The Walt Disney Company has initiated its search for an entity to purchase part of ESPN. According to Andrew Marchand of the New York Post, the parent company is looking to find two partners, presumably digital and mobile platforms, to take on ownership stakes to ensure broad distribution of the “Worldwide Leader.” The company is reportedly looking to sell approximately 10% of ESPN. What encompasses that could become more clear once the company divulges its own financial results for the first time.
The palpable scenario of ESPN forging a partnership with Apple could allow the application to be preinstalled on devices, such as the iPhone and iPad. Apple has started its foray into sports media through Friday night Major League Baseball game broadcasts and a 10-year deal with Major League Soccer, which reportedly includes incentives for global phenom Lionel Messi.
The technology company is reportedly expected to inquire about acquiring a share of the National Basketball Association media rights, which expire upon the conclusion of the 2024-25 season. Other platforms that could offer similar benefits include Google and Microsoft, the former of which reached a seven-year deal with the NFL for YouTube/YouTube TV to serve as the official home of NFL Sunday Ticket.
Combining a digital platform of this scope with a mobile distributor, such as Verizon or T-Mobile, presents the possibility of bundling aspects of the ESPN business with service contracts. Verizon reportedly expressed interest in a strategic partnership with ESPN this past summer. With the network engaging in “Project Flagship” to launch its own direct-to-consumer platform, an endeavor expected to be completed in the next two to three years, although the Post reports that 2025 is now most likely. The blend between digital and mobile platforms could prove advantageous in maximizing the breadth of potential dissemination, reaching consumers where they are rather than making offerings more difficult to find.
The network recently inked a multi-year, multimillion dollar contract with Pat McAfee to license 235 episodes of his digital show to its platforms. McAfee’s program produced record ratings within its first month, drawing 1.4 million people per program and 44.5 minutes of average daily viewing time. Its first four weeks across ESPN platforms garnered 242 million total views, demonstrating the power of a multiplatform, broad distribution strategy.
Moreover, Disney and PENN Entertainment are working to unveil ESPN BET, the company’s own sportsbook, within the National Football League season. The 10-year, $1.5 billion deal places ESPN branding across the user interface and contains various performance incentives that have the potential to render the deal more lucrative. Disney had reportedly been resistant to delve into the sports betting space; however, the company’s tune has changed in recent years, leading to the monumental deal. The transaction replaced the Barstool Sportsbook and transferred ownership of the titular entity back to Dave Portnoy, who purchased the company back for $1.
No timeline for a partnership has been reported, nor is it clear if a resolution will be reached ahead of the direct-to-consumer product reaching the marketplace. ESPN refined its executive leadership team under chairman Jimmy Pitaro earlier this year, instituting Burke Magnus as president of content and Rosalyn Durant as executive vice president of programming and acquisitions. Tina Thornton oversees content production and operations, and is also reportedly assuming marketing responsibilities from Laura Gentile ahead of her exit from the company at the end of the month.
