ESPN, the sports network of Walt Disney (NYSE:DIS), has reportedly been in discussion with both the National Basketball Association and the National Football League about potential strategic partnerships, according to CNBC. This is an unusual move, but it could help ESPN secure top-tier sports content amidst a complex media landscape. ESPN’s discussions have revolved around various partnerships and investment structures, including possible minority stakes for the leagues in ESPN’s business.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
On the other hand, there are complications. For instance, the NFL’s ongoing search for a partner in its own media assets like NFL Network, NFL.com, and RedZone coincides with these talks. While these partnerships could provide a way forward for ESPN, potential conflicts of interest could arise if the leagues take equity stakes in ESPN. This situation could potentially ruffle feathers among competitors vying for sports broadcasting rights, including traditional media giants like NBCUniversal (NASDAQ:CMCSA), Fox (NASDAQ:FOX), and CBS (NYSE:VIAC), as well as rising players in the sports streaming arena such as Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).
Furthermore, ESPN would face increased pressure to maintain objective sports coverage, especially for its partner leagues. Another possible issue could be the expectation of Major League Baseball and the National Hockey League for inclusion in any such deal.
What is the Target Price for DIS Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DIS stock based on 12 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $120.53 per share implies 38.27% upside potential.
