Report: Comcast Cool To A ESPN Partnership

Comcast Corp. officials quashed the idea that the Philadelphia-based tech and media conglomerate could partner on a deal for ESPN following Walt Disney Co. CEO Bob Iger's comments that the company was seeking "strategic partners" for the sports network and subsequent speculation that Comcast would be a strong fit.

On Comcast's second quarter earnings call Thursday, President Mike Cavanagh said that the company taking a stake in ESPN is "very improbable." The Philly Business Journal reports he noted complications around taxes, minority shareholders and general structuring that could arise between the two media giants if they struck a deal for the "Worldwide Leader in Sports."

Mike Cavanaugh

"I’d put aside the probability that there's anything inorganic that's likely to happen around ESPN in particular," said Cavanagh, who is also leading Comcast unit NBCUniversal.

Still, Comcast officials made it clear that the company is banking on live sports, and looking for opportunities to potentially expand its portfolio, especially as a way to increase subscribers for its streaming service Peacock. NBCUniversal's current sports rights include the NFL's "Sunday Night Football," MLB, Premiere League, the Olympics, PGA and in the fall will broadcast Big Ten football. All and more can be streamed — some exclusively — on Peacock.

Comcast has also been widely rumored to have an interest in the rights for the NBA when they come up for bid in 2025.

Live sports are another major asset in the streaming wars.

"Peacock, one of the great drivers of subscription growth has been sports, it adds to the value of the subscription," Cavanagh said. "If you look at the value of rights in sports on Peacock, it's very substantial and would represent a great value to the consumer when you look at sports alone."