Disney says to combine two ABC units

LOS ANGELES (Reuters) - Walt Disney Co said on Thursday it would combine two divisions, ABC Entertainment and ABC Studios.

The newly formed unit, to be called ABC Entertainment Group, will be managed by President Stephen McPherson, who had previously served as president, ABC Entertainment.

The company did not announce job cuts in conjunction with the merger, but said in a statement that McPherson would spent the next few months integrating the unit.

An ABC spokesman said, however, that "everything is on the table" with regard to future cost-cutting measures, including potential job cuts.

On Wednesday, Disney sent voluntary buyout offers to 600 executives at its domestic theme parks to cut costs as the U.S. economy weakened. The recession has cut attendance, prompting the company to deeply discount Walt Disney World stays.

Disney said on Thursday that Mark Pedowitz, former president of ABC Studios, had moved into a new role as senior advisor to the Office of the co-chairman, where he will work with Anne Sweeney, co-chair of Disney-Media Networks and president of the Disney-ABC Television Group.

Disney said the new division's primary mandate would be to develop and produce programing for broadcast on ABC.

By making more of its own programing, ABC also would own lucrative downstream distribution and international rights, which become more valuable as television audiences shrink.

ABC has lost about 10 percent of its prime time audience in the 2008-09 season compared with the same period last year, and weak advertising has hit it and other U.S. broadcasters hard....

rest here...http://uk.reuters.com/article/autoNews/ ... RX20090122