Disney keeps ESPN close as streaming takes center stage

The new leader at Disney has decided to hold onto ESPN instead of spinning it off. Their reasoning? Keeping the sports giant inside the company will help push forward Disney's streaming plans. This marks one of the first big moves under the current CEO, who took charge earlier this year. While ESPN could still be split off later, for now Disney sees more value in keeping it under the same roof. For a long time, people thought selling ESPN might solve Disney's cable TV troubles. Back in 2015, talk about ESPN losing viewers grew louder as more people dropped traditional TV for streaming. Cutting the cord became a trend, and ESPN’s future looked shaky. Some believed separating ESPN could protect Disney’s stock price and profits.Despite those worries, Disney’s latest financial reports show ESPN is still pulling in huge money. Last year alone, the network made nearly $18 billion, which is a big chunk of the company’s total earnings. Instead of selling it, Disney is betting on ESPN to help fund its streaming push. ESPN isn’t just relying on old-school cable anymore. It’s now available in different ways—part of a cable bundle, inside a Disney+ or Hulu package, or even as a standalone option for die-hard sports fans. Disney is also testing the waters with investments, like selling a 10% share to the NFL last year. The big question is whether ESPN’s traditional TV business will keep shrinking while streaming grows. Disney isn’t giving up on ESPN, but it’s trying to figure out how to balance old habits with new tech.