Dylan, I read with great interest your recent chat with Bill Cohan about a new theory for how Disney eventually spins out ESPN and yet continues to draw cash from it. I realize that this is all still theoretical hypothetical, and that Disney denies it has any interest in a separation, but can you articulate more fully the strategic concept?
Yes, so first let’s state the pros and cons of ESPN. Pro: it’s a cash cow for Disney. Con: It’s a low-to-zero growth business that keeps Disney tied to a linear business that’s in irreversible decline, and thus drags down its stock by tying it to a linear (rather than streaming) multiple.
