Disney/ESPN (DIS) Mega MLB Deal a Win-Win
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Big news in the sports world Tuesday was that Walt Disney's (NYSE: DIS) ESPN reached an 8-year deal with the Major League Baseball worth $5.6 billion. The deal will expand the networks coverage of baseball and help it fend off competition from NBC, CBS, and other networks trying to step up their sports broadcasting game. ESPN is by far the dominant sports channel, but if other networks have their way, that gap will narrow.
At $5.6 billion, today's deal isn't cheap and nearly doubles what it currently pays for baseball rights. The deal will allow ESPN more games, studio programming and online coverage through 2021, and will allow it access to more highlight footage and fewer blackouts.
In short, the deal is probably a win for baseball fans, and if it helps ESPN maintain its untouchable status as the sports network of choice - it could be good for parent Disney too. With a few extra billion dollars in their pocket, Major League Baseball probably isn't complaining either. Can someone say win, win, win. Don't you love the way Disney does business? Never mind that they plan to crush their competition.
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At $5.6 billion, today's deal isn't cheap and nearly doubles what it currently pays for baseball rights. The deal will allow ESPN more games, studio programming and online coverage through 2021, and will allow it access to more highlight footage and fewer blackouts.
In short, the deal is probably a win for baseball fans, and if it helps ESPN maintain its untouchable status as the sports network of choice - it could be good for parent Disney too. With a few extra billion dollars in their pocket, Major League Baseball probably isn't complaining either. Can someone say win, win, win. Don't you love the way Disney does business? Never mind that they plan to crush their competition.
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