ESPN Exploring Selling Minority Stake to Tech Companies Like Apple, Google; Standalone Streamer Could Come in 2025
It’s hard to say who’s more excited for the eventual creation of a streaming-only version of the ESPN group of networks: fans or Disney. After years of seemingly spinning its wheels on such a product, the speed at which news is coming out about an ESPN standalone streaming product that doesn’t require a cable subscription should at least have viewers convinced that Disney is serious about the venture.
Andrew Marchand of the New York Post has new details about who Disney might be looking to partner with when it does create move forward with the project. Marchand says that the House of Mouse is now expected to team up with one of the big tech companies, like Apple, Amazon, Google, Verizon, Microsoft, or T-Mobile who will serve as a minority investor.
Marchand also said that the company was looking to launch the product sometime in 2025, but no later than 2026. The company will also keep ESPN available on linear TV, so the 72 million people who still have the channel as part of their pay-TV subscription will still have access. Until 2025 or 2026, the best way to stream select sporting events via the ESPN brand is on ESPN+.
Disney executives have been talking about creating a streaming version of ESPN for some time, but it wasn’t until this spring that it reportedly began contacting cable providers and sports leagues about actually doing it. Since then, more details have trickled out; Disney CEO Bob Iger surprisingly admitted last month that he was open to selling off many of the company's linear assets — including ABC, Disney Channel, Freeform, and more — but ESPN will remain in-house.
Disney has also discussed minority ownership of ESPN with major sports leagues like the NFL, NBA, and MLB, but the potential partnership with a tech company makes a lot of sense. Distribution is the end goal for Disney when seeking such allies, according to Marchand. It would be relatively simple for a company like Apple or Verizon to partner with Disney to sell a streaming ESPN subscription with every phone, boosting distribution of the channel and allowing the tech company to co-brand with one of the worldwide leaders in sports.
Amazon is also a logical partner, as it has been investing in sports rights for its streaming platform Prime Video. It’s already the home of national broadcasts of the NFL’s “Thursday Night Football,” and the company is reportedly interested in pursuing a package of NBA games when those rights come up for sale after the 2024-25 season and could become a home for Pac-12 football and basketball games when the conference announces its new media deal.
One partner that likely won’t be in the mix with Disney is Comcast. One Wall Street analyst recently posited that Comcast could somehow include a stake in ESPN in its deal with Disney for the outstanding 33% of Hulu that Comcast currently owns. But the internet, broadcast, and telecom company’s president said during Comcast’s recent conference call to discuss its quarterly earnings report that such a scheme was “very improbable,” so it looks like Peacock will have to keep trying to build its impressive live sports roster for itself.
All options are seemingly on the table for Disney as of now, as Marchand reports that basically every major tech company has at least a preliminary interest in working with ESPN. Disney likely values ESPN in the $40-$50 billion range, so an investment of $4 to $5 billion might be required to get a 10% stake. Now it’s up to Apple, Google, and their competitors to see who fields the best offer to Iger and company.
ESPN+
ESPN+ is a live TV streaming service that gives access to thousands of live sporting events, original shows like Peyton’s Place, the entire library of 30 for 30, E:60, The Last Dance, as well exclusive written analysis from top ESPN insiders. Sports available on ESPN+ include NFL, MLB, NHL, UFC, College Football, F1, Bundesliga, PGA Tour, La Liga, and more.