What's Going On With Disney Stock Friday?

Walt Disney Co DIS stock is trading lower Friday amid reports of the company scrutinizing its television network portfolio. 

CEO Bob Iger has indicated that not all of Disney's TV networks, which include ABC, FX, and National Geographic, are crucial to the company's core. 

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Executives are assessing the long-term value of each channel and considering sales or shifts of specific networks into Disney's joint venture with Hearst, A+E Networks, the Wall Street Journal reports.

The traditional TV network business, once a significant source of revenue for Disney, is challenged by the rise of streaming services and declining viewership. The company is exploring cost-cutting measures across its network of channels to maintain profitability.

Disney values ABC, Disney Channel, and FX due to their content's popularity on Disney's streaming platforms, Disney+ and Hulu. 

Dana Walden, Disney Entertainment Co-Chairman, led the review with Debra O'Connell, who is looking for cost savings and efficiency improvements across the networks and ABC local stations. 

The review has influenced Disney's negotiations, allowing Charter Communications, Inc CHTR to drop less critical channels from its offerings.

Internally, Disney has discussed merging some networks with A+E's portfolio to negotiate better deals with cable companies and advertisers. Despite these considerations, Disney is also seeking a strategic partner for ESPN and is planning its transition to a streaming future, emphasizing its importance to the company's long-term plans.

Price Actions: DIS shares traded lower by 3.06% at $87.58 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.