Disney Heads Toward Buyback

Next up on incoming Disney DIS CEO Bob Iger's hit list: selling radio assets, brokering a new deal with Pixar PIXR and buying back shares.

Sources say the Burbank, Calif., company is ready to announce plans to buy back a chunk of its shares, though specifics on the timing and volume of any buyback remain unclear.

Meanwhile, it seems that Iger continues to have the golden touch at the company. Propelled into his new role by outstanding results at the ABC television network, Iger has moved quickly to recast the company's strategy unit and befriend Pixar CEO Steve Jobs. That's a key effort because Iger is trying to get Jobs to renew a distribution deal that expires after next year's release of Cars.

Iger has also managed to make good with two once-peeved former board members who had launched a lawsuit contesting Iger's selection as CEO.

That aggravation out of the way, Iger can now focus on a new Pixar deal and a radio sale, both of which are high on the list of priorities.

Regardless of the fact that its radio stations maintain steady growth on the back of strong franchises like ESPN and ABC News, a sale of the stations and network could generate $3 billion. Goldman Sachs and Bear Stearns are said to be working on a possible radio sale.

Interested parties include Cox Radio CXR, Clear Channel CCU and Emmis Communications EMMS, which is in the process of selling its TV station group. A report in The Wall Street Journal Tuesday also cited Citadel Broadcasting CDL and EntercomETM as likely suitors.

A Merrill Lynch research note two weeks ago said that some type of transaction appears likely.

Asked earlier in the spring about the possibility of selling radio assets, Iger said, "We've been in radio for a long time. It is extremely well-managed. As we've said in the past, we're always open to the possibility of buying or selling [assets] with an eye to improving shareholder value."