Former Disney CEO Bob Chapek broke his silence in his first public comments since being fired in 2022, announcing that current president Bob Iger is seeking a strategic partner for ESPN. criticized the move.
Chapek said. CNBC He said he sees no reason for Disney-owned Sports Channel to add a minority partner.
“Strategically, I don’t see much benefit in bringing yet another minority partner into ESPN,” Chapek said as part of the CNBC documentary “ESPN’s Fight for Dominance,” which chronicled CNBC’s digital strategy. Published on Thursday.
After Chapek was fired in November 2022, former CEO Iger returned to management and simplified Disney’s organization, splitting ESPN into its own segments. Chapek said Disney plans to sell all or part of ESPN and believes Iger’s move to separate ESPN from the rest of entertainment is a first step.
He continued: “The brand is very central. It’s very strong. It’s loved by a lot of sports fans. But at the same time, the transition from the cable world to the streaming world is probably going to be a difficult one. I believe we need to recognize that.”
CNBC asked Chapek why he didn’t sell ESPN while he was CEO. At the time, ESPN was bringing in much-needed cash for Disney, so selling it wasn’t practical, Chapek said.
The former executive said Disney was in debt from its acquisition of Fox, a big-ticket deal that Mr. Iger canceled during his previous term, and that the company had lost money just as the COVID-19 pandemic hit. He pointed out that the company is busy formulating strategies to stem losses.
Last summer, Mr. Iger expressed interest in bringing additional minority partners to ESPN in addition to Mr. Hearst. But Chapek said he didn’t think there was any strategic benefit to this.
The former Disney president said ESPN should instead become the central hub for many sporting events. He compared this potential version of ESPN to Apple TV. Apple TV lets users search for a movie or show and directs them to the streaming service where it’s available.
“I always look at business through a consumer-first lens,” Chapek said. “As the number of broadcasters broadcasting sporting events increases, and as broadcast complexity and schedules become increasingly distributed, I sometimes wonder if we are providing a very suboptimal experience for consumers. .”
