Positive Outlook Ahead of Streaming Service Relaunch
Receives 10% Stake in ESPN as Consideration
The National Football League (NFL), the most popular sport in the United States, is selling most of its media business, including TV channel operations, to Disney.
According to local media outlets such as Bloomberg on August 6, the NFL will receive a 10% stake in ESPN, the sports media company owned by Disney, in exchange for the sale.
The assets Disney will acquire include the subscription-based highlight service "NFL RedZone" and the cable channel "NFL Network." Disney will also be able to broadcast more NFL games.
This deal was reached ahead of the relaunch of the sports streaming service "ESPN" scheduled for later this month. Disney plans to allow subscribers to watch all of ESPN's TV channels for $30 per month. The company is also preparing a bundled plan that includes video streaming services "Hulu" and "Disney+" for $36 per month.
Currently, Disney holds an 80% stake in ESPN, while Hearst owns 20%. After regulatory review is completed in one year and the sale is finalized, Disney will hold 72%, Hearst 18%, and the NFL 10% of ESPN, respectively.
Disney CEO Bob Iger said, "By bringing together the world's leading sports media brand and America's most popular sport, we will deliver an unmissable experience."
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