Disney and YouTube TV reached a deal late last week after a lengthy blackout. The two sides were divided on how much Disney's networks like ESPN are worth.
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The Walt Disney Company NYSE: DIS stock is down nearly 8% in early trading after a mixed earnings report, reflecting a company that is making progress but facing key structural challenges. Strong performance in its theme park business couldn't fully offset the misses in its linear TV business, especially in light of its ongoing carriage dispute with YouTube TV—a standoff that affects the future of live sports streaming.
Shares of Walt Disney Company ( NYSE: DIS ) lost 2.64% over the past month after falling 3.27% the month prior.
After a two-week blackout, YouTube TV and Disney announced Friday that they have reached a deal.
An agreement to bring Disney programming back to YouTube TV subscribers after a two-week blackout shows how the center of gravity has shifted from linear television to streaming.
YouTube TV subscribers no longer need another streaming service -- or to visit a sports bar -- to watch the NFL or college football.
ESPN, ABC and other Disney networks return to roughly ten million YouTube TV customers.
Disney and YouTube TV agreed to terms on a carriage deal that ends a long blackout. The two sides had been at odds over the value of Disney's channels, including ESPN.
Walt Disney (DIS) stock has declined 7.7% in just one day. The recent downturn comes after the media behemoth posted mixed Q4 FY'25 earnings, with larger-than-expected declines in its linear TV business - which remains key to overall revenues and profits, despite the surge in the streaming business.
Disney reported $22.46 billion in revenue for the quarter, which just missed analyst expectations and resulted in a 5% drop in premarket trading on Thursday.