Activist Investor Dan Loeb Urges Disney To End Dividend To Fund Streaming Content

Loeb added Disney to Third Point’s portfolio some months ago when its shares were beaten down by worries over how theme parks and movie theaters would survive the global coronavirus pandemic.

Disney said in August it had attracted more than 100 million streaming customers worldwide in just the first nine months of its digital video push. Netflix boasts 193 million, but it got a head start in the streaming market 13 years ago.

While Loeb wrote that he did not want to intrude on Disney’s basic business decisions, he left little doubt that he wanted the company to move more quickly to capture streaming subscribers.

Even though a more aggressive investment strategy may weigh on short-term earnings, Loeb argued that with time, investors would see a benefit.