ESPN Used to Be Disney’s Cash Cow. Now, Its Revenue Is Declining, and Bob Iger Is Looking to Sell a Stake
The Mouse House isn’t sure what to do with its languishing cash cow, ESPN.The sports network, once a financial engine for Disney, is suffering a decline in revenue owing to the slow death of traditional cable TV. Though ESPN is still profitable, Disney is looking to sell off a stake and transform the business into a digital streaming company, though near-term plans for that are unclear.ESPN has long been the reliable moneymaker of the media and entertainment giant. In the first half of 2023, Disney’s cable networks division, led by ESPN and its sister channels, generated $14 billion in revenue and $3 billion in profit. But revenue for those six months is down 6% from what it was a year earlier, and profit dropped 29%, according to the New York Times. Disney does not break out ESPN’s finances separately.In terms of advertising, ESPN has earned over $2 bi