Walt Disney CEO Robert Iger on Thursday (July 13) announced the company's intention to retain ESPN and explore potential collaborations with strategic partners. The company is open to potentially selling an equity stake in ESPN and is looking for a strategic partner in the business as it prepares to transition the sports network to streaming.

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Iger made the comments in an interview with CNBC shortly after his contract as Disney boss was extended till 2026.

Iger has been spearheading Disney's post-pandemic revival efforts since his return from retirement in 2022.

"We're going to be open-minded, not necessarily about spinning ESPN off, but about seeking strategic partners who can assist us with distribution or content," Iger expressed.

He emphasised the company's commitment to remaining in the sports business, signalling Disney's determination to adapt to the evolving media landscape.

He said sports is still a valuable business for Disney, despite the challenges posed by cord-cutting and rising rights fees.

ESPN, which has been a major source of revenue and profit for Disney for decades, has faced pressure from declining cable subscribers and increasing fees paid to sports leagues.

In response, ESPN has laid off about 20 of its on-air talent last month, following two previous rounds of job cuts that eliminated 7,000 positions. The network’s top NBA colour commentator, former coach Jeff Van Gundy and reporter Suzy Kolber, were among those who were laid off.

(Edited by : Shoma Bhattacharjee)