What happens if ESPN loses Money?

SPORTS MEDIA

With concerns about ESPN subscriber numbers weighing on Disney’s stock this year, RBC in a note has stated Disney “should consider divesting the sports network because such a move would create value,” according to CNBC’s Carl Quintanilla, who noted RBC also suggested “spinning off ESPN into a separately traded public company, selling the network in a taxed transaction.” Quintanilla said the report is about how ESPN “used to be considered the crown jewel, now it’s considered a liability.” CNBC’s Jim Cramer said Wall Street believes “ESPN is now pulling down Disney stock.” CNBC’s David Faber said somehow ESPN has become an “overhang” for Disney “as opposed to a huge benefit” (“Squawk on the Street,” CNBC, 12/5). BARRONS’ Alex Eule noted the issue is that “cord cutting seems to be weighing on ESPN’s business.” ESPN charges cable companies “far more than any other channel” (BARRONS.com, 12/5). Quintanilla said for Disney, live sports have become a “liability when you compare it to movies and parks and products.”  Elevation Partners co-Founder Roger McNamee said, “The world has, in fact, changed and now the leagues are in charge of their own broadcasts and that makes ESPN’s role a lot less valuable than it was before Major League Baseball figured out how to present all of its games directly to fans. … ESPN’s outlook is really significantly less interesting than it was. –Sports Business Journal, Read More

http://www.sportsbusinessdaily.com/Daily/Issues/2016/12/06/Finance/ESPN.aspx

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