As you are aware, we have already taken measures to reverse changes made by the previous CEO. We plan to cut operating costs by $2.5b. We plan to cut $3b from content spending. Together, thats equivalent to 8% of expenses. We also plan to cut 7,000 jobs. We are raising Disney+ subscription prices by 38% (U.S. only). We plan to restart paying out dividends by the end of 2023. However, the new CEO is concerned these measures alone are insufficient. He has requested that our team prepare a set of strategic recommendations prior to our Global Business Strategy meeting on March 6th. He would like us to address two major concerns:

1. Long-term plan for streaming. The CEO said he wants to focus on core brands and franchises and avoid undifferentiated general entertainment. He also said we will sit out the global arms race for subscribers. Our arrangement with Comcast for Hulu is set to expire in 2024. As you know, Comcast owns a one-third stake in Hulu and we own the remaining two-thirds. While Hulu has been doing well, its growth is slowing and its margins are decreasing. We need to consider our options. Comcasts CEO indicated that hes open to buying our stake if it was up for sale. The question is: do we let go of Hulus shows, which do better than those of Disney+ with older viewers and women, or do we pay roughly $9b for Comcasts stake?

2. Long-term plan for ESPN. It seems we always struggle to fit ESPN within our long-standing business strategy of monetizing franchises across multiple distribution channels. While we have no intention of spinning off ESPN, that may change if we decide to make another big acquisition (e.g., Hulu) or if we decide to enter the video game market. We have roughly $40bn of net debt, so the proceeds from the potential sale of ESPN may be critical.

As you consider these questions and develop key strategy initiatives, please address the competitive landscape, our assets and competencies, and our value propositions. Also, be sure to mention what financial metrics well use to track progress. (not more than 500 words)