Former Disney CEO Bob Chapek says ESPN doesn’t need strategic partners | Wilnesh News

Bob Chapek said he sees no reason for Disney-owned ESPN to add minority shareholders in his first public comments since Disney fired him as chief executive in November 2022.

“Strategically, I don’t see the benefit of bringing in another minority partner to ESPN,” Chapek said in “ESPN’s Battle for Dominance,” a CNBC documentary released Thursday that chronicles the network. digital strategy.

disney CEO Bob Iger told CNBC’s David Faber in July that he would consider selling a minority stake in ESPN to bolster the sports network’s content or technology as ESPN plans to launch a new direct-to-consumer service, which he later said would launch in the fall of 2025.

The company has not yet announced a deal to sell its ESPN stake. CNBC reported in August that the network had held talks with major U.S. professional sports leagues, including the National Football League and National Basketball Association, about potential partnerships or investments.

Disney owns 80% of ESPN and Hearst owns the other 20%, a structure that has been in place since 1996.By looking for partners, Disney hopes to Iger said at the Disney press conference that he will strengthen the content, distribution and marketing of direct-to-consumer ESPN, which has not yet been priced. August quarter earnings conference call.

A partnership with one of the professional sports leagues could help secure future live broadcast rights, although it could anger other media companies bidding against Disney for gaming packages. Bringing in a technology or telecommunications company like Verizon or Apple could give ESPN broader distribution options by reaching a larger customer base.

However, it is unclear whether the sale of ESPN equity would be required to reach the arrangement. ESPN President Jimmy Pitaro, who was also interviewed by CNBC in the documentary, downplayed the need for sports networks to sell stakes in their businesses to form partnerships with leagues or other companies.

“This has nothing to do with fairness,” Pitaro said. “This is not about these partners taking ownership of ESPN. As Bob (Iger) said, we are very open to that, but this is about partnerships and accelerating the launch or adoption of ESPN’s flagship product.”

Chapek’s comments were his first public statement since Disney’s board fired him about 16 months ago and reappointed Iger as CEO. He and Iger, who continues to serve as Disney’s executive chairman, have a strained relationship that has gradually soured during Chapek’s nearly three-year tenure as CEO, from 2020 to 2022. As CNBC reported in September. Chapek declined to comment on anything other than ESPN’s future with the CNBC documentary.

While Chapek said he disagreed with the need to bring in a partner for strategic reasons, he did acknowledge that Disney might do so to bring in the cash to pay for Comcast’s one-third stake in Hulu, Disney has committed to acquire the stake. At least $8.6 billion.

“Hearst already has a minority strategic partner. So this will bring in a second minority strategic partner,” Chapek said. “Obviously, the benefit of that is you get some cash. And given that there are some conversations going on between Comcast and Disney about the need to eventually buy a stake in Hulu so that it’s fully owned by The Disney Company, maybe the cash itself That’s what they’re after.”

Chapek also discussed his vision as CEO to transform ESPN into a centralized hub that directs consumers to live games regardless of which company owns the rights to broadcast them — a concept from CNBC First reported in March 2023.