THB Sidebar: Byron Allen's Math

So… Byron Allen has apparently offered $10 billion for ABC, its owned and operated stations, and FX and Nat Geo.

The theory they have is that this Linear package generates $1.25 billion in operating income annually and the offer is 8x that, potentially adjustable depending on more concrete figures.

So what does that mean about the rest of Disney Linear? ESPN, Freeform, the Disney nets, Lifetime and A&E would generate about $5.7 billion in operating income annually and be valued in a similar offer at $45.6 billion… the vast majority of the value being embodied by ESPN.

Parks, by this standard, would be valued at $27 billion.

Disney DTC/Streaming can’t be valued this way because it isn’t profitable. But it generates gross revenues of about 2/3 as much as Linear at this point. If it becomes half as profitable as Linear is now, that would put the value - under the structure of Allen’s offer - at about $10 billion. Obviously, Disney hope it becomes more profitable than that and worth at lea…