Activist investor Dan Loeb calls on Disney to halt its $3 billion annual dividend and instead spend that money on content for Disney+ and its other streaming services
The Third Point founder sent a letter to Disney's board Wednesday arguing that the move would help Disney capture a"transformational opportunity."
"By reallocating a dividend of a few dollars per share, Disney could more than double its Disney+ original content budget," Loeb writes in the letter, which was obtained by."Beyond bringing additional subscribers onto the platform, increased velocity of dedicated content production will deliver several knock-on benefits spread across your existing base including elevated engagement, lower churn, and increased pricing power.
In fact, Loeb argues that"with Disney’s superior tentpole franchises and production capabilities, we believe that the company can exceed the subscriber base of the industry leader, Netflix, in just a few years."
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