Credit: Inside the MagicNelson Peltz, the activist billionaire investor who is currently trying to take over the Disney board of directors, plans to get the company to farm off ESPN+ to one of its main competitors.
According to a new report from Bloomberg, Nelson Peltz, whose Trian Fund Management controls three billion dollars worth of stock in the Walt Disney Company, wants to force the House of Mouse to allow ESPN+ to be bundled with another major streaming platform, like Netflix. While sources spoke on condition of anonymity, it seems clear that Peltz has some pretty major plans for the future of Disney streaming if he gets the board seat he is currently campaigning for, along with former CFO Jay Rasulo.
Related: Disney Sends ‘Power Move’ Message to Billionaire Investor
Trian Fund Management is reportedly planning to release a dramatic proposal paper to the Disney board of directors, arguing that the company’s multi-billion plans to revitalize its theme parks are too risky of a strategy to bring it back to financial solvency. Instead, Nelson Peltz wants to company to begin lending out a massive brand asset like ESPN to the competition.
While Peltz and Trian may be wagering that ESPN is more valuable to Disney as something to monetize with its rivals, current CEO Bob Iger reportedly views it as one of the company’s most important branches for the future. Reportedly, Iger wants to eventually create a “super-app” streaming service that will bundle Hulu, Disney+, and ESPN+ into a single (very expensive) subscription cost for consumers.
Related: Disney Hires Lawyers to Officially Give Up Streaming Service
Disney currently offers a discounted bundle that includes Hulu, Disney+, and its sports network, but each streamer is still its own specific service. Hulu is currently in beta tests to see if family-oriented Disney+ subscribers will want the services merged, which means that ESPN+ joining them is something of a certainty.
That is, if Nelson Peltz and Trian don’t get their way and sell off ESPN+ to Netflix, Max, or the highest bidder.
Do you think it’s a good idea for Disney to partner ESPN+ with a rival? Tell us your thoughts in the comments below!