Disney is abandoning plans to spin off ESPN, ending years of speculation that the sports network could operate independently to offset the company’s declining cable business.
The decision marks one of the first major strategic calls under CEO Josh D’Amaro, who took the helm in March. Instead of spinning off the network, Disney will keep ESPN within the media conglomerate, believing its presence will support the company’s transition to streaming.
The move does not represent a permanent commitment. While D’Amaro has indicated he sees no near-term path to a spinoff, the option could be revisited as conditions change, sources told Business Insider.
Disney may still pursue strategic partnerships, including selling minority stakes. Last year, the company sold a 10% stake in ESPN to the NFL, a deal that gave ESPN access to the league’s media assets including NFL Network. The NFL retained a 10% ownership share of the network.
The decision puts to rest rumors that first surfaced in 2015, when then-CEO Bob Iger revealed that ESPN—once a profit engine—was losing subscribers as viewers abandoned traditional cable packages.
Cord-cutting has accelerated across the cable industry, raising concerns that ESPN’s declining subscriber base was weighing on Disney’s overall valuation. By keeping the network inside Disney, analysts suggest ESPN may be better positioned to accelerate its shift toward streaming.
ESPN became available outside traditional cable bundles for the first time in August 2025, a significant shift for sports fans who previously needed costly channel packages. Disney now distributes ESPN across multiple platforms: a traditional cable bundle at roughly $75 per month, a streaming package with Hulu and Disney+ at $35.99 per month, and a standalone direct-to-consumer option at $299.99 per year.
Disney’s sports division, anchored by ESPN, generated approximately $17.7 billion in revenue last year—about 19% of the company’s total revenue of $94.4 billion.