Chief executive officer of The Walt Disney Company Bob Iger and Mickey Mouse look on before ringing the opening bell at the New York Stock Exchange (NYSE), November 27, 2017 in New York City.
Getty Images
Usually when a person or company sells something, the primary motivation is getting back as much money as possible.
Disney’s motivation to potentially sell ABC and its owned affiliates, linear cable networks and a minority stake in ESPN isn’t predicated on what these assets will fetch in a sale. It’s about signaling to investors the time has come to stop thinking about Disney as old media.
Disney’s market capitalization is about $156 billion. The company has about $45 billion in debt. Selling assets can help the entertainment giant lower its leverage ratio while buffering the continued losses from its streaming businesses. Disney also could use the cash to help fund its likely acquisition of Comcast’s minority stake in Hulu.
Still, that’s not the prime rationale for why Disney Chief…
2023-09-17 10:31:18
Post from www.cnbc.com
rnrn