Disney has done the math on separating its TV networks business, and it appears too messy to be done — at least for now.
The company’s chief financial officer, Hugh Johnston, said Thursday on CNBC’s “Squawk Box” that the “cost is probably more than the benefit” when it comes to separating its TV networks business, given the “operational complexity.”
The future of the traditional TV network business has been top of mind in the media industry. In late October, Comcast executives said they were exploring a separation of the cable networks business. Executives said the process was in early stages and the outcome was unclear.
The cable news bundle, despite still being a cash cow for companies, is losing customers at a fast clip. The industry overall lost 4 million traditional pay TV subscribers in the first six months of the year, according to estimates from analyst firm MoffettNathanson.