Walt Disney Co. Chief Executive Bob Iger this week announced a “major transformation” for the entertainment media giant, raising a familiar question from Wall Street: What will happen to ESPN? Iger has a special affinity for ESPN, having come up through ABC Sports, which was eventually absorbed into the division. Years ago, Iger cited cord-cutting and its impact on ESPN in an earnings call, which triggered a stock selloff. “By showing ESPN as a stand-alone business — inclusive of all its digital assets including ESPN+ — Disney is likely of the view that the financial future of this business is brighter than the market assumes today,” Swinburne said. If a company is in the traditional TV business, live sports events remain the strongest driver of big audiences that advertisers want to reach.
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