Activist investor Dan Loeb backs down from asking Disney to sell ESPN

Billionaire activist investor Daniel Loeb has backed away from pushing Walt Disney Co to spin off ESPN, saying he "better understands" the sports television network's growth potential.

The development comes after Disney Chief Executive Bob Chapek reaffirmed ESPN's value to the media company. "We believe ESPN is a well-positioned asset within The Walt Disney Company (NYSE:DIS)," Chapek told Reuters. Investor on Sunday https://twitter.com/DanielSLoeb1/status/1568958464164069376?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1568958464164069376%7Ctwgr%5E90ee1840a55a8505371308e1e7166f82e0649fb5%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2022-09-11%2Floeb-backs-down-on-call-for-espn-spinoff-after-disney-rejection said in a tweet that he looks forward to ESPN Chairman James Pitaro executing on his plans for growth and innovation and "creating significant synergies as part of Disney." Loeb, who runs Third Point, disclosed in August that he had a stake of about $1 billion in Disney and announced plans to force the company to make a series of changes, from spinning off ESPN to buying back shares and adding board members. Chapek confirmed reports earlier this year that Disney had received numerous inquiries from companies interested in acquiring ESPN. The company has spent the past year making plans to reignite growth at ESPN and position it for the future as part of Disney's streaming service suite. "It's been a great cash flow generator for us, which helps us pay the bills as we ramp up broadcasting," Chapek said. "Today is very, very positive and the most important thing was always to look to the future, right?" On Loeb's plan to force Disney to add new board members, Chapek defended the board, saying it has a broad "range of skills" and the average tenure is four years. Third Point, which owns about 0.4% of Disney, has also suggested that Disney accelerate its timetable to buy the remaining stake in streaming service Hulu from minority shareholder Comcast Corp (NASDAQ:CMCSA) ahead of its planned 2024 acquisition. Chapek told Reuters that he had spoken to Comcast about accelerating the acquisition timetable. "I think it would make sense for them because it's inevitable," he said. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!