Will CEO Bob Iger and Disney sell an equity stake in ESPN? The latest strategic partners including ABC

Bob Iger, the CEO of Disney, has declared the company’s intent to sell a portion of its equity stake in ESPN. In a move that reflects the changing media landscape, Disney is desperate to turn around the situation occasioned by the continuous decline of cable subscriptions.

During an interview with CNBC, Iger said that the company is searching for a strategic partner that can help transition ESPN to a streaming-based business. He made it clear that the company is not out to sell the network outrightly. Instead, it is interested in finding a partner to help the network grow in the changing market.

Iger said that “the challenges are greater” than he had expected. He recognized the significant extent to which the traditional TV business has been disrupted. He noted that this disruption has happened on a scale he was not even aware of.

ESPN is one of Disney’s most valuable assets. The network has driven enormous revenue for decades. But the changing media landscape is making it increasingly hard for it to remain profitable, with revenue falling by 10% in 2022. More subscribers are projected to leave the network in the coming years after already losing 20 million subscribers over the course of five years.

The trend is not limited to ESPN as WarnerMedia and AT&T have also declared willingness to sell Turner Sports. Iger also expressed his company's desire to sell ABC and other linear TV networks in its portfolio. Major sales like this are a choice companies must make in order to remain competitive as the market becomes more streaming-oriented.

Which companies can partner with Disney over ESPN?

There is a long list of companies that could partner with Disney to revamp ESPN. Apple, for instance, is already established in the streaming market and can gain a lot from ESPN’s deep roots in sports broadcasting.

Another major player in the streaming business which could potentially buy some stakes in ESPN is Amazon. Amazon’s reach in online retailing can go a long way in getting ESPN to the reach of many sports fans. The partnership can also birth a line of ESPN merchandise that can be for sale on Amazon.

There is also the possibility of securing more than one partner to purchase Disney’s stakes in ESPN. In that case, the company can strategically tap into the relative strength of each partner in fashioning a way forward for ESPN.

It may be losing its traditional foothold, but ESPN remains a viable brand that can attract quality partners to steer it into the future.