New CEO Josh D'Amaro has made one of his earliest significant calls by opting to keep ESPN inside Disney $DIS rather than spin it off, Business Insider reported. The sports network will remain inside the media company, which sees ESPN as a pillar of its pivot to streaming.
For years, the prospect of ESPN becoming an independent entity had loomed over Disney without resolution, and the new CEO's call puts that uncertainty to rest — at least for now. Critics of the current structure, including certain investors and analysts, had contended that ESPN's eroding cable revenues were holding down the broader company's stock. People inside the company told Business Insider the door is not permanently closed, though a spinoff is no longer being actively discussed.
Going forward, ESPN will be offered through three distinct channels: bundled within traditional cable, available as a standalone streaming product, and packaged together with Hulu and Disney $DIS+ for subscribers who want a broader entertainment bundle. Minority ownership deals with outside parties remain on the table as well, following the precedent set by last year's sale of a 10% share in ESPN to the NFL, Business Insider reported.