Three entertainment companies, Fox Corp. (NASDAQ:FOXA), Warner Bros. Discovery (NASDAQ:WBD), and Walt Disney’s (NYSE:DIS) subsidiary ESPN, have entered into a joint venture to launch a sports streaming service later in 2024. Following the news, shares of FOXA and WBD gained 3.8% and 3%, respectively, in yesterday’s extended trading session, while DIS stock fell over 1%.
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It is worth mentioning that the news comes ahead of the release of Disney and Fox’s earnings results today. DIS will post fiscal Q1 numbers after the market closes. Meanwhile, WBD is expected to release its quarterly results on February 23.
Details of the Agreement
According to the terms of the agreement, each of the three companies will hold one-third ownership in the new venture. The new streaming service will be made available under a new brand name and will be controlled by an independent management team.
The platform will include all the sports networks of DIS, FOX, and WBD. In addition, it will air high-profile sports such as the National Football League (NFL), Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL), among others. Additionally, subscribers would have the option to bundle the product with Disney+, Hulu, or Max.
Which Entertainment Stock is the Best?
Out of the three stocks, Wall Street analysts are currently bullish on Disney stock. It has a Strong Buy consensus rating based on 15 Buys and five Holds. Also, the average DIS stock price target of $108.29 implies 9.1% upside potential.
