At this point, it\u2019s too early to know what Josh D\u2019Amaro\u2019s promotion to Disney CEO will mean for ESPN.<\/p>\n
One prominent industry analyst, however, is predicting that it could lead to a major change.<\/p>\n
Appearing on The Town with Matthew Belloni<\/a>, LightShed Partners\u2019 Rich Greenfield discussed Disney\u2019s announcement that D\u2019Amaro will succeed Bob Iger<\/a> as the company\u2019s top executive this March. And while noting the inherent challenges that ESPN faces in the current media landscape, the analyst said he believes the network will ultimately get spun off under the direction of its parent company\u2019s incoming CEO.<\/p>\n \u201cI believe Josh D\u2019Amaro understands everything that you and I are talking about,\u201d Greenfield said. \u201cAnd I believe \u2014 I don\u2019t know if it happens in the next six months in their fiscal year \u2014 but I would say over the next 18 months, I would be shocked if Disney didn\u2019t move forward with a separation of the company to resemble what Warner did and then use that separation to invest in gaming or some other priority that when Josh looks at it, where he can put his stamp and say, \u2018this is what the Disney of the next decade is going to look like.’\u201d<\/p>\n After Belloni pointed out that Iger had already rejected such a strategy, Greenfield responded, \u201cWho\u2019s in charge now?\u201d before noting that the circumstances have since changed.<\/p>\n \u201cI think ESPN is very well set up for the next decade in terms of sports rights. And I think the DTC has launched, I think now would be the time,\u201d he said. \u201cLike, I think he\u2019s achieved what he wanted to achieve and I think this is the right time to set that asset free.\u201d<\/p>\n As for who could potentially buy or strategically partner with a spun-off ESPN, it\u2019s too early to say. Greenfield, however, noted that Comcast has signaled that it\u2019s open for business, while there will be an odd man out once Netflix and Paramount\u2019s respective pursuits of Warner Bros. are settled. Belloni also stated that some within the industry believe that ESPN\u2019s recently approved equity deal with the NFL<\/a> was largely about the network obtaining a $30 billion valuation in advance of a potential spinoff like the one Greenfield is forecasting.<\/p>\n