Why Disney's 'Melting Iceberg' ESPN Is Unlikely To Attract Apple As Buyer: Analyst Breaks It Down
Portfolio Pulse from Shanthi Rexaline
Disney (NYSE:DIS) is rumored to be considering offloading its ESPN cable sports channel. KeyBanc Capital Markets analyst Brandon Nispel estimates ESPN's valuation at $30 billion, with a fair value range of $28 billion to $36 billion. ESPN's revenue is estimated at $16 billion, with most growth expected from the direct-to-consumer business. Nispel also suggests that Apple (NASDAQ:AAPL) is unlikely to buy ESPN, and that ESPN's outlook could worsen if its distribution agreement with Charter Communications (NASDAQ:CHTR) isn't renewed.
September 05, 2023 | 6:09 am
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NEUTRAL IMPACT
Apple is unlikely to buy ESPN, according to KeyBanc analyst.
The news that Apple is unlikely to buy ESPN does not directly impact Apple's operations or financials, hence the neutral score.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
ESPN's outlook could worsen if its distribution agreement with Charter Communications isn't renewed.
If the distribution agreement between ESPN and Charter Communications isn't renewed, it could negatively impact Charter's revenues and stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Disney is considering offloading ESPN, which could impact its restructuring plans and overall value.
The potential sale of ESPN could impact Disney's restructuring plans and overall value. This could lead to a decrease in Disney's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100