Disney won’t spin off ESPN, according to new reporting from Business Insider. New CEO Josh D’Amaro has made that call, and for now, it’s not up for debate.
There has been much debate over the years where investors argued ESPN’s declining cable business could hurt Disney’s overall value. D’Amaro disagrees, according to the reporting.
He sees ESPN as a strategic asset — one that fuels Disney’s streaming push rather than weighing it down.
ESPN stays, and the multi-platform strategy continues. Subscribers can access the network through traditional cable, through the Hulu and Disney+ bundle, or as a standalone streaming product. Disney may also seek additional minority partners, similar to its deal selling a 10% stake to the NFL last year.
According to Business Insider, D’Amaro could revisit the decision down the road. But right now, a sale is off the table.
As viewers have grown more selective with their spending in recent years, the cord-cutting wave has accelerated across the cable industry. This has greatly affected ESPN by raising concerns that the declining business was weighing on Disney’s overall valuation. ESPN introduced their own direct-to-consumer platform in fall of last year as a result.
ESPN has not commented publicly on the report.
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