Hello everyone. We need one more update to close some loose ends regarding Disney, ESPN, and Apple. The update kicks off with an examination of Iger’s comments to CNBC regarding ESPN. We then turn to ESPN’s potential value and one difficulty found in valuing the subsidiary. The discussion then turns to Neil’s thoughts on a potential Apple/ESPN partnership, including what each company would bring to the table and what such a partnership would look like.

Let’s jump right in.

Parsing Iger’s ESPN Comments

As we discussed yesterday, Iger sounded relatively upbeat about ESPN in his interview with CNBC’s David Faber at Sun Valley. However, Iger admitted that ESPN needed work with the big one being a shift to direct to consumer.

Iger wouldn’t comment on timelines for such a shift other than to say he’s “much more certain about when.” Disney can’t prematurely announce such a move without upsetting its legacy business. There are also media rights deals to consider.

Here's a key exchange between Iger and Faber about ESPN:

“IGER: We’ve had a great business [with ESPN], and we want to stay in that business. That said we’re going to be open minded there too. Not necessarily about spinning ESPN off, but about looking for strategic partners that could either help us with distribution or content, but we want to stay in the sports business.

FABER: What would a strategic partner look like with distribution or content then for ESPN?

IGER: Well, I think you could again, I’m not gonna get too detailed about it, but we’re bullish about sports in general as a media property.”

Iger’s comment about someone helping ESPN with content stood out to me. The chatter has been focused on ESPN’s media rights for the NBA. It’s a critical deal for ESPN and the rights expire after the 2024 to 2025 season. Iger is likely

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