DIS Shareholders and Stock Info ONLY

[RivShore]

https://www.cnbc.com/2023/03/02/espn-live-sports-streaming-hub.html

ESPN wants to be the hub of all live sports streaming — even if it helps its competition​

Published Thu, Mar 2 20232:04 PM EST
Alex Sherman@sherman4949

Key Points

• ESPN has talked with major sports leagues and media partners about launching a feature that would link users directly to where a live sporting event is streaming, sources said.
• The actual media partners haven’t yet been determined, and there’s no timeline on when a feature would launch.
• It could involve global streaming services and direct-to-consumer regional sports network products, and would aim to make ESPN the TV guide of live sports.

Disney’s ESPN wants to be the hub for all live sports streaming — even for its competition.

The sports network has held conversations with major sports leagues and media partners about launching a feature on ESPN.com and its free ESPN app that will link users directly to where a live sporting event is streaming, according to people familiar with the matter.

That could include national or global streaming services, such as Apple

TV+ and Amazon Prime Video, or a regional sports service such as Sinclair’s Bally Sports+ or Madison Square Garden Entertainment’s MSG+.

The actual media partners haven’t yet been determined, and there’s no timeline on when such a feature would launch, said the people, who asked not to be named because the discussions are private. Still, ESPN has broached the idea to the major sports leagues and media companies to gauge their enthusiasm, the people said.

While the business terms of the concept could still change, ESPN has considered a model in which it would take a cut of subscription revenue from a user who signed up for a streaming service through the ESPN app or website, two of the people said. If a customer already subscribes to a given service, ESPN would collect no money and just provide the link as a courtesy, people familiar with the matter said.

ESPN may also alert users to games that air on linear TV, cementing its new role as the TV guide of live sports, the people said.

An ESPN spokesman declined to comment.

Several owners of regional sports networks have expressed particular optimism about the idea as they try to boost subscription revenue while leagues question the larger industry’s business prospects in a streaming-dominated ecosystem, two of the people said. CNBC previously reported that Sinclair’s Diamond Sports Group is contemplating bankruptcy restructuring after missing a $140 million debt repayment. Warner Bros. Discovery has alerted leagues it plans to exit the RSN business altogether, according to The Wall Street Journal.

De-cluttering sports​

It’s become increasingly difficult for consumers to sort out how to find a given game as rights packages have been carved up by sports leagues looking to maximize carriage fees among streaming partners. A New York Yankees game for a New York-area fan could air on linear TV on the YES Network, ESPN or Warner Bros. Discovery
’s TBS, or it could stream on Amazon Prime Video, Apple TV+ or NBCUniversal’s Peacock.

ESPN wants to use its self-proclaimed status as “the worldwide leader in sports” to become the de facto first stop for all consumers looking where to watch live sports, the people said. Currently, ESPN only links users to ESPN-licensed content. That amounts to almost 30% of all televised or streamed U.S. sports, according to people familiar with the matter.

ESPN’s willingness to promote other streaming services suggests a strategic shift in the streaming wars. Disney is less focused on gaining streaming subscribers — and eyeballs — at all costs. Company executives have emphasized they want investors to prioritize revenue and profit rather than subscriber growth, a trend started by other media companies, including Netflix and Warner Bros. Discovery.

Media companies have also begun trading in lockstep as streaming growth has slowed. That’s limited competitive pressures and promoted working together. Disney and Warner Bros. Discovery are also emphasizing licensing content to rival streaming services to increase revenue rather than keep the content exclusive.

Disney CEO Bob Iger announced a company-wide reorganization last month that made ESPN a standalone division, run by ESPN Chairman Jimmy Pitaro. The move may bring ESPN’s finances under closer scrutiny during earnings calls. Pitaro announced Wednesday he’s streamlining management underneath him to reduce his number of direct reports.
While activist investor Dan Loeb last year pushed for Disney to spin out or sell ESPN, Iger said there are no plans for that.

That would feed into what I just read yesterday about MSG Network. I like the idea of ESPN getting a cut of each game buy, like Apple takes a cut of all iPhone subscription costs.

https://nypost.com/2023/03/01/msg-to-roll-out-streaming-service-for-knicks-rangers-games/

MSG to roll out streaming service for Knicks, Rangers at $10 per game, $30 a month​

Cord-cutting fans of the Knicks and Rangers will now be able to stream their favorite teams — at $10 per game.


Madison Square Garden Entertainment announced on Wednesday that it will offer streaming viewers a standalone platform that includes access to Knicks, Rangers, Islanders, Devils, and Buffalo Sabres games.


