ESPN valued at $24 billion, Apple and Verizon among likely buyers

According to BofA Global Research, the Disney-controlled ESPN sports network is currently exploring opportunities to attract investments from various sources, including sports leagues, tech companies like Apple, and telecom giants such as Verizon, with a potential valuation of $24 billion in mind.

In an effort to attract external investors, ESPN recently unveiled its financial report for October 2023. This report revealed a decline in both sales and profits at the network, despite its status as the crown jewel of Disney's traditional TV business.

Disney's CEO, Bob Iger, has expressed his commitment to retaining ESPN and is actively pursuing the development of a streaming app for the network. This endeavor may involve forming a joint venture or selling a minority stake in the network. If the latter option is pursued, Disney would need to sell a 36% stake while maintaining a controlling interest of 51% in the network. It's worth noting that U.S. media company Hearst currently holds a 20% stake in the sports network.

In a separate development, Disney has initiated the appraisal process for its ownership stake in Hulu. The company has publicly announced its intention to acquire Comcast's one-third ownership stake in the Hulu streaming service, initiating an appraisal procedure that is expected to extend into the next year. According to Disney's statement released on Wednesday, the company anticipates paying at least $8.61 billion for this stake, which includes capital contributions owed to Disney by Comcast. It's important to highlight that a prior agreement between the two companies established that the total valuation of Hulu would not fall below $27.5 billion.