Walt Disney (DIS) -) shares moved higher in early Friday trading after reports suggested media giant Byron Allen launched a bid to buy its ABC television network, as well as other linear cable assets, for around $10 billion.
Disney, which suggested over the summer that it could sell some of its traditional television assets as it looks to pare debt and focus on sports and streaming rights, said it was "open to considering strategic options for its linear business." But it had not made any formal decision "with respect to the divestiture of ABC or any other property and any report to that effect is unfounded."
Allen, a former television personality who has built a sprawling media empire, Allen Media LLC, including ownership of the Weather Channel, is said to have made his $10 billion proposal based on a trailing earnings multiple for the assets of around 8 times.
Dallas-based Nexstar Media is also reportedly interested in the ABC network assets, following comments earlier this week from CEO Tom Carter at a Bank of America media conference.
Disney shares were marked 0.9% higher in early Friday trading to change hands at $85.25 each. Rival media groups Paramount Global PARA and Warner Bros. Discovery WBD were also on the move, rising 3.9% and 3.1% respectively.
Disney CEO Bob Iger, who returned to the helm late last year, is working through sweeping changes for the the media and entertainment giant, including a major cost-cutting drive and a new three-part organizational structure focused on Parks, Entertainment and ESPN.
“While [linear] remains highly profitable, the trends fueled by cord-cutting are unmistakable,” Iger told investors on a a conference call in July.
“Clearly, if we are to do anything significant in terms of strategic direction for our linear networks, we have to keep in mind [the flow of] content for our direct to consumer business, notably Hulu,” Iger added. “Anything that’s to be done would be with an eye toward our growth business, which is streaming.”
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