Disney’s Bob Iger May Consider Selling ESPN & ABC to Focus on Streaming and Resorts
Key Takeaways
- In an interview with CNBC’s David Faber at Allen & Co.’s annual conference in Sun Valley Idaho, Bob Iger expressed interest in selling traditional TV assets and refocusing on streaming
- He also indicated that some of the KPIs analysts have been using to gauge the strength of Disney’s parks don’t give the full picture
- Disney extended Iger’s contract through 2026
On Thursday, Bob Iger spoke with CNBC’s David Faber in a lengthy interview about his vision for Disney’s future, the challenges the company faces, and the progress he’s made so far during his time in charge.
Disney stock (NYSE: DIS) has been in decline since early 2021. In November 2022, former-CEO Bob Iger came out of retirement to lead the company again and replace then-CEO Bob Chapek and try to change the company’s direction.
Iger has high hopes for the future of his company, but will his predictions come to pass and Disney’s stock change course? Or will it continue its steady decline?
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Magic mirror says: TV offloading and streaming service acquisitions may be in Disney’s future
When Bob Iger first came back to Disney, he was “very pessimistic” about the future of traditional TV. In his interview on Thursday, Iger expressed that his initial feelings have been validated during his time as CEO — in fact, he noted that it’s worse than he expected.
As part of his plan to restore the company to its former glory, Iger has been reevaluating the role that Disney’s TV assets, which include ESPN, ABC, and other networks, play in the company. During the interview, he stated that they “may not be core to Disney,” indicating a willingness to sell them off.
On the flipside, Iger is optimistic about streaming, and is planning to acquire the rest of Hulu (Disney currently owns 66% of the platform with Comcast owning the remaining 33%). Iger stated that the Hulu and Disney+ combo will be available by the end of the calendar year.
Disney resorts remain major profit-drivers, according to Iger
Despite widespread concerns about low park attendance and political and legal battles with Florida governor Ron DeSantis, Iger remains optimistic about Disney’s resort business.
Iger said that parks remain a “tremendous business for us,” and that is one of the core components of the business, alongside streaming and movie studios.
He noted that reports of low wait times on July 4 don’t take into account the extreme heat of the day, and that lower attendance recently represents a short-term readjustment post-COVID, not a fundamental problem with the business.
The bottom line
Disney is facing a lot of challenges as it struggles to set its stock on an upward trajectory. Amidst legal battles and the decline of traditional TV, Disney is looking to refocus on its parks and movie studios while also becoming more involved in streaming.
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