July 31, 1995 – The Walt Disney Company and Capital Cities/ABC Announce Their $19 Billion Merger
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“I feel more comfortable with the two companies together.” – Michael Eisner, former CEO of The Walt Disney Company
On July 31, 1995, The Walt Disney Company and Capital Cities/American Broadcasting Company announced plans for a $19 billion merger, which was completed on February 9, 1996. The deal meant that Disney would acquire 9 VHF (Very High Frequency) and 1 UHF (Ultra High Frequency) television stations; 11 AM and 10 FM radio stations; a percentage of ESPN, The History Channel, A&E Network, and Lifetime Television; and a publishing group consisting on 85 trade journals, 18 shopping guides, 2 consumer magazines, 21 weeklies, and 7 daily newspapers – however, most of this publishing group would eventually be sold. With this merger, the broadcasting name of Capital Cities/ABC was renamed ABC, Inc., but the network still uses the name American Broadcasting Companies. Interestingly enough, the president of ABC at the time, Robert Iger, is now the CEO of The Walt Disney Company.
The partnership between ABC and Disney goes back to 1954, when Walt Disney agreed to a regular network television show if they would help invest in the Disneyland project. ABC agreed, providing a $500,000 investment up front, and $4.5 million in loans, making ABC a 1/3 owner of Disneyland. Disney remained on the ABC network until 1961, after buying out ABC’s share of Disneyland. After the merger in 1996, many successful shows appeared on the network, from the Saturday morning cartoon block “One Saturday Morning,” to the smash game show Who Wants to Be a Millionaire?, to dramas The Practice and Alias. The network still continues to find success with recent hits that include Lost, Desperate Housewives, Once Upon a Time, Castle, and Revenge.
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