ESPN is a leading sports entertainment brand known for local, global, cable, satellite, and streaming services. These include the cable sports channel ESPN, pay television network ESPN2, sports website ESPN.com, over-the-top (OTT) subscription video streaming service ESPN+, and sports radio network ESPN Radio.
ESPN was originally founded in 1979 by Bill Rasmussen. The intent behind the company was to broadcast Connecticut sports through a cable channel. The channel was called Entertainment and Sports Programming Network, or ESPN for short.
Rasmussen and his son, Scott, struck a deal with the National Collegiate Athletic Association (NCAA) to grant ESPN broadcast rights for its sports. By late summer 1979, the first ESPN cable channel was live, with 24 hours of programming on the weekends and specific hours of airtime during the weekdays.
By the 1980s, ESPN was the largest cable channel. In the years that followed, ESPN expanded both domestically and abroad, launching networks like ESPN Latin America and ESPN Asia. Tobacco company RJR Nabisco purchased a 20% stake in ESPN, but it sold its stake to Hearst Corporation (later Hearst Communications) in 1990.
ABC purchased a controlling stake in ESPN in the 1980s; after its 1995 merger with Capital Cities Communications, the new company was bought out by Walt Disney (DIS +2.20%).
While rumors have swirled around ESPN, it does not appear as though this company will hold an initial public offering (IPO) anytime soon. However, if you're interested in investing in adjacent businesses, you have several options to consider.
IPO
Is ESPN publicly traded?
If you're looking to buy ESPN stock, you should know that the company is not publicly traded, and there is no IPO planned at this time. However, the company is owned by Walt Disney, which is a public company. Walt Disney owns ESPN through its subsidiary, American Broadcasting Company (ABC). The mass media giant controls an 80% stake in ESPN.
The remainder of ESPN is controlled by private multinational mass media and business information conglomerate Hearst Communications. As of 2025, Hearst Communications retained a stake of 20%.
When will ESPN IPO?
ESPN is 80% owned by The Walt Disney Company through its subsidiary ABC and 20% by Hearst Communications. ESPN is not a publicly traded company, so there is no ESPN stock to buy. However, you can invest in the Walt Disney Company, which owns 80% of ESPN.
How to buy ESPN stock
You can't currently buy shares of ESPN stock because it isn't publicly traded. However, there are other ways to invest in this business indirectly, as well as other stocks in the entertainment, media, and streaming spaces. Here are a few alternatives.
The Walt Disney Company
The Walt Disney Company controls an 80% stake in ESPN. This is just one aspect of a broader portfolio of entertainment properties, including assets like Hulu and Disney+, as well as its studios like Walt Disney Pictures, Marvel Studios, and Lucasfilm. Its other division, Disney Experiences, is known for its parks and experiences, which include cruises, resorts, and vacation clubs.
Warner Bros. Discovery
Warner Bros. Discovery (WBD -0.54%) is another media giant; it was formed by the merger of AT&T (T -0.88%) and Discovery in 2022. In addition to TNT Sports, its lineup of entertainment assets includes HBO, Max, Discovery+, DC Comics, and Food Network. The company has dealt with slowdowns in the top and bottom lines in recent years, including fluctuating profitability, although its direct-to-consumer segment has helped bolster revenues.
Netflix
Netflix (NFLX +1.43%) has been generating steady revenue growth and profitability after a tough transition following its surge of growth during the COVID-19 pandemic. Netflix's launch of a cheaper, ad-supported tier was slow to be adopted but has been widely hailed as a success. It is helping drive growth forward along with the expansion of its content offerings.
If you want to buy shares of Disney or another company in the streaming space, there are some important steps to follow.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Is ESPN profitable?
ESPN has historically been a profitable segment for Disney. The segment has been a significant growth driver for Disney since its acquisition in the 1990s, including providing capital to help fund additional acquisitions. ESPN reported total operating income of $911 million in the last quarter of Disney's fiscal 2025 but also reported a 3% decline in operating income across the sports segment.
Should I invest in ESPN?
ESPN has historically proven to be one of Disney's more profitable areas, but recent financial reports show that growth has slowed. Changes in consumer viewing patterns, subscriptions, and overall weaknesses in the ad market are afflicting a range of entertainment-centric stocks, and Disney may be no different. Disney plans to launch a standalone ESPN streaming service, initially called "Flagship," which will include all of ESPN's linear channels and ESPN+.
This service will be available as a standalone product, allowing consumers to subscribe directly without being tied to a cable bundle. Flagship will also offer features like betting, fantasy sports, and personalization to attract younger audiences. Disney aims to make ESPN accessible in multiple ways, including linear channels, Disney+ bundles, and the standalone Flagship app.
This approach allows consumers to choose their preferred method of viewing ESPN, whether it's through a traditional cable subscription, a streaming bundle, or a standalone service. Disney also plans to offer ESPN+ as part of its bundled subscription packages with Disney+ and Hulu. This bundling strategy aims to attract sports fans to become subscribers to Disney's streaming services.
Disney is exploring partnerships with sports leagues, technology companies, and mobile platforms to further expand ESPN's reach and distribution. These partnerships could involve equity stakes, distribution agreements, and co-branded products.
ESPN recorded total revenue of $10 billion in the company's total fiscal 2025 report. ESPN also generated an 8% increase in domestic ad sales revenue, primarily from an increase in ad rates.
It's worth noting that if you invest in Disney, you're getting much more than a slice of the action at ESPN. With a company whose assets span classic Disney films to the Star Wars franchise to Marvel -- not to mention its resorts and parks -- there's plenty to like about ESPN's parent company and its storied history of succeeding through economic thick and thin.
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The bottom line on ESPN
Although investing in ESPN stock isn't an option, you can invest in Walt Disney and gain exposure to this business along with the other household name brands that its parent company controls. Disney is making strides to improve its profitability and revenue growth and has a market-leading lineup of assets that can help it achieve those end goals. Over the long run, Disney can still deliver shareholder value to long-term investors.
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