The Walt Disney Company has reportedly abandoned plans to spin off ESPN, shelving years of speculation that a standalone sports network could help offset the company’s declining cable business.
The move marks one of the first major calls under CEO Josh D’Amaro, who took office in March.
“Instead, the sports network will remain within the media giant, which believes its presence will help it pivot into streaming,” sources said, according to Business Insider.
However, the decision is not permanent, the outlet noted. Although Josh D’Amaro has reportedly indicated that he doesn’t see a near-term path to a spinoff, he may revisit that option as conditions evolve, according to Business Insider.
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A 3D printed Disney logo in front of the ESPN+ logo on July 13, 2021. (Reuters/Dado Ruvic/Illustration/File photo / Reuters)
Furthermore, Disney could still consider bringing in strategic partners to take minority stakes, similar to the sale of a 10% stake in ESPN to the NFL last year.
The decision effectively cooled long-running rumors about a possible split from ESPN, which first gained traction after the former CEO. Bob Iger stunned the media industry in 2015 by revealing that the once-profit-making colossus was losing subscribers.
Teleprinter Security Last Change Change % SAY THE WALT DISNEY Company. 101.47 -0.88 -0.86% As viewers have become more selective in their spending in recent years, the cord-cutting wave has accelerated across the cable industry, raising concerns that the decline in business could weigh on Disney’s overall valuation.
By remaining under Disney, sources say the current structure could better position ESPN to accelerate its pivot to streaming, Business Insider reported.
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Josh D’Amaro, Chairman of Walt Disney Parks and Resorts, speaks during an event on November 9, 2024 in São Paulo, Brazil. (Ricardo Moreira/Getty Images for Disney/Getty Images)
Around August 2025, ESPN became available outside of the traditional cable bundle for the first time, marking a major shift for sports fans who previously had to pay for expensive packages that included channels they didn’t want.
Based on the new decision, Disney will continue to distribute ESPN across multiple platforms, including its traditional cable package starting at around $75 per month, a streaming package alongside Hulu and Disney+ starting at $35.99 per month, and a standalone direct-to-consumer service offering $299.99 per year.
Fans cheer during an ESPN broadcast before the Super Bowl, Feb. 7, 2025, in New Orleans. (David Buono/Icon Sportswire via Getty Images / Getty Images)
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Disney’s sports segment, anchored by ESPN, generated about $17.7 billion in revenue last year, or about 19% of Disney’s total revenue of $94.4 billion.
FOX Business has reached out to Disney for more information.
