Could Disney Spin Off ABC?

Reuters is reporting that DISNEY CORP is keeping its options open in regards to the property that is ABC. Bob Iger said on Wednesday that the top U.S. media company was keeping its options open for dealing with TV network ABC and its struggling news division, including a spin-off.

"There are no guarantees in terms of what will remain part of our company and what will not," he said.

"ABC doesn't add a lot of value to Disney's other divisions," Said Alan Gould, an analyst with Soleil Research. But he did not expect Disney to spin off ABC, particularly in light of its recent squabble with Cablevision Systems Corp over fees to transmit its programing.

But, what IF Disney decided to spin off ABC into its own corporation, much like what Viacom did with CBS? What would the new corporation look like?

First off, they would NOT have a sports division to speak of. The would have to get an all new division up and running to handle the College football games and NBA games. ESPN would no longer provide the production of those properties.

ABC would probably get some sort of Radio network. Radio is in the same situation as broadcast TV, so Disney would not feel bad letting those properties go too.

Getting cable properties may be tricky. That is the bread and butter of the TV industry. Subscriber fees from the cable and satellite companies pull in quite a bit of revenue. SOAP net could be a possibility, but no ESPN, Famil Channel or Disney branded channels.

Established properties. CBS got some of the existing properties from Viacom like Star Trek, Hawaii 5-O and other classic series and franchises. Would ABC get the same from Disney? Possible. A new ABC Corp would need assets and a few minor series added on would not hurt Disney.

ABC Studios could be a major sticking point. As Disney Corp as evolved, they rolled all of their TV production into ONE entity, doing away with Buena Vist TV and Touchstone productions. Giving away ABC Studios would mean Disney would have to start all over in the TV Production business.

It would be a tough road if ABC was back on its own again. But, separating the studios from the broadcasters will benefit the consumer.