Disney boss Bob Iger dismissed rumours that the group could sell sports channel ESPN as part of a large-scale reshuffle.
ESPN will become one of three core segments of The Walt Disney Company (NYSE:DIS), alongside an entertainment division and a parks, experiences and products wing, but will not be sold, he told investors on a first-quarter earnings call.
“ESPN is a differentiator for this company. It is the best brands in television and it is one of the brands in sports. It continues to create real value for us,” Iger said.
“The brand of ESPN is very healthy. And the programming of ESPN is very healthy. We just have to figure out how to monetize it in a continuing disruptive world.”
According to Iger, ESPN’s sale had indeed been explored in his absence, but plans to offload the brand had been scrapped after “examining thoroughly”.
Disney reported revenue growth of 8% in the first quarter, although its streaming service saw its first quarterly decline in subscribers.
In light of the figures, Iger said the company would target US$5.5bn in cost savings, including by cutting 7,000 jobs, or roughly 3% of its workforce, and through restructuring.