Experts warn the network is becoming a liability, with some estimating Disney could save or redirect over $8 billion by pulling the plug on its broadcast operations.

The fallout from Jimmy Kimmel’s controversial suspension has sparked a firestorm of debate inside the walls of The Walt Disney Company — and now Wall Street is weighing in with a dramatic solution: shut down ABC entirely.

That’s right. Analysts are advising Disney CEO Bob Iger to kill off one of the most iconic American broadcast networks to protect the company from growing political and regulatory headwinds.

The stunning recommendation follows weeks of backlash over the reinstatement of Kimmel’s late-night show, which some local affiliates refused to air and which reportedly triggered threats of action from federal regulators.

The suggestion, pitched by two prominent media analysts from Needham & Company, urges Disney to abandon ABC’s over-the-air operations — not sell them, but simply shut them down — while holding onto the valuable broadcast licenses.

The logic? Preserve spectrum assets, avoid entanglements with the Federal Communications Commission, and redirect all content into Disney’s streaming portfolio, including Hulu and Disney+.

“If Disney walks away from broadcast, it walks away from the FCC’s reach,” one insider close to the situation told this newspaper. “This is less about Kimmel and more about control. The company is tired of playing by Washington’s rules when streaming is unregulated territory.”

According to internal estimates, mothballing ABC’s broadcast division would cost Disney an immediate $1.7 to $2.7 billion in lost spectrum value, and another $1.4 billion in annual revenue.

But analysts believe the long-term value — possibly $8 billion or more — could outweigh those losses by insulating Disney from future government interference and the dying economics of linear TV.

The proposal sent shockwaves through Disney’s Burbank headquarters, where Iger has long championed ABC as a foundational brand, despite increasing signs of strain.

Several affiliate stations recently balked at airing “Jimmy Kimmel Live!” following his on-air remarks that critics claim crossed political lines.

Behind the scenes, sources say those same stations have warned Disney that patience is running thin — and that future controversies could trigger wider blackouts.

“This isn’t just about one show anymore,” a senior executive at a major affiliate group said. “There’s a feeling that ABC is becoming a liability — politically, commercially, and culturally. The audience is leaving, and the advertisers aren’t far behind.”

Kimmel’s ratings have cratered in recent years. Once a staple of late-night television, the host has reportedly seen a 77% drop in the key 18–49 demographic since taking over, with a sharp 50% plunge just since January.

Yet his contract remains expensive, and some inside Disney are baffled as to why the company is doubling down.

“Let’s be honest: he’s not funny, he’s not cheap, and he’s not a draw,” said one veteran Disney staffer, speaking on condition of anonymity. “Why are we risking an entire network for a guy who’s in third place?”

The move to reinstate Kimmel despite affiliate resistance has raised deeper concerns — not just among station owners, but also among investors, who worry Disney is allowing Hollywood insiders to dictate programming decisions at the expense of shareholders.

“This isn’t about capitalism anymore,” one analyst commented. “It’s about control. When the Hollywood trades tell Disney to bring back Kimmel and they do it, even if it hurts the business — that’s a red flag.”

Some within the company argue that ABC still holds strategic value. The network plays a critical role in promoting Disney’s broader portfolio — including theme parks, streaming shows, and film releases — through low-cost advertising and high-visibility programming.

ABC also maintains lucrative sports rights deals, including NFL games and shared coverage of the Super Bowl.

“ABC is the megaphone,” one executive insisted. “It might be fading, but it still reaches millions of households. And when we want to move product — whether it’s Disney Cruise Line or a Pixar release — that megaphone matters.”

Others aren’t so sure. With cord-cutting accelerating and streaming becoming the dominant mode of content consumption, the future of broadcast television has never looked more uncertain.

For some, the question is whether Disney should exit now — while ABC’s licenses still hold value — or wait until the decline becomes irreversible.

“Think of it like owning beachfront property during a hurricane warning,” said one media consultant. “You either sell now or risk losing everything in the storm.”

That storm may already be forming.

With talk of new tariffs on foreign-made films floated by former President Donald Trump, and speculation that Hollywood agencies colluded

to pressure Disney over Kimmel, some believe the company is caught in a wider cultural and political war — one that could soon threaten its bottom line.

“If you think this is just about Jimmy Kimmel, you’re missing the bigger picture,” said a former FCC official. “This is Hollywood vs. Washington, and Disney’s stuck in the middle.”

Even with the ESPN streaming launch facing headwinds and Disney struggling to find traction in its digital transition, the ABC question looms large.

Shut it down and lose billions in short-term revenue — or keep it going and risk further affiliate revolts, political interference, and brand erosion.

For now, the House of Mouse is keeping quiet. But behind the scenes, the conversation is anything but calm.

“ABC was once the crown jewel,” said a longtime Disney insider. “Now it’s starting to look like an anchor.”