Go Woke, Go Broke: Disney May Be Forced to Dump 'Cash Cow' Asset - Report

Things seem to be getting worse and worse for the Walt Disney Company, as a major report has emerged indicating that the company may ditch some of its most profitable assets in the new year.

On Thursday, Fox Business reported that Wells Fargo analysts predicted that Disney would part ways with ESPN and ABC in late 2023 as part of an effort by returning CEO Bob Iger to focus on content and cost rationalization.

While ESPN, which is 80 percent owned by Disney, has been described as a “cash cow” for the company, Fox Business states that “linear and sports trends are diverging from the core IP.”

Thus, the analysts at Wells Fargo have concluded that “severing the company is increasingly logical.” The report also notes that ESPN and ABC are integrally linked, and the different ways of monetization between licensed and owned IPs will eventually lead to the spinoff of ESPN and ABC from the Disney company.