Should Disney shut down ABC? This analyst thinks so.

Core Viewpoint - The analysis suggests that Disney should shut down its ABC asset instead of selling it, as this could lead to an increase in overall shareholder value by approximately 10% due to accelerated revenue growth and a higher valuation multiple [2][4][7]. Group 1: ABC Asset Analysis - Disney's ABC asset is currently valued at only 5% of its potential worth if shut down, indicating that maintaining it is detrimental to Disney's overall financial health [3][4]. - The shutdown of ABC would allow Disney to eliminate regulatory concerns, enabling quicker responses to technological changes, particularly in the context of generative AI [5][6]. Group 2: Streaming Strategy - Disney is expected to continue raising prices for its streaming services, including Disney Plus, to compensate for the loss of revenue from linear TV networks [7][8]. - The company is likely to adopt a bundling strategy, offering discounts for combined subscriptions to Disney Plus, Hulu, and ESPN, similar to tactics used by other industries to drive sales [9][10].