Disney said to talk with Amazon about ESPN partnership
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Walt Disney (NYSE:DIS) has reportedly engaged in preliminary talks with Amazon.com (NASDAQ:AMZN) about teaming up on a streaming offering of sports-broadcasting stalwart ESPN.
Disney (DIS) has signaled that it's seeking a strategic partner who can help take the sports service into the streaming world, as well as potentially take a minority financial stake in the operation. (Chatter about spinning off ESPN completely has been rebuffed by Disney CEO Bob Iger, who has said sports is key to the company.)
Now Amazon (AMZN) could offer ESPN through one of its streaming offerings, and potentially take that minority stake, The Information reported.
That's a move that would not only clear up ESPN's future path somewhat but also signal a change in sports' competitive dynamics, with Amazon making increasing moves into sports streaming itself.
Meanwhile, ESPN is considering an eye-opening potential price for a streaming service: some $20-$35 per month, according to the report, which would easily make it the most expensive U.S. streaming offering yet. Unlike its current ESPN+ service, lower priced and focusing more on niche sports, an expensive ESPN streaming service would be comprehensive and offer the same programming as the cable channels.
As for the financial part of ESPN, likely no more than 30% of the sports service is up for consideration in partnership discussions, while Hearst would likely keep its 20% stake, The Information noted.

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