Walt Disney Co (NYSE:DIS) shares are trading flat Wednesday following a landmark media deal announcement to launch a joint sports streaming service this fall.
What To Know: Disney subsidiary ESPN, Warner Bros Discovery and Fox reached an understanding on principal terms to form a new joint venture to build an innovative platform for sports streaming.
The new platform will be made available directly to consumers through a new app. The name and price of the new streaming service will not be released until definitive agreements are reached among the companies involved.
Subscribers will gain access to ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS and truTV, as well as ESPN+. Subscribers will also have the option to bundle the product with Disney+, Hulu and Max.
“The launch of this new streaming sports service is a significant moment for Disney and ESPN, a major win for sports fans, and an important step forward for the media business,” said Bob Iger, CEO of Disney.
Disney shares also appear to be experiencing increased volatility Wednesday ahead of the company’s quarterly results. Disney is set to report its fiscal first-quarter financial results after the market close. The company is expected to report earnings of 99 cents per share on quarterly revenue of $23.643 billion, according to Benzinga Pro.
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DIS Price Action: Disney shares were down 0.31% at $98.98 at the time of writing, per Benzinga Pro.
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