The new service, MSG+, will bundle all of the live sports action across MSG Networks platforms.


The service, which is limited to regions whose cable operators carry the Madison Square Garden Network, will be available on a direct-to-consumer basis for a monthly cost of $29.99 — or an annual rate of $309.99.


Fans who prefer to pay for individual games will be charged $9.99 per contest.


“MSG Networks is delighted to be able to offer fans more ways to watch our compelling and award-winning content,” MSG Network President and CEO Andrea Greenberg said in a statement.


“The introduction of MSG+ this summer will be a significant milestone for our company and will offer a mix of subscription options for fans who do not subscribe to a traditional, bundled pay television subscription,” Greenberg said.


The company also announced it had unveiled MSG SportsZone, a free, ad-supported streaming offering whose content is primarily focused around sports betting and classic games. There is no live programming of sports games on MSG SportsZone.


Greenberg told analysts last year that MSG Networks was planning to launch its own app for cord-cutters.


Before Wednesday’s announcement, MSG Networks was only available through the FuboTV and the DIRECTV Stream platforms.

MSG Networks airs most New York Rangers home and away games.NurPhoto via Getty Images Madison Square Garden and its tenants — the Knicks and Rangers — are some of the most valuable properties in North American professional sports.Getty Images
Linear cable has seen a steady decline of viewers in recent years as subscribers have cut the cord and migrated to direct-to-consumer streaming offerings such as Netflix, Hulu, Disney+, YouTube TV, DIRECTV Stream, FuboTV, AppleTV, Amazon Prime, and others.


The proliferation of streaming services has dried up the customer base for cable companies — with devastating consequences for regional sports networks.


As exclusively reported by The Post, Diamond Sports Group — which operates 21 Bally Sports-branded regional sports networks, or RSNs, that account for more than half the local broadcast markets around the country — has been in talks this fall to sell itself to the sports leagues for as much as $3 billion including debt.

 

[wabbott]

Just to confirm @wabbott , I did not write this but I may have a plagiarism claim against Puck. LOL

I'm glad some are coming around to the contrarian opinion and I still think they are not giving enough credit to the value of keeping the Disney related properties out of a competitor's hands. What a mess it would have been having Avatar and some Marvel fully in Comcast's control.

A few articles now have said something like this:

Has anyone seen where that number is published? I took a quick look at the annual report and did not see it. I still think its closer to the low $50's when all the smaller divestitures are taken into account.

I'll do some digging tomorrow and see what price was actually paid.

Quality "content", or IP, or whatever term you choose, is worth buying if that's the business you're in. And we (DIS stockholders) are in that biz. The Simpsons is wildly popular on Disney +. The Avatar movies will make a lot of money, as long as James Cameron stays healthy. There's no telling how many folks have visited DLR and WDW just to do the RoR attraction.

 

[RivShore]

Here's some info on that Citi note:

https://seekingalpha.com/news/3943340-disney-may-now-be-motivated-to-sell-out-of-hulu-citi-says

Disney may now be motivated to sell out of Hulu, Citi says​

Mar. 02, 2023 11:29 AM ETThe Walt Disney Company (DIS), CMCSABy: Jason Aycock, SA News Editor28 Comments


Citi now believes that Walt Disney (NYSE:DIS) might sell out of its majority stake in Hulu, transferring it to minority partner Comcast (NASDAQ:CMCSA) - running against some conventional wisdom suggesting a planned Hulu/Disney+ combination.


Disney holds a 67% stake in Hulu after the buyouts of previous partners Fox and Time Warner, while Comcast holds the other third - and a deal between the two sets up a potential buyout by spring 2024.


Before earnings season, Citi believed there were two paths for Disney's direct-to-consumer business: Either "raise prices to narrow the [earnings before interest/taxes] gap (potentially relegating its service to niche status)," or merge Disney+ and Hulu into a single app, boosting the content schedule and leaving price increases to the future.


Now, analyst Jason Bazinet says, "we believe the company is less interested in a mass market DTC offering." In commentary after fiscal Q1 earnings, Disney CEO Bob Iger noted that in chasing both profitability and growth for the streaming business, "we will focus even more on our core brands and franchises, which have consistently delivered high returns."


What's more, Disney might trade its "Hulu" for a "Hulk" instead, Bazinet suggested. While Disney owns all of Marvel's intellectual property, Universal (CMCSA) has distribution rights for a pair of the comic name's characters: The Incredible Hulk and Namor - and so if Disney makes a film based on those characters, Comcast can distribute that film on Peacock.


In a sale out of its Hulu stake, Disney might take the opportunity to secure those distribution rights, Bazinet said.


