Disney Holds Any Sale of ABC, ESPN and Completes Full Ownership of Hulu

THE SIGNAL

The Play

Disney CEO Bob Iger confirmed that the company will not sell ABC, ESPN, or its core linear television assets, reaffirming its commitment to traditional media platforms despite industry speculation. According to The Hollywood Reporter, Iger emphasized that these assets remain “core to Disney,” framing them as essential infrastructure for future streaming bundles. In parallel, Disney finalized its acquisition of Comcast’s remaining 33 percent stake in Hulu by paying an additional $438.7 million, fully integrating the streaming service into its portfolio.

The Context

The move to retain ABC and ESPN follows mounting rumors fueled by Warner Bros Discovery’s restructuring. Iger made it clear that Disney’s future lies in embracing all channels—linear and digital. As Hollywood Reporter notes, the linear networks will provide critical carriage leverage for Disney’s upcoming streaming bundles, including a combined Hulu‑Disney+‑ESPN package.

Meanwhile, Disney’s long-running arbitration with Comcast concluded with a third‑party valuation that placed Hulu’s total worth around $29 billion. Disney’s final $438.7 million payment brings full control of a service serving 55 million subscribers. Reuters confirms that the buy‑out is expected to close before July 24, just in time for integration plans tied to new ESPN digital offerings.

The Takeaway

Disney’s dual move is a signal of evolving media strategy:

• Linear and streaming as bedrock
  By retaining ABC and ESPN, Disney positions them as essential anchors in its streaming ecosystem. ESPN, in particular, will feed into the upcoming ESPN Flagship streaming service launching this fall. This ensures Disney can bundle linear and digital rights while maintaining linear ad revenue.

• Streamlined streaming portfolio
  Full ownership of Hulu allows for easier bundling and product integration with Disney+ and ESPN. Analysts note the deal simplifies the technical and marketing challenges of weaving three platforms into one cohesive offering—something Disney has prioritized since Iger’s return.

• Healthy DTC outlook
  With Hulu’s valuation now finalized, Disney shifts focus from disputes to profitability. The enhanced integration of Hulu content into Disney+ and ESPN’s new streaming package supports a unified direct-to-consumer experience. This matters at a time when the DTC business turned profitable in Q1 and is projected to exceed $1 billion in annual profit.

• Cable’s twilight, but not desertion
  Iger’s refocus on linear suggests a hybrid mindset. While cord-cutting continues, linear networks still deliver high-margin ad revenue and hold binding carriage agreements. Disney is not doubling down on cable—they are evolving its role.

• Competitive leverage retained
  Owning both ESPN and Hulu intensifies Disney’s bargaining power with distributors and advertisers. ESPN remains the powerhouse in live sports, Hulu brings subscription and ad-based viewers, and ABC provides broad reach with news and entertainment. The scale allows Disney to structure package offerings that competitors like Netflix and Amazon cannot easily replicate.

Disney’s strategy highlights the diminishing cleavage between legacy and digital media. By holding linear assets, buying up streaming equity, and preparing new bundled services, Disney aims to tightly integrate its distribution layers. The question now is whether this hybrid model can outpace pure-play streaming rivals and retain profitability as rights costs rise.