ABC / Capital Merger

Stockholders Approve Disney Merger with Capital Cities/ABC

Disney’s initial relationship with the ABC television network began in 1954, when Walt agreed to produce an anthology television series for the network, and in turn they would invest in his Disneyland theme park—a relationship that remained until 1961. Michael Eisner, who once called ABC home and had worked his way up to senior vice president in charge of Programming and Development, would eventually become Chairman of the Board and CEO of Disney. And in 1995, when Disney decided to merge with Capital Cities/ABC, Michael didn’t have to work through a third party. He said, “I dealt directly with ABC because I worked there for 10 years. It was like buying a house from a cousin.” It was on this day in 1996, that stockholders officially approved the agreement to merge Disney and Capital Cities/ABC. Thus, a $19 billion merger occurred, and Disney acquired all or part ownership of more than two dozen television channels, including the History Channel, ESPN, A&E, and Lifetime, 21 radio stations and more than 100 publications of various types.