NEW YORK (CNN/Money) - Walt Disney Co. is weighing getting out of the traditional radio business, according to a published report.

The New York Post reports the media conglomerate is weighing what to do with its ABC Radio division and that a sale for well over $1 billion is an option. A decision on unit's future is on the top of CEO Robert Iger's "to do" list, according to the report.

The company is "deciding whether (radio) fits with their core businesses. But it's still in the early stages," one source close to the company told the newspaper.

While Disney does not break out the radio unit in its operating report, the Post said that an estimate from trade publication Inside Radio estimates the division had revenue of $435 million in 2004, which would make it No. 3 behind Clear Channel (Research), with radio revenue of about $3.8 billion in revenue last year from radio. Viacom's Infinity Broadcasting unit brought in about $2.1 billion revenue.

But Viacom (Research) is looking at a split up plan that would break off Infinity along with broadcast television networks CBS and UPN, its outdoor advertising business and its Simon & Schuster book publishing division in one company, and its faster growing units, including MTV and other cable networks, the Paramount Pictures movie studio and other assets. The split it expected to be approved soon and could take effect in early 2006.

Clear Channel recently reported that its radio revenue fell 7 percent in the first quarter and that most major radio advertising categories -- such as automotive, telecommunications and entertainment -- were down. It also is eyeing a plan that would spin off its unit that produces live entertainment and sell about 10 percent of its outdoor advertising business.

"All radio companies are challenged right now," one high-level media industry executive told the newspaper, "because there has -- after consolidation -- been very little investment in them. Disney is probably seeing radio as not a core asset when they have to grow their business in the double digits."

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