Disney rejects sale or spinoff of linear television networks
Updated
Updated · The Wall Street Journal · May 6
Disney rejects sale or spinoff of linear television networks
7 articles · Updated · The Wall Street Journal · May 6
CFO Hugh Johnston told analysts on Wednesday such a move would be highly complex and unlikely to create shareholder value at current market valuations.
He said the networks help supply shows including High Potential and Shogun to Disney+ and Hulu, while ESPN sports programming helps reduce streaming subscriber churn.
The comments came in a revamped earnings presentation featuring pre-screened questions and a 3,000-word shareholder letter, as rivals have pursued or considered similar linear TV separations.
Will ESPN Unlimited and Disney’s new bundling strategies redefine the sports streaming landscape—or risk cannibalizing their own traditional platforms?
With streaming revenue now double linear, how long can Disney’s hybrid model continue to deliver growth without major structural change?