ESPN and the NFL announced a deal Tuesday that will award ESPN the league’s media assets, including NFL Network. The NFL will retain a 10% ownership stake in the network.
The Walt Disney Company is reportedly backing away from plans to spin off ESPN, putting on hold years of speculation that a standalone sports network could help offset the company’s declining cable business.
The decision marks one of the first major calls under CEO Josh D’Amaro, who stepped into the role in March.
“Instead, the sports network will remain within the media giant, which believes its presence will help the move to streaming,” sources said, according to Business Insider.
However, the decision is not permanent, the outlet said. While Josh D’Amaro has reportedly indicated he doesn’t see a path to a spinoff anytime soon, he could revisit the option later as circumstances develop, according to Business Insider.
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A 3D printed Disney logo for the ESPN+ logo July 13, 2021. (Reuters/Dado Ruvic/Illustration/File photo / Reuters)
Additionally, Disney could still explore bringing in strategic partners to take minority stakes, similar to last year’s sale of a 10% stake in ESPN to the NFL.
The decision effectively cools long-running rumors that ESPN might disappear, which first gained traction after former CEO Bob Iger stunned the media industry in 2015 by revealing that the once-profit-generating giant was losing subscribers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 101.47 | -0.88 |
-0.86% |
As viewers have become more selective with their spending in recent years, the cord-cutting wave in the cable industry has accelerated, raising concerns that declining revenue was weighing on Disney’s overall valuation.
By remaining under Disney, sources say the current structure could better position ESPN to accelerate its transition to streaming, Business Insider reported.
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Josh D’Amaro, chairman of Walt Disney Parks and Resorts, speaks during an event on November 9, 2024 in São Paulo, Brazil. (Ricardo Moreira/Getty Images for Disney/Getty Images)
Around August 2025, ESPN became available outside of the traditional cable bundle for the first time, marking a major shift for sports fans who previously had to pay for expensive packages with channels they didn’t want.
Under the new decision, Disney will continue to distribute ESPN across multiple platforms, including the traditional cable bundle starting at approximately $75 per month, a streaming package alongside Hulu and Disney+ starting at $35.99 per month and a standalone direct-to-consumer offering at $299.99 per year.
Fans cheer during an ESPN broadcast ahead of the Super Bowl on Feb. 7, 2025, in New Orleans. (David Buono/Icon Sportswire via Getty Images/Getty Images)
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Disney’s sports segment, anchored by ESPN, generated about $17.7 billion in revenue last year, about 19% of Disney’s total operating revenue of $94.4 billion.
