Disney stock surged Tuesday following reports that the National Football League was in talks to buy a stake in ESPN. Elsewhere, Disney announced Disney+ will be available on the Apple Vision Pro. The combined news boosted the stock into a high-alert zone for aggressive investors.
The NFL is in "advanced discussions" with Disney to purchase a stake in its ESPN sports media business, the New York Post reported late Friday. In return for the equity stake, ESPN would assume control of NFL Media, which owns the league's production unit, NFL films — as well as its cable channels, NFL Network and Redzone. The deal would also include NFL.com and the recently-launched streaming service NFL+.
Discussions had advanced far enough that the league informed the Players Association and team owners, the New York Post reported.
Disney CEO Bob Iger previously stated the Dow Jones media giant was open to selling an equity stake in ESPN. IN addition, he said, the company would seek a strategic partner to help with distribution and content as it transitions to streaming.
However, the NFL in 2021 signed an 11-year media deal worth more than $100 billion that includes agreements with NBC, CBS, Amazon, YouTube, Fox and Disney. The NFL has an opt-out clause after seven years following the deal. However, it remains unclear how the acquisition of a stake in ESPN will affect those contracts.
Disney Joins Apple Vision Pro
Elsewhere, Disney announced on Tuesday that its Disney+ streaming platform will be available on the upcoming Apple Vision Pro mixed-reality headset. Disney+ subscribers will be able to stream via the Apple Vision Pro at no additional cost starting Feb. 2, the release date for the headset.
Eligible Disney Bundle subscribers will also be able to access Hulu content in addition to Disney+ shows and movies. Meanwhile, Disney plans to roll out dozens of 3D movies on the headset from popular series including Star Wars, Marvel, Avatar, and original films such as Encanto. Users that previously purchased Disney movies with 3D viewing options from the Apple TV app will also have access to those versions on the Vision Pro at no extra cost.
Disney Stock
Shares of Disney stock jumped about 3% Tuesday following the news, marking its biggest daily gain since November. Disney stock bounced off support at its 200-day moving average, and snapped back above its 50-day line. It also broke a downsloping trendline, putting in an early buy zone for risk-tolerant investors.
MarketSmith chart analysis reads the pattern as a seven-week flat base, with a buy point at 96.51.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
