The National Football League (NFL) has agreed to sell most of its media businesses to Walt Disney Co. (NYSE:DIS), in exchange for a 10% stake in Disney’s ESPN sports network.
Check out how DIS stock is trading here.
What Happened: According to The Wall Street Journal report, as part of the deal, ESPN will gain control of key media assets, including the NFL Network. Analysts have estimated the value of ESPN to be between $25 billion and $30 billion, placing the NFL’s share in the range of $2.5 billion to $3 billion.
The deal is subject to regulatory approval and is expected to face scrutiny from lawmakers due to the influence of both the NFL and ESPN.
Disney’s ESPN is a major player in the sports media industry, and this deal is expected to further solidify its position. The NFL, on the other hand, is the most popular sports league in the U.S., and its partnership with ESPN is likely to have a significant impact on the media landscape.
CNBC sports business reporter Alex Sherman also commented on the deal via X (formerly Twitter), highlighting its potential to reshape the sports media landscape.
Why It Matters: This deal comes at a crucial time for Disney. The company has been working on a turnaround, with a focus on its streaming services and sports content.
The acquisition of a stake in ESPN by the NFL could potentially strengthen Disney’s position in the sports media market, which is a key part of its overall strategy.
This development will be of particular interest to investors as they await Disney’s third-quarter financial results, which are expected to shed light on the impact of consumer spending on the company’s various offerings, including streaming and sports content.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
