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This Day In Market History: Disney Buys ABC

This Day In Market History: Disney Buys ABC
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Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day 23 years ago, Walt Disney Co (NYSE: DIS) acquired Capital Cities/ABC Inc. for $19 billion.

Where The Market Was

The Dow Jones Industrial Average closed at 4,715.51 and the S&P 500 traded at 562.93. Today, the Dow is trading at 25,451.06 and the S&P 500 is trading at 2,818.82.

What Else Was Going On In The World?

In 1995, Michael Jordan returned to the NBA after a brief retirement to play professional baseball. The New York Times and Washington Post published the Unibomber’s manifesto, which was 35,000 words in length. The average price of a new house was $113,150.

Media Mega-Merger

ABC started as a radio network way back in 1943, but it had grown into a media giant by the 1990s. When Disney acquired Capital Cities/ABC Inc. in 1995, it took control of the ABC network, 10 television stations, 21 radio stations, an 80 percent ownership stake of ESPN and ownership stakes in various other TV channels and magazine and newspaper properties.

As of 2016, ABC had eight owned-and-operated TV stations and more than 232 U.S. affiliates.

Disney is still expanding its media empire to this day, recently announcing a $71 billion buyout of Twenty-First Century Fox Inc (NASDAQ: FOXA). Disney recently launched its own direct-to-consumer ESPN streaming service and plans on launching a general TV and movie streaming service sometime in 2019.

Related Links:

This Day In Market History: ABC Begins Broadcasting

This Day In Market History: Capital Cities Buys ABC

Image credit: Jim.henderson [Public domain], from Wikimedia Commons

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