The Dawn of a New Disney: Will ESPN and ABC Go Solo Post-Iger?

The entertainment world is buzzing with a bold prediction from a prominent industry voice: Disney, under new leadership following Bob Iger's anticipated departure, is poised to undergo a transformative strategic shift that could see it shedding some of its most iconic traditional assets. Rich Greenfield, a seasoned media analyst at LightShed Partners, asserts that both ESPN and the ABC broadcast network are likely candidates for spin-offs, heralding a new era for the House of Mouse.

Greenfield's analysis, shared in a recent CNBC segment, paints a picture of a future Disney that is leaner, more agile, and intensely focused on its direct-to-consumer (DTC) streaming platforms.

The argument is compelling: in an increasingly fragmented media landscape, the traditional linear television business, with its hefty carriage fees, declining subscriber bases, and immense content costs—especially for sports rights at ESPN—is becoming an anchor rather than an engine for growth.

For decades, ESPN was a crown jewel in Disney's portfolio, a powerhouse that commanded premium fees and drew massive audiences.

However, as cord-cutting accelerates and consumers flock to streaming, the value proposition of a traditional sports network within a conglomerate focused on global streaming dominance becomes increasingly complex. A spin-off, Greenfield suggests, could allow ESPN to pursue its own focused strategy, potentially exploring direct-to-consumer models more aggressively without being constrained by Disney's broader corporate structure or valuation concerns.

Similarly, the ABC network, once the cornerstone of Disney's broadcast presence, faces its own set of challenges.

The economics of network television are evolving rapidly, with advertising dollars shifting to digital platforms and programming costs remaining high. Detaching ABC could free Disney to concentrate its resources on Disney+, Hulu, and its international streaming expansion, which are widely considered to be the future growth drivers for the company.

The proposed timing "post-Iger" is critical.

Bob Iger, having returned to steer Disney through a turbulent period, has been instrumental in shaping its streaming strategy. However, a new CEO might be more inclined to make the kind of decisive, value-unlocking moves that involve divesting legacy assets. Such a move would signal to investors a clear commitment to a digital-first future, potentially boosting Disney's valuation by removing the drag of traditional media businesses.

Greenfield's prediction is more than just speculation; it reflects a broader industry trend where media conglomerates are re-evaluating their portfolios in the face of seismic technological shifts.

The move would not only streamline Disney but could also create two new, independent entities—a dedicated sports content leader in ESPN and a rejuvenated broadcast/entertainment player in ABC—each better positioned to navigate their respective markets. While Disney has not officially commented on such plans, the prospect of a post-Iger strategic overhaul involving major divestitures is certainly a topic that will continue to dominate discussions in media circles.