ABC Sports President Dennis Swanson announced his retirement
yesterday, and in an "expected move," ESPN President Steve
Bornstein has replaced him. In a memo to his department heads,
Cap Cities/ABC President Robert Iger said the company has "long
felt that the two divisions need to have a closer relationship to
better coordinate their goals and activities" (Mike Bruton,
PHILADELPHIA INQUIRER, 4/11). Advertising sales operations for
ABC and ESPN will remain separate (WALL STREET JOURNAL, 4/11).
It is not clear whether Bornstein "will have a formal title with
ABC." Iger said "on matters involving the ABC network," sports
will report to David Westin, President of the ABC TV Network
Group (AP/WASHINGTON POST, 4/11). Swanson will remain on the job
until "early next month" (N.Y. POST, 4/11). The two networks
"will likely function as one at the negotiating table" (HOLLYWOOD
REPORTER, 4/11). Swanson told USA TODAY's Rudy Martzke: "You
shouldn't fear change. These people (Disney) paid $19 billion to
buy Cap Cities/ABC, and they're making some changes. That's life
in our business." Iger credited Swanson with returning ABC
Sports to being a "profitable and well-managed division" (USA
TODAY, 4/11).
TAKING STOCK: Disney stock was down 2 5/8 yesterday to 60
7/8 after Merrill Lynch predicted lower second quarter earnings
due to "difficult film and broadcasting environments" ("Nightly
Business Report," PBS, 4/10).
