In August, 1995, in the second-largest takeover in U.S. business history, American Broadcasting Company was acquired by what major entertainment corporation?

In August 1995, the entertainment landscape was dramatically reshaped when the Walt Disney Company acquired Capital Cities/ABC Inc., the parent company of the American Broadcasting Company. This monumental transaction, valued at approximately $19 billion, stood as the second-largest takeover in U.S. business history at the time, surpassed only by the leveraged buyout of RJR Nabisco in 1989. The deal brought together Disney's renowned content creation, including its film studios and theme parks, with ABC's vast distribution network.

The strategic rationale behind this colossal merger was to create a global entertainment powerhouse. Capital Cities/ABC brought with it not only the top-rated ABC television network but also a significant stake in popular cable channels like ESPN, A&E Television Network, and Lifetime Television, alongside numerous radio stations and publishing interests. This combination allowed Disney to integrate its beloved characters and stories with a broad platform for reaching audiences, from broadcast television to cable sports.

This acquisition was a defining moment in the media industry, signaling a trend toward consolidation and the bundling of content with distribution. While the merger was initially hailed as a perfect fit that would create the world's largest entertainment empire, it also presented integration challenges and cultural clashes between the two distinct corporate entities in the years that followed. Nevertheless, the 1995 acquisition fundamentally expanded Disney's reach and influence, laying the groundwork for its continued growth as a dominant force in global entertainment.