Skip to comments.Disney Insider Trading Scandal Fuels Chatter About ABC Sale
Posted on 05/26/2010 2:03:32 PM PDT by Zakeet
The insider trading scandal that erupted at The Walt Disney Co. (DIS) on Wednesday led to more speculation that the media giant is considering a sale of its ABC broadcast network, although the company denied that negotiations are taking place.
Shares of Disney rose 2.3% to $33.07 Wednesday after reports that Bonnie Hoxie, administrative assistant to Zenia Mucha, the company's head of communications, was arrested in Los Angeles along with her boyfriend, Yonni Sebbag. The two were charged with trying to sell insider information, including word that Disney Chief Executive Robert Iger was in "serious and advanced negotiations with two private equity firms" to sell ABC, but no price had been determined, according to the criminal complaint.
"The reference in the complaint to conversations regarding the ABC Network were and are false," Disney said in a statement.
The company also said it was cooperating fully with the investigation. Representatives for Disney couldn't be reached for further comment.
Even with that denial, the disclosure lent to speculation about a potential sale of ABC that has been garnering attention in the media and on Wall Street in recent months. Several ABC employees say it has become the subject of speculation internally.
For his part, Iger hasn't ruled out the possibility of a sale when asked about it publicly.
The broadcast business has been hurt by an advertising slump amid the recent economic downturn and the rise of digital media, leading many investors to conclude it's an industry that lacks growth prospects and may be facing a permanent decline.
(Excerpt) Read more at online.wsj.com ...
Of course, there may be another reason, besides the recent economic downturn and the rise of digital media, why the broadcast business has been hurt by an advertising slump leading many investors to conclude it's an industry that lacks growth prospects and may be facing a permanent decline.
The Mouse is evil.
Ha ha ha! It couldn't be because the American people are getting fed up with liberal bias & Democrat Party talking points presented to them as "news." No.....
The whole damn shootin match is so incredibly corrupt it boggles the mind.
ABC/Disney is Obama’s channel.
Ditto CNN/Time Warner.
Ditto NBC/MSNBC/CNBC/General Electric scum company.
Ditto Viacom/CBS/MTV/VH 1
Fox/Saudia is only a bit better.
The obviously not guilty suspect!
Possible chance to buy an alphabet nitwork on the cheap alert!
And wouldn’t a buyer like Rush just rub all the libtards the wrong way.
Congress is the only ones allowed to do insider trading..