Disney’s (NYSE:DIS) ESPN is reportedly in advanced negotiations with the National Football League (NFL). The NFL might acquire a stake in ESPN, according to a report by the New York Post.
As part of the potential agreement, ESPN will assume control of NFL Media, which encompasses the NFL Network. In return, the NFL would secure a stake in ESPN. This strategic collaboration is in line with Disney’s strategy of turning ESPN into a leading digital sports platform.
Though the ongoing discussions between the two entities are in full swing, it is possible that the deal could take several months before it is finalized.
Disney to Turn ESPN Into Top Sports Platform
Disney is reshaping ESPN to become the premier digital sports platform globally. To achieve this goal, the media and entertainment giant is actively pursuing strategic partnerships to enhance its content creation, distribution, marketing, and technology.
Highlighting the strength of ESPN, Disney’s management said during the Q4 Fiscal 2023 conference call that ESPN’s domestic business recorded solid revenue and operating income growth in Fiscal 2022 and Fiscal 2023.
Further, Fiscal 2023 marked a significant milestone for ESPN, wherein it achieved its highest overall viewership in four years. Notably, Disney also expanded its leading share of sports viewership in Fiscal 2023 across ESPN networks.
Is Disney Stock a Good Buy Now?
Disney is taking strategic initiatives to improve its financial performance, which is why the Street is bullish about its prospects.
DIS stock has 16 Buy and five Hold recommendations for a Strong Buy consensus rating. Moreover, analysts’ average price target of $107.89 implies 19.41% upside potential from current levels.
