Third Point, an investment firm run by Daniel Loeb, has taken a new stake in The Walt Disney Co. and is urging the company’s CEO to make a wave of changes, including spinning off ESPN and combining Hulu and the Disney+ streaming service. In a letter to Disney CEO Bob Chapek, Loeb, whose stake in Disney is reportedly worth about $1 billion, also wants The Mouse to expand its board of directors. Spinning off sports TV giant ESPN would give the unit “greater flexibility” and enable it “to pursue business initiatives that may be more difficult as part of Disney, such as sports betting,” Loeb said.
Third Point, a $13 billion hedge fund founded by billionaire investor Daniel Loeb with a reputation as an activist investor, has proposed thatCorp. spin off its entertainment division via an IPO, saying the move could boost the Japanese electronics firm’s shares by as much as 60%. Third Point said it would put up $1.5-$2 billion to support a public offering for Sony Entertainment.