From here, though, there are a wide variety of outcomes amid some jockeying for position between Disney and Comcast about what Hulu is worth.


Disney doesn't report Hulu's financials on a stand-alone basis, and that leads analysts to estimate their own value. Bazinet and Citi figure Hulu will generate 2024 EBIT between -$0.5B and $1.25B, leading to a valuation between $19.8B and $27.5B.


For Comcast (CMCSA), acquiring Hulu would be a net positive if it pays below $27.5B, as a way to "accelerate DTC scale with potential financial synergies, accelerate its push into live streaming aggregation, & improve its strategic positioning within the media category," Bazinet said.


If Disney sells, there are two potential uses of proceeds, he said: Disney pays down debt, which translates to -$0.18 to $0.37 in incremental earnings per share (a range of $3/share downside to $7/share upside); or Disney retires shares (an incremental EPS of $0.04 to $0.74, or $1/share to $13/share upside).


In December, NBCUniversal chief Jeff Shell said he saw "no indications that anything else is going to happen than Disney writing us a big check" for Hulu in 2024.

 

[wabbott]

Just to confirm @wabbott , I did not write this but I may have a plagiarism claim against Puck. LOL

I'm glad some are coming around to the contrarian opinion and I still think they are not giving enough credit to the value of keeping the Disney related properties out of a competitor's hands. What a mess it would have been having Avatar and some Marvel fully in Comcast's control.

A few articles now have said something like this:

Has anyone seen where that number is published? I took a quick look at the annual report and did not see it. I still think its closer to the low $50's when all the smaller divestitures are taken into account.

https://thewaltdisneycompany.com/th...y-fox-inc-for-71-3-billion-in-cash-and-stock/

June 20, 2018

The Walt Disney Company Signs Amended Acquisition Agreement To Acquire Twenty-First Century Fox, Inc., For $71.3 Billion In Cash And Stock​

New $38-per-share acquisition gives 21st Century Fox shareholders option to elect cash or stock in the combined entity

BURBANK, Calif., June 20, 2018—The Walt Disney Company (NYSE: DIS) today announced that it has signed an amended acquisition agreement with Twenty-First Century Fox, Inc. (“21st Century Fox” —NASDAQ: FOXA, FOX), for $38 per share in cash and stock. Disney will acquire 21st Century Fox immediately following the spin-off of the businesses comprising “New Fox” as previously announced.

Under the amended agreement, 21st Century Fox shareholders may elect to receive, for each share of 21st Century Fox common stock, $38 in either cash or shares of Disney common stock (subject to adjustment for certain tax liabilities as described in the original acquisition announcement). The overall mix of consideration paid to 21st Century Fox shareholders will be approximately 50% cash and 50% stock. The stock consideration is subject to a collar (described below under ‘Transaction Details’) and is expected to be tax-free to 21st Century Fox shareholders.

Transaction Details

Disney is expected to pay a total of approximately $35.7 billion in cash and issue approximately 343 million new shares to 21st Century Fox shareholders, representing about a 19% stake in Disney on a pro forma basis.

The collar on the stock consideration will ensure that 21st Century Fox shareholders will receive a number of Disney shares equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32. 21st Century Fox shareholders will receive an exchange ratio of 0.3324 shares of Disney common stock if the average Disney stock price at closing is above $114.32 and 0.4063 shares of Disney common stock if the average Disney stock price at closing is below $93.53. Elections of cash and stock will be subject to proration to the extent cash or stock is oversubscribed.

Disney will also assume about $13.8 billion of net debt of 21st Century Fox. The acquisition price implies a total equity value of approximately $71.3 billion and a total transaction value of approximately $85.1 billion (assuming no tax adjustment). Disney has secured financing commitments for the cash portion of the acquisition.

 

[RivShore]

https://thewaltdisneycompany.com/th...y-fox-inc-for-71-3-billion-in-cash-and-stock/

June 20, 2018

The Walt Disney Company Signs Amended Acquisition Agreement To Acquire Twenty-First Century Fox, Inc., For $71.3 Billion In Cash And Stock​

New $38-per-share acquisition gives 21st Century Fox shareholders option to elect cash or stock in the combined entity

BURBANK, Calif., June 20, 2018—The Walt Disney Company (NYSE: DIS) today announced that it has signed an amended acquisition agreement with Twenty-First Century Fox, Inc. (“21st Century Fox” —NASDAQ: FOXA, FOX), for $38 per share in cash and stock. Disney will acquire 21st Century Fox immediately following the spin-off of the businesses comprising “New Fox” as previously announced.

