Amazon, Disney In Talks About ESPN Streaming Partnership

Amazon is in early talks with Disney about a potential ESPN streaming partnership. According to tech website The Information, Amazon could also be purchasing a minority stake in ESPN.

Earlier this summer, Disney CEO Bob Iger said the company is open to selling a portion of its equity in ESPN.

"Transformative work is dealing with businesses that are no-growth businesses and what to do about them, and particularly the linear business, which we are expansive in our thinking about," Iger told CNBC. " may not be core to the company."

"And we're going to look expansively about opportunities there because clearly, it's a business that is going to continue to struggle."

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And struggle it has.

Disney has been losing streaming subscribers for the past three quarters. In fact, Disney+ Hotstar lost 12.5 million paid subscribers during the third quarter alone (ending July 1). This drop in subscribers is the largest ever recorded since the company began disclosing its paid member count in April 2020.

Amazon Grows Its Live Sports Offerings

Now, Iger is looking for strategic partners to help. Iger and ESPN Chairman Jimmy Pitaro have both stated publicly that the "Worldwide Leader in Sports" will move to streaming. It's just a matter of when and who will be involved. And Amazon just might be their answer.

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Amazon has been aggressively pursuing live sports through partnerships with the NFL for Thursday Night Football, the WNBA and European soccer. The company is also reportedly competing with Warner Bros. to get broadcasting rights for NASCAR, and should be a suitor for the NBA's next media rights deal starting in 2025.

Disney is still determining an appropriate price for the new ESPN streaming service. But they are considering charging between $20 and $35 a month — which could make it the most expensive streaming service in the United States.