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

In a landmark deal that reshaped the media landscape, The Walt Disney Company announced its acquisition of Capital Cities/ABC Inc. in the summer of 1995. The $19 billion merger, orchestrated by Disney's then-CEO Michael Eisner, was a stunning move that combined one of Hollywood's most powerful content creators with a massive distribution network (Review). At the time, it was the second-largest corporate takeover in the nation's history, creating a true entertainment behemoth.

The strategic logic behind the acquisition was synergy. Disney gained control of the ABC television network, numerous local TV stations, and, most importantly, the highly profitable cable sports network ESPN, often called the crown jewel of the deal. This vertical integration meant Disney could now produce a movie or TV show and have a guaranteed network to air and promote it.

The merger provided Disney with a powerful platform to advertise its films, theme parks, and merchandise to millions of American homes daily. In turn, ABC gained the financial backing and creative engine of the Disney empire. The deal set a precedent for media consolidation, kicking off a wave of similar mergers that would define the industry for decades to come.