Under the amended agreement, 21st Century Fox shareholders may elect to receive, for each share of 21st Century Fox common stock, $38 in either cash or shares of Disney common stock (subject to adjustment for certain tax liabilities as described in the original acquisition announcement). The overall mix of consideration paid to 21st Century Fox shareholders will be approximately 50% cash and 50% stock. The stock consideration is subject to a collar (described below under ‘Transaction Details’) and is expected to be tax-free to 21st Century Fox shareholders.

Transaction Details

Disney is expected to pay a total of approximately $35.7 billion in cash and issue approximately 343 million new shares to 21st Century Fox shareholders, representing about a 19% stake in Disney on a pro forma basis.

The collar on the stock consideration will ensure that 21st Century Fox shareholders will receive a number of Disney shares equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32. 21st Century Fox shareholders will receive an exchange ratio of 0.3324 shares of Disney common stock if the average Disney stock price at closing is above $114.32 and 0.4063 shares of Disney common stock if the average Disney stock price at closing is below $93.53. Elections of cash and stock will be subject to proration to the extent cash or stock is oversubscribed.

Disney will also assume about $13.8 billion of net debt of 21st Century Fox. The acquisition price implies a total equity value of approximately $71.3 billion and a total transaction value of approximately $85.1 billion (assuming no tax adjustment). Disney has secured financing commitments for the cash portion of the acquisition.

Thanks.
Now we need the next step that includes the asset sales, walking down, from the total value, to the net cost.

 

[wabbott]

Thanks.
Now we need the next step that includes the asset sales, walking down, from the total value, to the net cost.

Do you recall what assets were sold off?

 

[wabbott]

Do you recall what assets were sold off?

Here's an article.

https://www.latimes.com/entertainme...-18/disney-fox-purchase-iger-murdoch-analysis

Comcast eventually wrangled one of Murdoch’s assets, the European satellite TV service Sky. Comcast then paid Disney $15 billion for Fox’s ownership stake in Sky.

Antitrust regulators also forced Disney to sell another asset — Fox’s regional sports networks that carry local games of professional hockey, basketball and baseball teams. The government refused to allow Disney to own both ESPN and more than 20 regional sports channels, so Disney auctioned off the channels, including the YES Network that carries the New York Yankees, for more than $10 billion.

Subtracting proceeds from those asset sales, Disney places the Fox deal at $57 billion.

 

[RivShore]

Here's an article.

https://www.latimes.com/entertainme...-18/disney-fox-purchase-iger-murdoch-analysis

Comcast eventually wrangled one of Murdoch’s assets, the European satellite TV service Sky. Comcast then paid Disney $15 billion for Fox’s ownership stake in Sky.

Antitrust regulators also forced Disney to sell another asset — Fox’s regional sports networks that carry local games of professional hockey, basketball and baseball teams. The government refused to allow Disney to own both ESPN and more than 20 regional sports channels, so Disney auctioned off the channels, including the YES Network that carries the New York Yankees, for more than $10 billion.

Subtracting proceeds from those asset sales, Disney places the Fox deal at $57 billion.

Good stuff, thanks!

In my digging, I found a great wiki page on the acquisition. Unfortunately other than the big ones, most don't have dollars noted:

https://en.wikipedia.org/wiki/Acquisition_of_21st_Century_Fox_by_Disney#Divested_assets

Divested assets​

Assets that were initially included in the acquisition, but have since been sold off to third parties.

