Disney has no plans to change its TV network portfolio anytime soon

disney has done the math to separate its television network business, and it seems too complicated to do so, at least for now.

The company’s chief financial officer, Hugh Johnston, said Thursday on CNBC’s “Squawk Box” that “the cost is probably greater than the benefit” when it comes to separating its television network business, given the “operational complexity.”

The future of the traditional television network business has been a priority in the media industry. At the end of October, Comcast Executives said they were exploring a spinoff of the cable networks business. Executives said the process was in the early stages and the outcome was unclear.

The cable news package, despite remaining a source of revenue for businesses, is losing customers at a rapid pace. The industry overall lost 4 million traditional pay TV subscribers in the first six months of the year, according to estimates by analyst firm MoffettNathanson.

Disney reported Thursday that revenue from its traditional television networks fell 6% in its most recent quarter to $2.46 billion, while profits at the division sank 38% to $498 million.

His apparent commitment to the segment appears to be a radical change.

Last summer, CEO Bob Iger opened the door to selling his television assets. Iger had recently returned to his CEO role, initiated a broad company restructuring, and was facing an activist investor.

Johnston said during Thursday’s earnings call that shortly after joining Disney a year ago, he began evaluating divestitures. He noted that after “playing with spreadsheets” there was no clear path to value creation after divesting from networking or other businesses.

“I like the portfolio the way it is now. I wouldn’t change a thing,” Johnston said Thursday on CNBC.

Similarly, Fox Corp. Chief Executive Lachlan Murdoch earlier this month noted the complexity of separating the company’s cable television networks, even though it is a much smaller group of networks than its peers.

“From my perspective, I don’t see how we could do that. I think separating part of the business would be very difficult, both from a cost standpoint and from a revenue and promotional synergy standpoint.” Murdoch said on Fox’s earnings conference call.

Warner Bros. Discovery Chief Executive David Zaslav noted during that company’s earnings call last week that despite the package’s challenges, it “remains an extraordinarily important part of our business.” He added that it is “a central vehicle for delivering WBD narratives.”

Iger on Thursday echoed those comments, touting content emerging from the traditional television business and its integration with streaming, which remains central to Disney.

Iger particularly highlighted Disney’s acquisition of Fox’s entertainment assets in 2019 as a source of content to help boost the streaming business. Activist investor Nelson Peltz criticized the deal last year, saying it contributed to eroding shareholder value.

“We specifically mentioned that we were doing it through the lens of streaming, we saw a world where streaming was going to proliferate and we knew we needed not only more content but more distribution,” Iger said Thursday.

He highlighted the 60 Emmy Awards Disney received this year for content including the FX television series “Shōgun,” “The Bear” and “Fargo,” which also appear on Hulu.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC, and is a co-owner of Hulu.