Disney Dazzles Wall Street

Pergament says Disney has been focused on profits, cost-cutting and combining businesses, and adds that "we're going to look at the company, because we feel it's an undervalued franchise."

Asked about the ABC Radio deal, Pergament noted that "old-line media needs to achieve economies of scale." When asked about whether we were likely to see more transactions out of Disney, Pergament said he thought that every aspect of the company was being looked at to evaluate the overall asset mix.

In an interview just before the radio announcement was made public, Jack Liebau Jr., president of Disney shareholder Liebau Asset Management, said, "We view the potential radio spin-off as another shareholder friendly action by Bob Iger."

Asked about the stock's performance since Iger formally took the helm some four months ago, Liebau said, "We view the stock as attractive."

Regarding ABC television, Iger said the network is currently enjoying "great upscale demographics," such as being No. 1 in households with income above $75,000 a year, a key group for sponsors.

Iger added that the company feels great about its position heading into the annual advertising commitment process. He also said ABC continues to give Disney the reach necessary to invest in great content, use it with new technology platforms, such as the iPod, and aggressively take advantage of its brands outside the U.S.

On the home-video front, a market that has seen growth slow recently, Iger said he was "bullish about next-generation DVD," which he believes will be "good for our business, great for consumers and something that is going to ignite the marketplace."

Late Monday, Disney shares rose 54 cents to $25.50.