Disney clapped back at activist investor Dan Loeb’s suggestion the Mouse House spin off cable sports channel ESPN and criticism over its board of directors. reports The NY Post.
Loeb, whose firm Third Point re-upped its stake Monday, made a string of suggestions — including spinning off ESPN, sharing buybacks, buying its remaining stake in Hulu and naming new board members — to improve the company’s fortunes.
“We welcome the views of all our investors,” replied a Disney spokesman. “As our third quarter results demonstrate, The Walt Disney Company continues to deliver strong financial results powered by world-class storytelling and our unique and highly valuable content creation and distribution ecosystem.”
In his letter, Loeb took aim at Disney’s financials and its board, saying there are “gaps in talent and experience as a group that must be addressed” and added that Third Point has identified potential directors.
Disney slammed Loeb, first addressing its balance sheet, then its board.
“Under the leadership of Bob Chapek, the company has delivered this strong performance while navigating the COVID-19 pandemic and its aftermath, including record streaming subscriptions and the reopening of our parks, where we have seen strong revenue and profit growth in our domestic parks business,” the spokesman said.
The rep added that Disney’s board has “significant expertise in branded, consumer-facing and technology businesses as well as talent-driven enterprises,” and that board members are cycled out on average every four years.
The response came hours after Loeb said he thinks ESPN should be spun off to shareholders. He urged Disney to hire bankers and lawyers to “reassess the desirability of the transaction in the current environment” after Disney had already considered it.
No comments:
Post a Comment