Needham recommends Disney shutter ABC broadcast network over FCC scrutiny

Disney will be a giant recreational giant ABC broadcasting network And dealing with the financial strike once from trying to sell its subsidiary, an investment company found in its analysis.

Nidham wrote in a client’s memo on Tuesday that the closure of ABC and her broadcasting network will be less expensive and volatile than continuing to own or sell it.

The company said that Federal Communications Committee (FCC), Brendan Car chair on ABC and its subsidiaries, to take Jimmy Kimmel’s offer late at night, then temporarily after the controversial comments made by the comedian about the assassination of conservative activist Charlie Kirk, the broadcast network is not worth.

“We ignore the destructive value of the ABC network and the value of the general policy that was destroyed by the loss of ABC as an independent voice because the intervention of the Federal Communications Committee made broadcast licenses very expensive and very volatile for [Disney] In our opinion, the shareholders wrote, “Nidham.

Jimmy Kimmel in the late night Slams FCC chair for freedom of expression

“We do not recommend that [Disney] Try to sell ABC because this requires FCC’s approval to transfer these licenses. ”The company added.

Nidham said he expects Disney’s revenue growth to increase by 40 to 60 points annually over the next decade, adding about $ 20 billion in the additional value of shareholders while also reducing Federal organizational burdens always.

Moreover, the company estimated that the closure of the ABC radio network would lead to a single -time success ranging between 10 billion dollars and 11 billion dollars, which represents about 5 % of its maximum market, which is more than 200 billion dollars. He added that the market can add the value of the developers to the suspended operations.

Trump calls Jimmy Kimmel’s support from ABC “the contribution of the illegal campaign” for Democrats

Nidham pointed to television scanning data indicating that a small percentage of the United States population is watching ABC and that the average age of his fans is 58 years old, higher than the main demography of viewers under the age of 49, indicating that the network has a few associated advertising revenues.

The company said that instead of running the broadcasting network, Disney can Disney ABC’s Disney Broadcast content On the Hulu broadcast service and ABC, which makes it more valuable from the advertising revenue point of view.

Fox Business has arrived at Disney to comment on Nidham’s note.

ABC’s future with Disney has become a question in the wake of Kimmel’s comments about the assassination of Kirk, which prompted Car to threaten the investigation into the Federal Communications Committee (FCC) in the comment and applause decisions by NexStar and Sinclair, which carry ABC networks in its wallet, to keep the Kimmel program.

Jimmy Kimmel explains Kirk’s comments, he says he “does not aim” to the assassination.

The Chairman of the Board of Directors of the Federal Communications Committee, Brendan Car, supported the resolution of the local ABC company ABC to anticipate the Kimmel offer. (Chip Somodevilla / Getty Images / Getty Images)

president Donald Trump He also suggested that the Federal Communications Committee (FCC) can strip the ABC broadcasting license due to the decision, which prompted the reaction of the preachers of the first amendment regarding the perceived threat to freedom of expression and Free Press.

ABC announced that the Kimmel show will return on Tuesday, although NexStar and Singlair said they would continue to anticipate the offer on each of them in the short term.

Despite the controversy, an industry expert believes that Disney is unlikely to look to closing or selling ABC in the near future.

Emarkter’s vice president of Emarketer said that while the current “Brouhaha” on Kimmel’s offer can prompt the CEO of Disney Bob Eugeger to reassess his plans for ABC.

“I do not imagine a scenario where selling, extinguishing or turning off ABC TV is any time soon.”

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Verna noticed that live sports TV programming is still paying advertising revenues and important subscription to Disney. ABC contributes to reaching Disney fans and sports rights negotiations, given its broadcast network.

Reuters contributed to this report.