Disney CEO Bob Chapek speaks at the 2022 Disney Legends Awards during Disney’s D23 Expo on September 9, 2022 in Anaheim, California.
Mario Anzuoni | Reuters
In his first public comments since Disney fired him as CEO in November 2022, Bob Chapek told CNBC he sees no reason for Disney-owned ESPN to add a minority partner. .
“Strategically, I don’t see much benefit in bringing on yet another minority partner at ESPN,” Chapek said as part of “ESPN’s Fight for Dominance,” a documentary chronicling CNBC’s digital strategy released Thursday. Ta.
disney CEO Bob Iger told CNBC’s David Faber in July that he plans to acquire a minority stake in ESPN to strengthen the sports network’s content and technology as the company plans new direct-to-consumer services. (later said it would begin by the fall of 2025).
The company has not yet announced a deal to sell its stake in ESPN. CNBC reported in August that the network was in talks with major U.S. professional sports leagues, including the National Football League and the National Basketball Association, about potential partnerships and investments.
Disney owns 80% of ESPN and Hearst owns the remaining 20%, a structure that has been in place since 1996. By looking for a partner, Disney Iger said during Disney’s August quarterly earnings call that the company will ramp up content, distribution and marketing for direct-to-consumer ESPN, whose price has not yet been determined.
Partnering with one of the professional sports leagues could help secure future live rights, but could frustrate other media companies competing with Disney with game packages. Attracting technology and telecommunications companies like Verizon and Apple could give ESPN a broader range of distribution options by reaching a larger customer base.
Still, it’s unclear whether a deal would require selling any ESPN stock. ESPN President Jimmy Pitaro also spoke with CNBC as part of the documentary and downplayed the need for sports networks to sell stakes in their businesses to forge partnerships with leagues and other companies.
“It’s not a question of fairness,” Pitaro said. “This doesn’t mean these partners are going to take ownership of ESPN. As Bob, that’s a problem.” [Iger] said we are very welcome, but this is about the partnership and the acceleration of ESPN’s flagship launch and adoption. ”
Chapek’s first interview since his dismissal in 2022
Chapek’s comments are his first public remarks since Disney’s board fired him and reinstated Iger as CEO about 16 months ago. As CNBC documented in September, his relationship with Iger, who remained Disney’s executive chairman, was strained and gradually deteriorated throughout Chapek’s nearly three-year tenure as CEO from 2020 to 2022. It got worse. Chapek declined to comment other than regarding the future of ESPN’s CNBC documentary.
Chapek said he doesn’t agree with the need to bring on a partner for strategic reasons, but he did raise cash for Comcast’s one-third stake in Hulu, which Disney committed to acquiring in March 2020. He acknowledged that Disney may do so in order to do so. At least $8.6 billion.
“Hearst already has one minority strategic partner, so this adds a second minority strategic partner,” Chapek said. “Obviously, the benefit of doing that is that you have some cash available, and there is a conflict between Comcast and Disney in terms of having to buy the last stake in Hulu for the Disney company to fully own it.” Given some of the conversations that are happening, perhaps that cash itself could be what they are after.”
ESPN Chairman James Pitaro attends a New York Yankees baseball game at Yankee Stadium on June 19, 2019 in New York City.
Washington Post | Washington Post | Getty Images
hub for all sports
Chapek also talked about his vision as CEO to make ESPN a central hub that directs consumers to wherever they’re streaming games, regardless of which company owns the rights to broadcast the games. also spoke. The concept was first reported by CNBC in March 2023.
“If you have an Apple TV and you want to watch a movie, you have no idea where it’s on, whether it’s Prime, Netflix, Disney+, Hulu,” Chapek said. “How do you find it? You go to Apple TV, connect it to the movie you want to watch, and it directs you to exactly where it is, and it seamlessly connects you without leaving you. Go to the app and find the show in that app. I think ESPN should be the central clearinghouse source.”
Chapek said adding one-stop navigation could make ESPN the first place sports fans go when they want to watch a game, even if Disney doesn’t own the rights to a particular sport. said.
“How can we make ourselves indispensable to sports viewers so that they don’t leave us as we move to a streaming world? Solving that problem is a big one.” I think that’s one way to do it,” Chapek said.
Video: Bob Chapek talks about the future of ESPN
