Report: Disney Decides To Keep ESPN In Portfolio

Disney has decided against spinning off ESPN and will keep the sports media powerhouse as a core part of the company, according to sources cited by Business Insider.

The decision comes as Josh D’Amaro prepares to take over as Disney’s new CEO from longtime leader Bob Iger. 

Sources say retaining ESPN will strengthen Disney’s ongoing shift toward streaming, allowing the network to be distributed across both traditional cable and streaming platforms, including bundles with Hulu+ and Disney+.

Strategic Shift Under New Leadership

Once a major profit engine for Disney, ESPN has faced significant challenges in recent years as cord-cutting accelerated and linear television subscriptions declined. While Bob Iger had long viewed ESPN as a foundational asset, internal discussions had explored the possibility of spinning it off into a standalone company to unlock value and focus resources elsewhere.

By keeping ESPN in-house, Disney aims to leverage its valuable sports rights and content to bolster its direct-to-consumer streaming strategy and maintain a multiplatform presence.

FCC Scrutiny Adds Pressure

The announcement arrives amid heightened regulatory pressure on Disney. Federal regulators, led by FCC Chairman Brendan Carr, are investigating the company’s diversity, equity, and inclusion programs and hiring practices at ABC stations. The probe examines whether Disney has engaged in race- and gender-based discrimination in its employment decisions.

Disney is currently facing a sweeping FCC review of its eight local ABC broadcast station licenses, ordered earlier this week.

Disney shares closed lower for the fourth consecutive day on Tuesday and were fractionally down in after-hours trading.

The decision to retain ESPN provides clarity for investors and employees as the company enters a new leadership era under D’Amaro, who will need to navigate both the competitive streaming landscape and ongoing regulatory and political challenges in Washington.