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Disney should shut down ABC and transfer content to streaming, brokerage says
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Disney should shut down ABC and transfer content to streaming, brokerage says
Sep 23, 2025 6:56 AM

Sept 23 (Reuters) - Walt Disney ( DIS ) should shut down

the ABC network rather than sell it and transfer the channel's

content to its streaming platforms to lower regulatory risks and

unlock higher valuation, brokerage Needham wrote in a client

note on Tuesday.

The recent "FCC intervention has made owning broadcasting

licenses too expensive and too volatile for DIS shareholders, in

our view," the brokerage said.

Disney's ( DIS ) decision to take Kimmel's show off the air last

week added fuel to the debate of free speech in America amid

conservative uproar around the late-night host's comments

surrounding the assassination of right-wing activist Charlie

Kirk.

The suspension came after Federal Communications Commission

Chair Brendan Carr threatened to investigate Kimmel's commentary

about Kirk, sparking questions around regulatory authority as

federal law prohibits the FCC from revoking a broadcaster's

license for negative coverage or other speech the government

dislikes.

Disney ( DIS ) on Monday announced the return of the comedian to

late-night television.

The media firm did not immediately respond to a request for

comment on the Needham note.

ABC is very important for Disney's ( DIS ) audience reach and sports

rights negotiations, even as streaming grows. However, the

business has seen declining performance in recent years,

mirroring industry-wide trends as audiences increasingly shift

to streaming.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by

Anil D'Silva)

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