The Walt Disney Company (NYSE:DIS) is in preliminary talks about potentially selling its US TV network ABC to Nexstar Media Group Inc, according to Bloomberg, citing confidential sources.
Media entrepreneur Byron Allen has also entered the fray, submitting a $10 billion bid for ABC, along with local stations and the FX and National Geographic cable channels, the financial news wire reported.
These discussions follow comments made by Disney CEO Bob Iger in July, suggesting the company might divest some of its traditional TV assets due to the growing prominence of streaming services.
While Nexstar's interest remains tentative, Disney has stated it is "open to considering strategic options for its linear business", but no final decision has been made regarding the sale of ABC or any other assets.
Neither Disney nor Allen's representatives responded to requests for comment on the Bloomberg report.
Nexstar, valued at $5.25 billion, owns or partners with 200 stations in 116 markets, covering over two-thirds of the US population.
ABC, acquired by then-Disney CEO Michael Eisner in 1995 for $19 billion, consists of a national television network and eight regional stations.
It has affiliation agreements with approximately 240 local television stations, reaching nearly all US television households.