Benzinga - by Chris Katje, Benzinga Staff Writer.
Media giant The Walt Disney Company (NYSE:DIS) welcomed back CEO Bob Iger to lead the company in November 2022, parting ways with then CEO Bob Chapek.
Speaking publicly about Disney for the first time since leaving the company, Chapek was critical of Iger's plan for the ESPN segment.
What Happened: Since taking over leadership at Disney, Iger has publicly criticized Chapek, highlighting their differing opinions, which has caught the attention of investors.
A new documentary from CNBC titled "ESPN's Fight for Dominance" interviewed former and current Disney executives to hear on the media company's plan for streaming and growth.
"As millions of Americans cancel their cable TV subscriptions and big tech companies like Amazon and YouTube bid on live sports, ESPN has had to adjust – or decline along with the pay-TV business," a description for the documentary reads.
Chapek told CNBC that he doesn't think Iger's strategy for future growth at ESPN will work.
"Strategically, I don't really see a benefit in bringing on yet another minority partner into ESPN," Chapek said.
ESPN is 80% owned by Disney and 20% owned by Hearst Communications.
"The brand is so central. It is so powerful. It is so beloved by so many sports fans."
Chapek said that a transition from cable to streaming will be met with challenges.
The former CEO said he didn't sell ESPN when he was in charge, as the brand was bringing in cash for Disney and was in debt from the Fox acquisition.
Chapek mentioned that Disney’s interest in finding a partner for ESPN might stem from the need for cash to complete its acquisition of the remaining Hulu stake from Comcast.
One plan Chapek had for ESPN was to make it similar to AppleTV as a hub for all sports content, regardless of who owns the streaming rights.
"I think ESPN should be that source for a central clearinghouse."
Related Link: Disney Not The Happiest Place On Earth For CEOs: Iger, Chapek Battle Over A Shower
Why It's Important: Iger previously said that Disney was considering selling a minority stake in ESPN as it pushes for a new direct-to-consumer sports platform launching in 2025.
Talks by Disney for a stake in ESPN include conversations with the National Basketball Association and National Football League, according to CNBC.
Disney believes that having another partner or two for ESPN could help with content, marketing and distribution of the new direct-to-consumer platform.
Current ESPN President Jimmy Pitaro also spoke to CNBC for the documentary. Pitaro said that ESPN doesn't have to sell equity in the sports brand.
"It's not about equity. It's not about these partners taking ownership interest in ESPN. That is something, as Bob (Iger) has said, that we are very much open to, but this is about partnership and accelerating the launch of the adoption of the ESPN flagship," Pitaro said.
Pitaro said the media industry is in a transition phase and ESPN has to transition to digital.
"We're seeing declines in the traditional ecosystem, cable and satellite universe. There's a transition to digital. That is by far the biggest component of our future."
DIS Price Action: Disney shares closed at $115.85 on Friday, versus a 52-week trading range of $78.73 to $117.36.
Read Next: Bob Iger’s Success At Disney: New Document Reveals CEO’s Biggest Wins According To The Man Himself
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