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ESPN and the NFL announced a deal Tuesday, granting ESPN the league’s media assets, including NFL Network. The NFL will retain a 10% ownership share of the network.<\/p>\n
The Walt Disney Company is reportedly backing away from plans to spin off ESPN, shelving years of speculation that a standalone sports network could help offset the company\u2019s declining cable business.\u00a0<\/p>\n
The decision marks one of the first major calls under CEO Josh D\u2019Amaro, who stepped into the role in March.<\/p>\n
“Instead, the sports network will stay inside the media giant, which thinks its presence will help its pivot to streaming,” sources said, according to Business Insider.<\/p>\n
However, the decision is not permanent, the outlet noted. While Josh D\u2019Amaro reportedly indicated that he does not see a near-term path to a spinoff, he could revisit the option down the line as conditions evolve, according to Business Insider.<\/p>\n
DISNEY UNVEILS NEW DIRECT-TO-CONSUMER ESPN STREAMING SERVICE WITH $29.99 PRICE TAG<\/p>\n
A 3D printed Disney logo in front of the ESPN+ logo July 13, 2021.\u00a0 (Reuters\/Dado Ruvic\/Illustration\/File Photo \/ Reuters)<\/p>\n
In addition, Disney could still explore bringing in strategic partners to take minority stakes, similar to its sale of a 10% stake in ESPN to the NFL last year.\u00a0<\/p>\n
The decision effectively cools down long-running rumors of ESPN potentially spinning off, which first gained traction after former CEO Bob Iger stunned the media industry in 2015 by revealing that the once profit-generating colossus was losing subscribers.<\/p>\n
Ticker Security Last Change Change % DIS THE WALT DISNEY CO. 101.47 -0.88
\n -0.86%<\/p>\n
As viewers have grown more selective with their spending in recent years, the cord-cutting wave has accelerated across the cable industry, raising concerns that the declining business was weighing on Disney\u2019s overall valuation.<\/p>\n
By remaining under Disney, sources say the current structure could better position ESPN to accelerate its pivot to streaming, Business Insider reported.\u00a0<\/p>\n
DISNEY LOSING $30M A WEEK AS YOUTUBE TV BLACKOUT DRAGS ON, ANALYSTS SAY<\/p>\n
Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, speaks during an event on Nov. 9, 2024, in S\u00e3o Paulo, Brazil. (Ricardo Moreira\/Getty Images for Disney \/ Getty Images)<\/p>\n
Around August 2025, ESPN became available outside the traditional cable bundle for the first time, marking a major shift for sports fans who previously had to pay for costly packages that included channels they did not want.\u00a0<\/p>\n
Based on the new decision, Disney will continue distributing ESPN across multiple platforms, including its traditional cable bundle starting at roughly\u00a0$75\u00a0per month, a streaming package alongside Hulu and Disney+ starting at $35.99 per month and a standalone direct-to-consumer offering $299.99 per year.<\/p>\n
Fans cheer at an ESPN broadcast ahead of the Super Bowl Feb. 7, 2025, in New Orleans.\u00a0 (David Buono\/Icon Sportswire via Getty Images \/ Getty Images)<\/p>\n
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Disney\u2019s sports segment, anchored by ESPN, generated roughly $17.7 billion last year in revenue, roughly 19% of Disney\u2019s total company revenue of $94.4 billion.\u00a0\u00a0<\/p>\n
FOX Business reached out to Disney for more information.<\/p>\n
#ESPN #remain #part #Disney #rumors #pivot #strategy<\/p>\n","protected":false},"excerpt":{"rendered":"
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