Bob Chapek Dan Loeb Daniel Loeb Brian Steinberg-Senior performer ESPN sports Bob Chapek Dan Loeb Daniel Loeb Brian Steinberg-Senior

Dan Loeb’s Third Point Calls for Disney to Divest ESPN, Take Control of Hulu

Reading now: 861
variety.com

Brian Steinberg Senior TV EditorWall Street recently cheered Disney’s fiscal performance, judging by how the stock has performed since the company offered details of its second quarter performance.

And yet, there are some investors who still think the owner of ABC, Disney World and Hulu has much further to go.In an Aug. 15 letter to Disney CEO Bob Chapek, activist investor Third Point LLC suggested that Disney consider spinning off sports-media juggernaut ESPN, buying out Comcast’s stake in Hulu and reconfiguring its board of directors.“We expect to see the quality of Disney’s financial results improve as the Company’s business shifts further” into the direct-to-consumer arena, Third Point CEO Daniel Loeb said in the note to the Disney chief, while noting that “our confidence in Disney’s current trajectory is such that we have, in recent weeks, repurchased a significant stake in the Company.” Loeb suggested that Disney “embark on a cost cutting program that addresses both margins and the disposal of excess underperforming assets” and not restore its dividend, which it stopped paying out to deal with conditions imposed by the global coronavirus pandemic.

Loeb also recommended that Disney consider buying up Comcast’s minority stake in Hulu ahead of the 2024 contractual deadline when Disney must do so.

And he suggested that Disney spin off ESPN while maintaining contractual links to the sports outlet, in such a way that ESPN will be able to delve more deeply into sports betting.

Read more on variety.com
The website starsalert.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA