Bob Iger, CEO of Walt Disney, resumed his role in late November with the intention of making significant changes to the company, according to Tuesday’s Wells Fargo note. Analysts stated that the shift in the media and entertainment giant’s focus will be towards content and cost efficiency, as well as spinning off ABC broadcast network and ESPN cable sports channel.
The bank believes this will be a beneficial move in the long term, allowing Disney to become a more attractive pure-play intellectual property company. While ESPN has traditionally been the more profitable of the two, trends in linear and sports are diverging from the core IP. Also, the sports network is not owned by IP or globally like Disney, making it a “logical” decision to separate, the analysts said. ESPN is currently 80% owned by Disney and 20% by Hearst Corporation.
The analysts noted that ESPN and ABC are deeply intertwined and should be considered as a single entity…….[read more]
What is the benefit of Disney holding onto ESPN and ABC Television? What is the benefit of selling both properties?
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