• Sky plc (39.14%) – On September 26, 2018, Fox sold their 39% stake in Sky to Comcast at £17.28-per-share, valuing Fox's stake at £11.6 billion ($15 billion) after Comcast's winning bid for Sky.[207][208]
• A&E Networks Europe (50%) – On November 6, 2018, the European Commission ruled that Disney must sell the European factual channels of A&E, including History, H2, Crime & Investigation, Blaze and Lifetime.[56] Hearst Communications, which owns the second half of A&E, has entered talks to acquire Disney's share in these networks.[209] On January 28, 2019, Hearst assumed full ownership of A&E Networks Europe.[210]
• Walt Disney Studios Sony Pictures Releasing de México – On January 31, 2019, Disney agreed to sell its stake in the Mexican film distribution joint venture to Sony Pictures Entertainment Motion Picture Group.[62]
• Fox Sports Networks – Regional sports networks that would be acquired by Disney, but under the agreement with the Department of Justice must be sold to third parties within 90 days after the completion and formal closing of the main deal.[38] On April 26, 2019, the Sinclair Broadcast Group agreed to acquire Fox Sports Networks (excluding the YES Network) from Disney for $10 billion.[96] Fox Sports Networks was later rebranded as Bally Sports on March 31, 2021.[132][133]
  • Fox College Sports – On March 31, 2021 became Stadium College Sports[211][134]
  • Fox Sports Go[212][213] – On April 26, 2021 became the Bally Sports app[136]
  • YES Network (80%) – Yankee Global Enterprises invoked a clause to give it the right of first refusal to buy their stake back following the acquisition of Fox Sports from Disney.[214] On March 8, 2019, the YES Network was sold to a consortium including Yankee Global Enterprises, Amazon, and Sinclair Broadcast Group for $3.5 billion.[215]
• Fox Sports Latin America (Argentine and Mexican version) – On February 21, 2019, Bloomberg reported that Disney has agreed to divest the Mexican and Brazilian Fox Sports channels.[216] The Federal Telecommunications Institute has set the deadline for the Mexican channel on May 1, 2020.[217] On November 13, 2019, Brazil's antitrust regulator CADE said that it would reassess Disney's purchase of Fox because the company did not divest Fox Sports.[218] In December 2019, Mexican broadcaster Televisa won an injunction against Disney and Fox Sports.[219] On May 6, 2020, CADE announced that Fox Sports Brazil and ESPN Brasil would merge on January 1, 2022 due to Fox Sports' structure and broadcasting rights with channel being kept on air for one year.[220] On May 22, 2021, Grupo Multimedia Lauman announced it agreed to acquire Fox Sports Mexico from Disney while Disney announced that remaining feeds in Latin America of the Fox Sports channel were going to be renamed to ESPN 4 on December 1, 2021.[139][143] On February 9, 2022, Disney announced that it would sell Fox Sports Argentina to Mediapro with the deal being expected to close in 2022, pending regulatory approval.[221] The sale was approved by the CNDC on April 27, 2022.[147]
• Debmar-Mercury (advertising sales only) – On April 3, 2019, Lionsgate announced it had transferred its national ad sales from the original incarnation of 20th Television to CBS Television Distribution for its syndicated shows.[87]
• FoxNext's gaming assets – On September 10, 2019, Disney announced plans to sell off FoxNext's gaming assets.[107] In January 2020, Disney sold off a majority of FoxNext's assets (including FoxNext Games Los Angeles, Cold Iron Studios, Aftershock, and their original IPs) to Scopely.[115] Disney later closed down the Fogbank Entertainment development studio.[116]
• Endemol Shine Group (50%) – On October 22, 2019, Banijay announced its intent to acquire Endemol Shine from Disney and Apollo for $2.2 billion.[108] Disney and Apollo agreed to sell Endemol to Banijay on October 26, 2019, pending antitrust approval.[109][110] On July 1, 2020, the European Commission approved of Banijay's purchase. The sale was completed on July 3, 2020.[111]
• TrueX – On March 17, 2020 it was reported by The Wall Street Journal that Disney was looking to sell TrueX due to lack of investment after being labeled a non-core asset.[118] On September 28, 2020, TrueX was sold to Gimbal, Inc.[122]
• TeleColombia (formerly Fox TeleColombia) – On October 28, 2021, ViacomCBS (now Paramount Global) announced it was acquiring a majority stake in TeleColombia (& its division Estudios TeleMéxico) from Disney. The acquisition closed on November 23 of that year.[142][222]

 

[wabbott]

That the purchase keeps this piece of IP from competitors (as you have noted) is a value that is hard to put into numbers. Universal Orlando is busy as can be competing with WDW, and this is a long-term worry. They're hiring at the same time DIS is firing.

One thing WDW has that UO doesn't have is room. UO can't expand without paying huge prices for more land.

 

[wabbott]

And while I'm on the soapbox, DIS better be figuring out a way to expand DLR/DCA. The City of Anaheim would sell their convention center. It's just a matter of agreeing on a price.

 

[Jrb1979]

That the purchase keeps this piece of IP from competitors (as you have noted) is a value that is hard to put into numbers. Universal Orlando is busy as can be competing with WDW, and this is a long-term worry. They're hiring at the same time DIS is firing.

One thing WDW has that UO doesn't have is room. UO can't expand without paying huge prices for more land.

They don't need to add more room. A new park is on the way that has lots of room to expand. With 3 theme parks and a water park Universal will become a 3-4 day visit. It will take away from Disney.

 

[wabbott]

https://variety.com/2023/biz/global/disney-uk-losses-300-million-gross-revenue-up-1235542179/

Mar 3, 2023 9:52am PST

Disney U.K. Posts Losses of Almost $300 Million But Gross Revenue Is Up
By K. J. Yossman

Disney’s U.K. subsidiary is in need of a little fairy dust. The London-based outpost for the House of Mouse – The Walt Disney Company Limited – has posted a loss of almost $300 million for the financial year ending Oct. 2, 2021.

