Shares of The Walt Disney Company (DIS) were up 2.2% after activist investor Dan Loeb said his investment firm, Third Point, has taken a “significant stake” in the entertainment giant in recent weeks, and he called for changes in the company.
Loeb sent a letter to CEO Bob Chapek announcing the stake, and suggested Disney spin off ESPN to shareholders, arguing that both operations would be better off with a split.
In addition, Loeb explained he wanted a shakeup of the board, noting “we believe there are gaps in talent and experience as a group that must be addressed.”
Hulu to Disney+
He also recommended the company cut costs, continue suspension of cash dividends instituted when theme parks were closed because of the pandemic, and buy Comcast’s (CMCSA) minority stake in Hulu and integrate it into the Disney+ streaming service.
The news helped add to recent gains of Disney shares following the company’s strong quarterly earnings report last week. The stock has now traded higher for four consecutive sessions and at its highest level since April.