Core Viewpoint - Disney's ESPN and Penn Entertainment are ending their sports betting partnership early, which will result in the rebranding of ESPN Bet to theScore Bet, concluding the collaboration after just over two years instead of the planned ten years [1][2][3]. Group 1: Partnership Details - The partnership, initiated in 2023, allowed ESPN to rebrand Penn's sportsbook from Barstool Sportsbook to ESPN Bet, with an original term of ten years [1][2]. - The agreement included a clause allowing either party to terminate the partnership after three years if specific market share performance thresholds were not met [3]. - Penn's CEO Jay Snowden noted that both companies had made significant progress but mutually agreed to wind down the collaboration [3]. Group 2: Financial Implications - Under the original agreement, Penn was to pay ESPN $1.5 billion in cash over ten years and provide ESPN with approximately $500 million in warrants to purchase about 31.8 million shares of Penn common stock [5]. - The annual cash payments of $150 million from Penn to ESPN will cease in the fourth quarter, along with the warrants for common stock [6]. Group 3: Future Directions - ESPN is now looking for other media and marketing opportunities in the sports betting space following the termination of the partnership [4]. - The ESPN Bet brand is expected to be phased out by December 1 [5].