In a letter addressed to Disney chief executive Bob Chapek in mid-August, activist hedge fund manager Dan Loeb said a “strong case can be made” for the ESPN sports network to be spun off from the company.
Loeb, known for waging bruising battles against the likes of Sony and Sotheby’s, outlined his argument along with a host of other recommendations to improve performance at Disney, including a board “refresh”, taking full control of the Hulu streaming network and cost-cutting measures.
Less than a month later, however, the aggressive manager of hedge fund Third Point reversed his position on spinning off Disney’s sports network after Chapek told the Financial Times that he had a plan to “restore ESPN to its growth trajectory”. In a tweet, Loeb said he had come to a “better understanding of ESPN’s potential as a standalone business”.