Analysts Predict Disney will Part Ways with ESPN and ABC

Bob Iger resumed the position of Disney CEO in November and promised to “make big changes.” Now, according to bank analysts, those big changes will include parting ways with ESPN and ABC. 

Bank analysts assume “Iger will shift the mass media and entertainment company’s focus to content and cost rationalization while spinning off broadcast network ABC and cable sports channel ESPN,” according to FOX. “Spinning off the two networks is the best path forward and a probable late 2023 event, leaving the Walt Disney Company an attractive pure play intellectual property company, the bank predicted.”

This year, the company lost money on Disney+ as subscription prices increased and users became more cost-conscious due to inflation. Additionally, according to CNN, “shares of Disney (DIS) have plunged nearly 45% this year, making it the third worst performer in the Dow in 2022.” 

CEO Bob Chapek was replaced by former CEO Bob Iger earlier this year and there has been much speculation about the changes he will make to improve the company. 

Only time will tell if Disney decides to spin off ESPN and ABC or if the analysts missed the mark.