Disney brings back Tom Staggs, Kevin Mayer in ESPN consulting role
Walt Disney Co. Chief Executive Bob Iger has hired two former lieutenants — Tom Staggs and Kevin Mayer — as consultants to help the company analyze strategic options for ESPN, according to two people familiar with the plans who were not authorized to comment.
The former Disney colleagues, who now run Los Angeles-based Candle Media, will work with ESPN Chief Jimmy Pitaro to evaluate strategic partners for the cable sports operation, the knowledgeable sources said.
Both executives have deep ties in investment circles. Candle Media is backed by private equity firm Blackstone.
Disney intends to keep ESPN, which has rights to the most popular sports leagues in America, according to Iger. The sports behemoth is still hugely popular and profitable, but it faces significant headwinds because its primary revenue stream is under threat as more and more consumers ditch their cable and satellite TV subscriptions in favor of streaming apps.
The sports juggernaut last month laid off roughly 20 high-profile commentators, including former New York Knicks coach Jeff Van Gundy, former NBA player Jalen Rose and popular NFL broadcaster Suzy Kolber.
The sports media unit remains profitable and part of Disney. But expect the company to keep a close eye on its financial performance.
During an appearance on CNBC earlier this month, Iger said the company was open to inviting in “strategic partners that could either help us with distribution or content” for ESPN.
Iger has acknowledged that ESPN eventually will be delivered directly to consumers, bypassing its longtime partners — the pay-TV companies. However, Iger stopped short of announcing a timeline for that tectonic shift.
Pay-TV providers, including DirecTV, Comcast Xfinity and Charter Spectrum, pay stiff fees to distribute the ESPN channels to their customers.
More than a decade ago, ESPN was distributed in nearly 100 million cable homes. Now, the main ESPN channels are carried in about 70 million homes, and analysts expect the number to continue to fall.
The streaming service ESPN+ has about 25 million subscribers, according to the company.
Staggs and Mayer will continue to run Candle Media, which includes Hello Sunshine, the media company launched by Reese Witherspoon; and Moonbug Entertainment, which produces children’s entertainment.
It’s unclear whether the pair will help Disney evaluate options for its other linear television properties, including ABC. Iger has expressed a willingness to part with the TV network he joined in 1974.
Both have a deep familiarity with Disney’s business. Staggs is the former chief operating officer, former chief financial officer and former head of the Disney theme parks. Mayer, as chief strategy officer, was a key architect of many of the company’s blockbuster deals.
Mayer oversaw the launch of the Disney+ streaming service as well as the creation of ESPN+. He left the company in May 2020, three months after Iger tapped Bob Chapek to succeed him as CEO.
After a 2½-year run, Chapek was forced out in November, leading to Iger’s return to run the company. Iger recently signed a new deal that will keep him at Disney through December 2026.
Iger had initially tapped Staggs in 2015 as his top lieutenant in line to succeed him, but Staggs left the company the following year after it became clear that Iger wasn’t ready to give up the reins anytime soon.
A day after extending his contract as Walt Disney Co.’s CEO, Iger said he is open to spinning off ABC Television and taking on a partner for ESPN.
Disney’s hiring of Staggs and Mayer was first reported by the online news site Puck.
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