Disney’s ESPN announces major deals with NFL, WWE, as entertainment company’s profits soar
Disney’s ESPN has recently made significant strides with two groundbreaking agreements, coinciding with the strong financial performance of its parent company in the fiscal third quarter. The success was largely attributed to the growth of its streaming service and domestic theme parks.
The NFL revealed on Tuesday night that it has reached a nonbinding agreement with ESPN. As per the terms, ESPN will acquire NFL Network, NFL Fantasy, and the rights to distribute the RedZone channel to cable and satellite operators, while the NFL will receive a 10% equity stake in ESPN.
While the final agreement is pending negotiation and approval from NFL owners, NFL Commissioner Roger Goodell expressed optimism, stating, “Sometimes great things take a long time to get to the point where it’s right. And we both feel that it is at this stage.”
In another landmark deal, The Walt Disney Company announced a significant rights agreement with ESPN and the WWE. Under this agreement, ESPN platforms will become the exclusive U.S. domestic home for all WWE Premium Live Events, including popular events like “WrestleMania” and “SummerSlam,” starting in 2026.
Chairman of ESPN, Jimmy Pitaro, emphasized the importance of this agreement in boosting their content portfolio and driving their streaming future. Mark Shapiro, President and COO of TKO Group Holdings, parent company of WWE, also shared his excitement about reinforcing ESPN’s content offerings with WWE Premium Live Events.
Disney’s financial performance for the third quarter showcased impressive results, with earnings of $5.26 billion, or $2.92 per share, compared to $2.62 billion, or $1.43 per share, in the previous year. The company exceeded analyst expectations, reporting earnings of $1.61 per share.
The direct-to-consumer business, including Disney+ and Hulu, saw a quarterly operating income of $346 million, a significant improvement from a loss of $19 million in the previous year. Disney+ reported a total of 128 million paid subscribers, with a modest increase in international subscriptions.
Looking ahead, Disney anticipates further growth in Disney+ and Hulu subscriptions, with a projected increase of more than 10 million in the fourth quarter. Additionally, the company plans to discontinue reporting paid subscriber numbers for its streaming services, citing the metric’s decreasing relevance in evaluating business performance.
The Experiences division, encompassing Disney’s global theme parks and other ventures, reported a 13% increase in operating income, with notable growth in domestic parks. Disney also announced plans for a new theme park in Abu Dhabi, highlighting its commitment to expansion and innovation.
With a revised adjusted earnings forecast for fiscal 2025, Disney aims to continue its growth trajectory and build on its success across diverse business segments. As the company navigates leadership transitions, the search for a successor to CEO Bob Iger remains a key focus, with both internal and external candidates under consideration.
