WOKE DISNEY ATTACKED! Billionaire Wants LAYOFF, Invests $1 Billon to FORCE LAYOFFS and more!

Billionaire activist investor Dan Loeb unveiled a new "significant stake" by his hedge fund Third Point in Walt Disney, which he disclosed in a letter to CEO Bob Chapek, in which he urges the company to consider a spinoff of ESPN, cut costs and add new directors as part of a sweeping restructuring meant to boost shareholder value

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Dan Loeb Reveals New Disney Stake, Urges Cost-Cutting, "Board Refresh", ESPN Spinoff
https://www.zerohedge.com/markets/dan-loeb-reveals-new-disney-stake-urges-cost-cutting-board-refresh-espn-spinoff

Daniel Loeb
https://ballotpedia.org/Daniel_Loeb

Third Point Accumulates Position in The Walt Disney Company, Files for Hart-Scott-Rodino to Engage Directly with the Company
Third Point Seeks Constructive Engagement with Disney on Numerous Issues
Congratulations on a terrific quarter and positive momentum in Parks, ESPN, and media and entertainment. We were particularly pleased to see the strength in DTC subscriber growth, the key driver of Disney’s long-term transformation towards less volatile, ultimately higher margin cashflows with a greater return on invested capital. As we wrote to our investors at the time of our initial investment in 2020, which highlighted the extraordinary potential of Disney+, we liken this evolution of the Company from “analog” theatrical releases towards digital distribution to Microsoft’s transition from selling software in plastic wrap boxes to a SaaS model. We expect to see the quality of Disney’s financial results improve as the Company’s business shifts further.
We have had over two years to observe management navigate the most challenging time in Disney’s history, as you led the organization to simultaneously grow the DTC business, guide the Parks from pandemic closures to record-revenues and profits, and create quality entertainment content. This quarter’s results are an important proof point that Disney’s complex transformation is succeeding and our confidence in Disney’s current trajectory is such that we have, in recent weeks, repurchased a significant stake in the Company.
We have also filed Hart-Scott-Rodino approval with the Federal Trade Commission so that we can engage with management and the Board in order to work directly and constructively with all parties, since the Company will likely require additional strategic, capital allocation, and governance changes to ensure its success.
I realize some of our suggestions may already be in the works, but since we do not possess any material non-public information, we thought it might be useful to share our thinking on five important initiatives that we believe will unlock further value in the near-term.
1. Cost Cutting: Disney’s costs are among the highest in the industry, and we believe Disney significantly underearns relative to its potential. We urge the Company to embark on a cost cutting program that addresses both margins and the disposal of excess underperforming assets.

2. Dividend Policy: In a prior letter, we proposed that the Company continue the policy initiated under Covid when parks were closed to suspend payment of a cash dividend. We urge the Company to preserve this policy and use free cash flow to pay down debt, repurchase shares, or organically reinvest in the business.

3. Hulu: We believe that integrating Hulu directly into the Disney+ DTC platform will provide significant cost and revenue synergies, ultimately reigniting growth in the domestic market. We urge the Company to make every attempt to acquire Comcast’s remaining minority stake prior to the contractual deadline in early 2024. We believe that it would even be prudent for Disney to pay a modest premium to accelerate the integration but are cognizant that the seller may have an unreasonable price expectation at this time (while noting the seller has already made the decision to prematurely remove their own content from the platform.) We know this is a priority for you and hope there is a deal to be had before Comcast is contractually obligated to do so in about 18 months.

4. ESPN: ESPN is a great business that currently generates significant free cash flow, enabling the Company to pay down debt and increase strategic options down the line. In addition, we realize ESPN content is part of the bundle being offered to subscribers of other products, both in Disney’s Linear and DTC businesses. Despite these advantages, we believe that a strong case can be made that the ESPN business should be spun off to shareholders with an appropriate debt load that will alleviate leverage at the parent Company.