- Positive signs abound for Disney as the country reopens, pent-up demand takes hold, and consumer spending soars.
- While Disney stock is flying high and has room to run over the long term, ESPN may become a drag on future earnings as it was in the recent past.
- Sports and sports ratings have major issues including short-term political discord and long-term secular decline among the younger audience.
- Fortuitously, sports gambling has exploded and this trend may be the saving grace for ESPN - if it has staying power.
- I expect calls for a spin-off or sale of the network to resume in the near future.
For further details see:
Disney: Time To Sell ESPN? Politics, Trends May Again Hurt Profitability