Report: Disney Could Possibly Spin-off ESPN

John Malone

Disney is being held back from its full potential by ESPN and may consider spinning off the sports broadcast network, Liberty Media Chairman John Malone told CNBC on Thursday.

"If I had to guess, what you will see is a split of Disney with ESPN spun off and, probably, ESPN could be owned and protected by a distributor in the U.S.," Malone said.

ESPN has become something of a hindrance to Disney, Malone said, as the sports network has grown more costly over the years.

Malone speculated that Apple might become interested in taking over Disney if the latter were to separate itself from ESPN.

"Fundamentally, Tim Cook is a global player, and fundamentally, ESPN is a domestic service," Malone said, adding that Apple would have a lot more in common with a Disney without ESPN in terms of both brands' global reach.

Malone admitted that his views are more speculative than predictive. "When these tectonic plates start moving, it's just fun to speculate, because we're just the little guys now," he said.