The number is a significant drop on the previous year’s accounts (for the year ending Oct. 2020), which showed a restated profit of $291 million.

The figure comes from the company’s financial report, which was filed at the U.K. business registrar, Companies House, on Thursday. The report represents the first full year of accounts in which Disney+ has been operational (the streaming service launched in March 2020) as well as the first full year impacted by the COVID-19 pandemic.

According to the report, which was signed by EMEA exec Sarah Williams, the loss of £244.5 million ($292.7 million) is down to “impairments of investments” as well as an increase in development costs for Disney+ and theatrical content. Williams pointed out the revenues for the latter “will materialize in the coming years.”

The company took an impairment charge of $270 million across “eleven equity investments,” according to the report, although it did not appear to specify what those investments were. This was due to restructuring and “less than satisfactory performance of certain subsidiaries,” although again the report did not specify which subsidiaries these were.

The report also pointed out that, due to the pandemic, its live shows such as “The Lion King” at the Lyceum Theatre in London took a significant hit, as did Shanghai Disneyland, which, according to the report, suffered from “extensive disruptions to park operations” due to COVID-related closures.

On a more positive note, gross revenues were up from $2.7 billion to $3.1 billion, driven “by the success of Disney+” and the recovery of character merchandising revenue as pandemic restrictions were lifted.

Media and entertainment distribution – which includes Disney+ – accounted for approximately $2.5 billion of that gross revenue while the Disney parks made up the remainder with $539 million.

The financial report also set out risks and uncertainties the company faces, which included, among other factors, the ongoing impact of the pandemic as well as wider global economic and political conditions, the legal standing of intellectual property rights, Brexit and “changes in public and consumer tastes and preferences and competitive landscape.”

“The success of our business depends on our ability to consistently distribute filmed entertainment, TV programming, online material, electronic games and consumer products that meet the changing preferences of our broad consumer market,” the report warns. “We face substantial competition in each of our businesses from alternative providers of the products and services we offer and from other forms of entertainment.”

@wabbott editorial comment: "Seems I've heard this sentiment expressed elsewhere..."

 

[wabbott]

Gasparino is wrong about as much as is Cramer.

https://awfulannouncing.com/disney/adam-silver-shortlist-bob-iger-nba.html

NBA’s Adam Silver reportedly on short list to eventually replace Bob Iger​

DisneyNBABy Andrew Bucholtz on 03/04/2023

Following the surprising return of once and future Disney CEO Bob Iger last November, much of the talk quickly became not just about what Iger would do in his second stint at the helm, but who would eventually replace him. On Friday, Charles Gasparino of Fox Business offered an interesting report on that identifying three top candidates as per “media execs.” The candidates he lists are Adam Silver (the NBA commissioner since 2014), Kevin Mayer (a former Disney exec, now co-founder and CEO of Candle Media and chairman of DAZN Group), and Dana Walden (currently co-leader of Disney Entertainment, one of the company’s three divisions.

Iger’s current deal with Disney runs through the end of 2024, but that doesn’t necessarily mean that will be the exact timing of his exit. The 72-year-old Iger first took the Disney helm in 2005, but was initially set to step down from it in 2016, then 2018, then 2019. He finally left the CEO role in February 2020 (talk about timing!) to make way for successor Bob Chapek, but stayed on as executive chairman through the end of 2021, and then served as a strategic advisor before riding back in as CEO last November. So the timing here could depend on a number of factors, from the company’s performance (and the board’s satisfaction or lack thereof with it) to his own health, and it could go shorter or longer than December 2024.

That December 2024 target is a particularly interesting one when it comes to Silver’s candidacy in particular, though. The 60-year-old Silver’s current contract was extended through the 2024 NBA Finals in 2018. So if the NBA doesn’t want to bring him back, or if he wants to move on, the fall to winter of 2024 would be a logical time for him to find something new.

Also, as Gasparino notes, Silver being mentioned as a candidate at all given his sports experience is yet another blow to the “Disney will spin off ESPN” theory. That theory has already been taking its lumps lately. And Mayer’s candidacy can be considered a bit of a blow there too; he did a lot of different things over the years at Disney, but he was heavily involved with sports especially around the launch of ESPN+, and his DAZN role is definitely sports. So, if this report is accurate on Disney targets, two of the three having significant sports backgrounds is a further indication they see a strong future role for sports at the company. It’s not conclusive proof; sports executives handle many different areas of business, and some of them later find lots of success outside the sports realm. But it is a suggestion Disney may value sports experience in their next leader.

