Disney CEO Bob Iger Is Open To Finding A Strategic Partner for ESPN
Disney is open to selling an equity stake in ESPN.
Disney may be interested in exploring a sale of its linear channels, but it still has an interest in keeping ESPN — but with a twist.
During an interview with CNBC, Disney CEO Bob Iger dropped a pretty big bombshell that Disney is open to finding a strategic partner for ESPN. This comes at a time as Disney prepares to move ESPN fully to direct-to-consumer in the near future.
Disney has already held early conversations with potential partners that could improve ESPN by extending its distribution and adding content. Iger however did not name any of the potential partners. The current ownership structure of ESPN is Disney as majority owner with 80%, and Hearst Communications with 20%.
Disney has avoided moving content to ESPN+ due to the fact that sports still sell on linear channels. Disney makes billions through ESPN and that’s all from traditional TV. Disney moving ESPN fully to streaming will take a significant amount of time and effort. Yet, it feels like something that has always been a far-out scenario has gotten suddenly closer.
“The challenges are greater than I had anticipated,” Iger said in the interview. “The disruption of the traditional TV business is most notable. If anything, the disruption of that business has happened to a greater extent than even I was aware.”
With the disruption and decline of traditional TV, it is only a matter of time before Disney decides to make ESPN fully DTC. However, the addition of a strategic partner adds some intrigue. Disney may be protecting itself by adding another partner into the mix. Who could that potential strategic partner be? A sports betting company? Another sports media conglomerate? What about bigger players like Apple, Amazon, and Google? I guess we will have to wait and see.
Disney will report its fiscal third-quarter earnings after the market closes on August 9. Boardwalk Times will be providing comprehensive coverage of Disney’s Q3 earnings.
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Zach Perilstein is the Editor-in-Chief of the Boardwalk Times
