ESPN Valued at $24 Billion; Disney Seeks Investors for Transition to Streaming, Potential Partners Include Amazon, Apple, Verizon

Disney looks to sell 36% stake in ESPN for streaming transition, as tech firms and sports leagues show interest amid declining traditional TV business.

• Disney is seeking investors to help transition ESPN to a full streaming service, with possible tech company suitors such as Amazon, Apple, and Verizon. Disney owns 80% of ESPN, with Hearst holding the remaining 20%.
• Bank of America valuation reports suggest that ESPN could be worth around $24 billion. Disney is reportedly considering selling up to 36% of its stake in ESPN, while still maintaining majority ownership.
• Potential investors could also include sports leagues such as the National Football League and National Basketball Association, in addition to distribution companies such as Verizon.
• The transition to a streaming service for ESPN is seen as necessary to compensate for the decline in traditional linear TV subscribers and to focus on high-growth streaming. A partnership could also provide an opportunity for a future spin-off of ESPN.
• Despite declining sales and profit, ESPN is still considered to be a strong business and a premier brand. It generated a profit of $2.9 billion for Disney's fiscal year 2022, almost $1 billion more than Disney's entertainment business.

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