The other notable thing there is that while the NBA’s current national TV contracts expire after the 2024-25 season, ESPN parent Disney and TNT parent Warner Bros. Discovery have exclusive negotiating windows that expire in April 2024. So it’s quite possible the next NBA deal gets done while Silver is in office. And given that ESPN is expected to make at least a strong play for NBA rights (and perhaps even more than they currently have), with Iger’s return to the CEO role widely seen as boosting that, it’s possible that Silver could be negotiating with his next employer.

That doesn’t necessarily mean impropriety. Commissioners are far from the only one involved in rights deals, with league teams working on them and owners needing to sign off. And it’s hard to picture a below-market deal with ESPN getting approved. And the next CEO of Disney may not be decided at that point. And so far we have only Gasparino’s report that Disney is considering Silver, which doesn’t include if Silver has interest in the role and doesn’t state how he’s seen relative to those other two listed candidates. But Silver negotiating a deal with ESPN and then leaving for Disney would definitely be at the least awkward from a perception standpoint. It’s not unprecedented for execs to move between places where they’ve previously had work connections, though; Pete Bevacqua went from PGA of America CEO to NBC Sports Group president in 2018, and many media execs have moved into sports roles, including John Wildhack leaving ESPN for Syracuse in 2016 and Mary Anne Turcke left Bell Media for the NFL in 2017.

The reported candidacies of Mayer and Walden are also worth some discussion. Mayer had a notable run at Disney from 1993-2000 (capped by running Disney Internet) and 2005-2020 (capped by running the Direct-to-Consumer & International division, which was key to their over-the-top strategy, including ESPN+). He played major roles in several Disney acquisitions, including the pickup of a controlling stake in BAMTech in 2017 and the purchase of Fox assets (announced in 2017, completed in 2019). Meanwhile, Walden spent 25 years at 20th Century Fox, including as chair and CEO of Fox Television Group, then joined Disney in 2019. She was named chair of Disney General Entertainment last June, and is now co-chair of the larger-still Disney Entertainment with Alan Bergman, a division covering everything the company does outside of sports (ESPN division) and parks/hotels/cruises/consumer products (Parks, Entertainment, and Products division).

Of course, Disney CEO is one of the most important media jobs out there. So there will be lots of interest in that role, and lots of pressure for Iger and the board to find the right successor (especially after their last pick, Chapek, didn’t work out). And it seems likely they’ll consider more candidates than just three, even if this is the “shortlist.” And a lot could change between now and when that decision is made. But it’s certainly notable to see Silver, Mayer, and Walden mentioned as short-listed here.

 

[clarker99]

Gasparino is wrong about as much as is Cramer.

https://awfulannouncing.com/disney/adam-silver-shortlist-bob-iger-nba.html

NBA’s Adam Silver reportedly on short list to eventually replace Bob Iger​

DisneyNBABy Andrew Bucholtz on 03/04/2023

Iger’s current deal with Disney runs through the end of 2024, but that doesn’t necessarily mean that will be the exact timing of his exit. The 72-year-old Iger first took the Disney helm in 2005, but was initially set to step down from it in 2016, then 2018, then 2019. He finally left the CEO role in February 2020 (talk about timing!) to make way for successor Bob Chapek, but stayed on as executive chairman through the end of 2021, and then served as a strategic advisor before riding back in as CEO last November. So the timing here could depend on a number of factors, from the company’s performance (and the board’s satisfaction or lack thereof with it) to his own health, and it could go shorter or longer than December 2024.

That December 2024 target is a particularly interesting one when it comes to Silver’s candidacy in particular, though. The 60-year-old Silver’s current contract was extended through the 2024 NBA Finals in 2018. So if the NBA doesn’t want to bring him back, or if he wants to move on, the fall to winter of 2024 would be a logical time for him to find something new.

Also, as Gasparino notes, Silver being mentioned as a candidate at all given his sports experience is yet another blow to the “Disney will spin off ESPN” theory. That theory has already been taking its lumps lately. And Mayer’s candidacy can be considered a bit of a blow there too; he did a lot of different things over the years at Disney, but he was heavily involved with sports especially around the launch of ESPN+, and his DAZN role is definitely sports. So, if this report is accurate on Disney targets, two of the three having significant sports backgrounds is a further indication they see a strong future role for sports at the company. It’s not conclusive proof; sports executives handle many different areas of business, and some of them later find lots of success outside the sports realm. But it is a suggestion Disney may value sports experience in their next leader.

