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https://www.barrons.com/articles/disney-espn-spinoff-51660679471

Walt Disney stock’s post-earnings run continued this week after Dan Loeb’s Third Point sent a letter to CEO Bob Chapek revealing another large stake and outlining suggestions for the entertainment giant. While an analyst at Citi Research sees merit in most of Loeb’s suggestions, he’s doesn’t think ESPN should be spun off.

In his letter to Chapek, Loeb reiterated his view that Disney should keep its dividend suspended so it can put free cash flow toward reinvestments in the business, paying down debt, or repurchasing shares. He also suggested cutting costs, integrating Hulu directly into the Disney+ direct-to-consumer platform, and shuffling up the company’s board. He made the case for exploring a spinoff of ESPN because it could work out for both firms, and the companies can keep most of its current arrangements going through contractual agreements.

Walt Disney stock’s post-earnings run continued this week after Dan Loeb’s Third Point sent a letter to CEO Bob Chapek revealing another large stake and outlining suggestions for the entertainment giant.

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