The Walt Disney Company’s (NYSE:DIS) ESPN network is close to striking a deal on broadcast rights with TGL, the emerging golf league formed by golf legends Tiger Woods and Rory Mcllroy, the Financial Times reported. The deal would make ESPN a media partner of TGL, which is gearing up for a launch in 2024.
Potential Deal Between ESPN and TGL
The value, duration, and other terms of the deal are expected to be finalized in the weeks ahead. Currently, not much information is available on the number of matches that would be aired on ESPN’s cable networks or its streaming platforms.
The potential partnership between ESPN and TGL comes at a crucial time for Disney, as CEO Bob Iger is evaluating strategic options for its linear broadcast and cable networks and focusing on making the company’s streaming business profitable.
Disney’s traditional networks business has been under pressure due to the cord-cutting phenomenon and a weak advertising market. Earlier this year, Iger hinted that Disney’s TV networks, excluding ESPN, may not be core to the company’s business anymore. In an interview with CNBC in July, Iger said that the company was open to selling a minority stake in ESPN to strategic partners. Disney owns 80% of ESPN, while the remaining 20% is owned by Hearst Communications.
During the Fiscal Q3 conference call on August 9, Iger said that the company is considering potential strategic partnerships for ESPN, such that it retains control of the network. He added that the company has received notable interest from many different entities.
The CEO continues to believe in the strength of the sports business and emphasized that the decision to take the company’s ESPN flagship channels direct-to-consumer (streaming) is “not a matter of if but when.” Iger disclosed that the company is looking at various aspects of this decision, including pricing and timing.
With Disney taking several measures to improve its business, let’s take a look at Wall Street analysts’ ratings for the stock.
What is the Price Target for DIS Stock?
Wall Street is cautiously optimistic on Disney stock, with a Moderate Buy consensus rating based on 15 Buys, five Holds, and two Sells. The average price target of $107.35 implies about 34% upside. Shares are down 8% year-to-date.
