Comcast Shoots Down the Possibility of Partnering With Disney on ESPN

While ESPN chairman Jimmy Pitaro refused to divulge possible strategic partners for ESPN, we can now scratch one name off the list- Comcast.

Following Bob Iger’s July 13th interview with CNBC, where the Disney CEO revealed that his company would consider bringing in partners to help transition ESPN to a digital first entity, rumors began that Comcast could be potential partner.

Photo: Disney

Comcast Executive Shoots Down Rumors

During Comcast’s Q2 earnings call today, however, Comcast president Mike Cavanagh squashed those rumors.

“I’ve been asked about and read some speculation that in some way we might be interested in swapping businesses [with Disney]… in the sports space. And I would just say that that’s very improbable,” given “tremendous issues” around taxes and minority shareholder deal structures. “So I would put aside the idea that there’s… anything inorganic, you know, that is likely to happen around ESPN in particular, which is what we’ve been asked about,” Cavanagh said.

Photo: Deadline. Comcast executive Mike Cavanagh.

While CNBC has reported that Disney was talking to the NFL, NBA, and MLB about becoming minority investors in ESPN, Bank of America Securities analyst Jessica Reif Ehrlich had suggested that Comcast would be a likely partner for ESPN.

The veteran analyst noted that Iger’s comments about ESPN “just screams one company — and that company is Comcast.”

Comcast

NBCUniversal Has Its Own Sports Empire

On the earnings call however, Cavanagh instead highlight NBCUniversal’s own sports business and Peacock’s live sports lineup.

Photo: Peacock

I think we’ve got one of the best portfolios in sports,” he said. Cavanagh then cited NFL Sunday Night Football, Big 10 football, NASCAR, WWE, Olympics and PGA rights. “So obviously, it makes us a really strong partner to leagues and around the world. We’re known for that.”

Comcast and Disney Have Partnered Before

While a partnership with Disney may have struck some as an odd idea, it was perhaps not as unlikely as it seemed. Previously, Disney and Comcast had agreed to partner in the ownership of Hulu.

Comcast currently owns 33% of the streaming service, while Disney owns the remainder. Beginning next year, Disney can require Comcast to sell it stake in Hulu, a move that Iger had stated he will make.

Photo: THIERRY CHESNOT/GETTY IMAGES

As always, be sure to check back in with MickeyBlog. We will continue to update you on all the news surrounding ESPN.

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