Disney is just fine with how their ESPN+ digital property is performing. A report from PUCK’s Dylan Byers suggested that Disney was looking to spin off ESPN but CNBC has refuted it.
Byers’ article suggested that Disney CEO Bob Chapek and his advisors were percolating the idea of splitting ESPN off from Disney as its own entity.
“There are now conversations happening regularly at Disney about whether or not to spin off ESPN,” Byers wrote in his article.
Yet, CNBC’s sources say no move is in the works.
“I just spoke to a source close to the situation,” Julia Boorstin said on CNBC. “This person telling that report is inaccurate and that Disney is focused on building the value of ESPN+ for its digital bundle, saying that the company is happy with the role that ESPN+ is playing in its digital bundle.”
The anonymous source’s information falls in line with what ESPN president Jimmy Pitaro said on the Marchand & Ourand Sports Media Podcast this week.
“Beyond exclusive games, we have the ability to simulcast,” Pitaro said on the podcast. “We have the ability to do alternative broadcasts. We have the ability to just move more content to plus. As I sit here today, I will tell you; we like this idea of being multiple things at the same time.”
Boorstin made mention of ESPN’s continued interest in sports betting as well.
“The company has been pursuing further value in sports betting for ESPN,” Boorstin said. “Seeing that as an opportunity to grow both the value of both ESPN+ and the linear networks. So it will be interesting to see what comes of this when the company does report its earnings, but we have no official comment from Disney. Disney does tend not to comment on rumors and speculation.”
The media landscape is changing rapidly, and Disney is at the forefront of said change as they try to stay one step ahead of their competitors.