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Sirius eyes Disney's ABC Radio unit- Reuters- 7/13/05


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  • Sirius eyes Disney's ABC Radio unit- Reuters- 7/13/05

    Full text available here:

    Sirius Satellite Radio Inc. Chief Executive Mel Karmazin is considering a bid for Walt Disney Co.'s ABC Radio unit, the New York Post reported on Wednesday.

    Both Sirius and Disney declined comment.

    However, Sanford Bernstein analyst Craig Moffett said that he had spoken with a Sirius representative who denied having any appetite for Disney's radio operation, stating that Sirius has no interest in buying terrestrial radio stations.

    "Buying terrestrial radio stations makes no strategic sense for Sirius," Moffett said in a note to clients. "Terrestrial radio is a business that focuses on disparate local markets, while Sirius' business provides a national service. Buying ABC's radio networks equally makes no sense."

    Sirius competes with bigger rival XM Satellite Radio Holdings in the emerging pay-radio market, which offers subscribers 100 channels of music, talk and sports programs, some commercial-free. The services market themselves as alternative to traditional radio.

    Disney has been quietly gauging interest in its ABC Radio business, which owns 72 stations and broadcasts ABC News Radio and ESPN Radio, by shopping it around during the past two months to a number of competitors in the radio industry, sources have said.
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