ESPN and the NFL announced the deal Tuesday, giving ESPN the league’s media assets, including the NFL Network. The NFL will retain a 10% ownership stake in the network.
The Walt Disney Company is reportedly backing away from plans to start ESPN, ending years of speculation that an independent sports network could help undercut the company’s cable business.
The decision marks one of the first big calls under CEO Josh D’Amaro, who stepped into the role in March.
“Instead, the sports network will remain within the media giant, which we think will help its pivot to broadcasting,” sources said, according to Business Insider.
However, the decision is not permanent, said the source. Although Josh D’Amaro has reportedly indicated that he doesn’t see a path to a spinoff in the near future, he may revisit the option as circumstances change, according to Business Insider.
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3D printed Disney logo in front of ESPN+ logo on July 13, 2021. (Reuters/Dado Ruvic/Illustration/File Photo/Reuters)
In addition, Disney could also explore bringing in strategic partners to take a smaller stake, such as its sale of 10% of ESPN to the NFL last year.
The decision put to rest long-standing rumors of ESPN’s possible turnaround, which began to swirl after former CEO Bob Iger shocked the media industry in 2015 by revealing that the once-profitable colossus was losing subscribers.
| A ticker | Security | Finally | Change | change % |
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| DIS | This company WALT DISNEY CO. | 101.47 | -0.88 |
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As viewers have become more selective in spending in recent years, a wave of cord-cutting has accelerated across the cable industry, raising concerns that the decline in business has weighed on Disney’s overall valuation.
By staying under Disney, sources say the current structure could better position ESPN to accelerate its pivot into broadcasting, Business Insider reported.
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Josh D’Amaro, chairman of Walt Disney Parks and Resorts, speaks during an event on Nov. 9, 2024, São Paulo, Brazil. (Ricardo Moreira/Getty Images for Disney/Getty Images)
Around August 2025, ESPN became available outside of the traditional cable bundle, marking a big change for sports fans who had to pay for expensive packages that included channels they didn’t want.
Based on the new decision, Disney will continue to distribute ESPN on multiple platforms, including a traditional cable bundle starting at around $75 per month, a streaming package with Hulu and Disney+ starting at $35.99 per month and a standalone direct-to-consumer offering for $299.99 per year.
Fans are excited about ESPN’s pre-Super Bowl Feb. 7, 2025, New Orleans. (David Buono/Icon Sportswire via Getty Images/Getty Images)
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Disney’s sports division, anchored by ESPN, generated about $17.7 billion last year in revenue, about 19% of Disney’s $94.4 billion in corporate revenue.
FOX Business has reached out to Disney for more information.