The other notable thing there is that while the NBA’s current national TV contracts expire after the 2024-25 season, ESPN parent Disney and TNT parent Warner Bros. Discovery have exclusive negotiating windows that expire in April 2024. So it’s quite possible the next NBA deal gets done while Silver is in office. And given that ESPN is expected to make at least a strong play for NBA rights (and perhaps even more than they currently have), with Iger’s return to the CEO role widely seen as boosting that, it’s possible that Silver could be negotiating with his next employer.

That doesn’t necessarily mean impropriety. Commissioners are far from the only one involved in rights deals, with league teams working on them and owners needing to sign off. And it’s hard to picture a below-market deal with ESPN getting approved. And the next CEO of Disney may not be decided at that point. And so far we have only Gasparino’s report that Disney is considering Silver, which doesn’t include if Silver has interest in the role and doesn’t state how he’s seen relative to those other two listed candidates. But Silver negotiating a deal with ESPN and then leaving for Disney would definitely be at the least awkward from a perception standpoint. It’s not unprecedented for execs to move between places where they’ve previously had work connections, though; Pete Bevacqua went from PGA of America CEO to NBC Sports Group president in 2018, and many media execs have moved into sports roles, including John Wildhack leaving ESPN for Syracuse in 2016 and Mary Anne Turcke left Bell Media for the NFL in 2017.

The reported candidacies of Mayer and Walden are also worth some discussion. Mayer had a notable run at Disney from 1993-2000 (capped by running Disney Internet) and 2005-2020 (capped by running the Direct-to-Consumer & International division, which was key to their over-the-top strategy, including ESPN+). He played major roles in several Disney acquisitions, including the pickup of a controlling stake in BAMTech in 2017 and the purchase of Fox assets (announced in 2017, completed in 2019). Meanwhile, Walden spent 25 years at 20th Century Fox, including as chair and CEO of Fox Television Group, then joined Disney in 2019. She was named chair of Disney General Entertainment last June, and is now co-chair of the larger-still Disney Entertainment with Alan Bergman, a division covering everything the company does outside of sports (ESPN division) and parks/hotels/cruises/consumer products (Parks, Entertainment, and Products division).

Of course, Disney CEO is one of the most important media jobs out there. So there will be lots of interest in that role, and lots of pressure for Iger and the board to find the right successor (especially after their last pick, Chapek, didn’t work out). And it seems likely they’ll consider more candidates than just three, even if this is the “shortlist.” And a lot could change between now and when that decision is made. But it’s certainly notable to see Silver, Mayer, and Walden mentioned as short-listed here.

Feel like Walden or Bergman are more likely to be CEO? Maybe Silver could run the ESPN division? Idk what to think on this. Dont have any issues with Silver and he has been in charge while the NBA has grown popularity.

 

[Jrb1979]

Feel like Walden or Bergman are more likely to be CEO? Maybe Silver could run the ESPN division? Idk what to think on this. Dont have any issues with Silver and he has been in charge while the NBA has grown popularity.

I know what to think and it's a bad idea. They need some in charge that understands the parks and doesn't look down on them. As much as Iger has added to the parks I still put him with the rest of those from Burbank that looks at the parks being for Carnies

 

[Bovril82]

Dana hasn't been missed off any shortlist from any source that's been printed since Iger came back.

I'd say she is probably most likely as things stand.

I've never heard her speak publicly. I need to hunt down an interview. They need someone with at least a bit of charisma to run TWDC as was quickly evident with Chapek.

 

[RivShore]

I really don't know Silver but I don't like the idea of a sports centric CEO at all. There is so much more to the company and the sports end can only get smaller and smaller. The other two on his list - Mayer and Walden, I think could be good fits. I would like to see someone not 100% tied into Burbank end up at the top but am open mined on that.

 

[clarker99]

I know what to think and it's a bad idea. They need some in charge that understands the parks and doesn't look down on them. As much as Iger has added to the parks I still put him with the rest of those from Burbank that looks at the parks being for Carnies

Who are you hoping they name CEO?

 

[Jrb1979]

Who are you hoping they name CEO?

I don't know. I think they need to go back to how it worked with Eisner and Wells.

 

[wabbott]

I don't know. I think they need to go back to how it worked with Eisner and Wells.

Back then, there were a lot of folks still at the company with hereditary knowledge and who knew how the "magic" was made, and were able to influence Eisner/Wells. For example, Roy Edward Disney, Dick Nunis, Marty Sklar, Card Walker, and Donn Tatum to name a few. Those folks are all gone now.

I would almost propose that any prospective CEO of the company be required to undergo a six-weeks company history training course, and pass a test prior to interview. The same for the board members now serving.