Disney is pressured to sell ESPN ... again

Disney is once again faced with a decision on ESPN's future following pressure from an activist investor.

Why it matters: ESPN has been a reliable cash cow for decades, but questions remain about its financial value going forward as TV subscriber numbers keep shrinking.

Driving the news: A new push to spin off ESPN came Monday when activist hedge fund manager Dan Loeb revealed a new stake in Disney. Separating the sports networks is one of his top demands.

• Disney has reportedly eyed an ESPN spinoff, but ultimately hedged against selling the asset, as it has proven critical not only to its cable revenues but its bundled streaming product.
• Loeb, however, argues the company could reap much more value from the asset if it is separated and combined with a sports betting company.

Catch up quick: Disney shunned gambling under former CEO Bob Iger. His successor has been much more willing to wager on the betting space.

• Last year, ESPN was seeking at least $3 billion to license its brand name to sportsbooks including Caesars Entertainment and DraftKings.
• Disney CEO Bob Chapek admitted that ESPN needs to "seriously consider getting into gambling in a bigger way" and even alluded to some kind of deal coming soon during last week's earnings call.

Yes, but: Disney is wary of intertwining its family brand too much with gambling.

• "ESPN would have greater flexibility to pursue business initiatives that may be more difficult as part of Disney, such as sports betting," Loeb wrote in his letter.

What's next: Merging with a sports betting company could soften the blow of cord-cutting and set ESPN up to capitalize on one of the few growth markets in the media space.

• Loeb is the latest activist investor trying to pressure media companies to focus their business efforts on consumer revenue streams.