Over the past decade, there has been much speculation about whether Disney would spin off or sell ESPN. This speculation increased during the company's stock dips in 2015 and 2016, as the rising costs of ESPN and the trend of cord-cutting were cited as contributing factors. Recently, the talk of a potential ESPN spinoff has resurfaced, with Wells Fargo analyst Steven Cahall suggesting in a note to clients that it is a "reasonably probable late-’23 event."

Cahall believes that separating ESPN and ABC from the rest of Disney would allow for the remaining company to become a "pureplay IP company," while ESPN and ABC could be valued at a multiple of 6-7 times their enterprise value/earnings before interest, taxes, depreciation, and amortization (EBITDA). This move would also allow investors to more easily determine the decline of linear networks, such as ESPN and ABC, as profits from direct-to-consumer platforms improve.

However, it is important to note that this is simply an analyst's suggestion and it is not clear if Disney is seriously considering a spinoff of ESPN. In the past, the company has denied that such a move is in the works. Additionally, the recent return of Bob Iger as CEO of Disney may impact any potential decisions about the future of ESPN and the rest of the company. It remains to be seen what changes Iger and his team may make to Disney's portfolio in the long term.