Part 3/11:
The failure was pegged to fears of financial depletion. A deal that led to only ABC and ESPN returning at cut-rate levels—or worse, terminating altogether—could have severely impacted Disney’s revenue and user engagement ahead of their earnings report. With Disney’s market value now dipping, the stakes for a quick resolution have only intensified.
Financial Stakes and Corporate Resolve
Disney’s CFO, Hugh Johnston, publicly declared that the company is prepared for a long fight. Speaking on CNBC, Johnston stated, “We’re in the middle of a negotiation right now, and we're ready to go as long as they want to.” This robust stance indicates Disney's determination to hold out despite the potential for losing over $100 million if the channels remain blacked out.