Disney's earnings call on Wednesday was strong for the company, but another main topic of the call was the discussion about the future of ESPN.
In July, Disney CEO Bob Iger expressed that the company was looking for "strategic partners" for its sports network to help with distribution and content. He was asked again during the earnings call about the status of the partnership, which could mean a sale of equity stake in ESPN.
Iger first said that the partnership's goal is really to prepare ESPN as it moves its product into a direct-to-consumer service, which he said is "inevitable." Reports have suggested 2025 to be the likely year that Disney moves to DTC.
"We believe that we have opportunities to strengthen our hand with entities that either provide us with technology, marketing support for instance, or companies or entities, I should say, that can provide us with more content," Iger said.
Related: Disney earnings top forecast as ESPN-lead sports division sees solid gains; stock leaps
He followed by saying that ESPN has "engaged with a number of different entities" and that there is "significant interest out there."
Reports have suggested that tech companies like Amazon and Apple are in the mix when it comes to acquiring stake in ESPN. Some analysts have even suggested that a tech giant like Apple could scoop up the whole of ESPN from Disney.
The New York Post also reported that telecommunications companies like Verizon have also been linked to ESPN. Linking with a major cellular network would give ESPN the ability to improve the distribution of its coming DTC packages by including them onto cellular plans of its partner.
Related: Disney's plans for ESPN are becoming more clear
A report in July by CNBC also suggested that ESPN could partner with major sports leagues like the NBA, NFL, and MLB. On Wednesday, Front Office Sports reported that talks between ESPN and the NFL and NBA are "heating up."
Partnering with leagues could create several points of conflict considering the media rights deals that these media outlets pay these major leagues. ESPN also employees journalists that report on these leagues, a task that could alter if the leagues became part-owners of their employer.
Iger did not mention any names of potential partners for ESPN during the earnings call, but teased that Disney would say more "in the coming months."
"I don't want to say much more right now, except again, there's serious interest out there. And I think there's a path or a path to deals, but we're working through them. And obviously, as soon as they are completed, we'll let everybody know," Iger said.
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
