The Walt Disney Company has reacted to the activist investor and CEO of Third Point Management Dan Loeb’s letter requesting that the Mouse House implement several significant reforms to reduce expenses and produce free cash flow. Loeb declared a “substantial position” in the entertainment behemoth and requested that it consider five projects in a letter to Disney CEO Bob Chapek on Monday.
In the letter, he added that Margin management and “the disposal of surplus underperforming assets” are two components of a cost-cutting program. He also spoke about maintaining a dividend suspension during the COVID-19 theme park shutdown and using free cash flow to pay off debt, buy back shares, or make organic reinvestments in the company. Purchasing Hulu’s 33% minority interest from Comcast before the streaming service’s contractual date of early 2024 and incorporating it into.
The board has also benefitted from ongoing renewal, with an average term of four years. Loeb previously bought a stake in Disney in October 2020. At the time, he urged the business to stop paying its $3 billion yearly dividend and use the money instead to create content and make purchases for. With adjusted profits per share of $1.09, up 36% from the same quarter a year ago, on revenue of $21.5 billion, up 26% from the same time, surpassed Wall Street projections for its fiscal third quarter on Monday.