TV station for $35 million from McKinnon Broadcasting Company. Notable acquisitions include the $4.1 billion acquisition of Tribune Media in 2018 and the $4.6 billion acquisition of Media General in 2017, which prompted a name change to Nexstar Media Group. These acquisitions added a total of 113 additional TV stations to Nexstar’s portfolio. Additionally, through its digital division, Nexstar reaches over 45% of the US internet audience, delivering both local and national news. In March of last year, the company reported serving 133 million visitors on its digital platforms, resulting in 820 million page views.
Bob Iger, Disney’s CEO, recently sparked speculation about the future of ABC and its other stations when he noted that the company’s linear TV business may not be core to its future. If a sale were to happen, it would help streamline Disney’s operations as it faces increasing challenges. Disney’s shares have recently experienced a nine-year low, and the company has suffered losses of over $11 billion in streaming revenue since the launch of its Disney+ service in 2019. In the most recent quarter, Disney reported a loss of $512 million due to over 11 million subscribers canceling their subscriptions, primarily due to price increases and password crackdowns. The theme park business has been a bright spot for Disney, with its Parks, Experiences, and Products division reporting a revenue of $8.3 billion, a 13% increase compared to the previous year. Aside from Nexstar, other potential buyers for ABC include Sinclair Broadcast Group, private equity firm Apollo Global Management, and comedian and media tycoon Byron Allen, who reportedly made a $10 billion offer to acquire ABC, despite its expected valuation of around $4 billion.
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