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WALT DISNEY COMPANY (THE)

(DIS)
  Report
Delayed Nyse  -  04:03 2022-09-29 pm EDT
97.45 USD   -1.96%
02:59pWalt Disney World Resort Will Resume Theme Park And Disney Springs Operations In Phased Approach Starting Sept. 30 - Disney Parks Tweet
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02:59pWalt disney world resort will resume theme park and disney sprin…
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02:53pWalt Disney names Alisa Bowen president of Disney+
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Dan Loeb's Third Point Buys Back into Disney Stock

08/15/2022 | 09:13am EDT

By Dean Seal


Dan Loeb said Monday that his hedge fund Third Point LLC, which liquidated a large stake in Walt Disney Co. this year, has repurchased a "significant stake" in the company.

The activist investor disclosed the investment in a letter to Chief Executive Bob Chapek praising growth in Disney's streaming subscriber base and urging the company to engage with Third Point on a number of governance issues.

Third Point is pushing Disney to "make every attempt" to buy up Comcast Corp.'s remaining minority stake in the streaming giant Hulu before its contractual deadline in early 2024.

"We believe that it would even be prudent for Disney to pay a modest premium to accelerate the integration but are cognizant that the seller may have an unreasonable price expectation at this time," Loeb's letter said.

The letter also states that there is a "strong case to be made" that Disney should spin off its ESPN business to shareholders in order to alleviate leverage at the parent company, despite ESPN's centrality to the company's streaming offerings and the significant free cash flow it generates.

Loeb's letter also urges the company to institute a cost-cutting program and continue its pandemic-era suspension of cash dividend payments.

Third Point previously held 4.1 million shares of Disney and successfully pushed the company to suspend its $3 billion annual dividend and plow the funds instead into the streaming business.

But by the first quarter of this year, the hedge fund had completely exited its position. Mr. Loeb had become worried that it would take years for Disney's streaming business to reap the profits needed to boost the company's share price, a person familiar with his thinking told The Wall Street Journal in May.

Disney shares gained 1.9% to $123.76 in early trading Monday.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

08-15-22 1113ET

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WALT DISNEY COMPANY (THE) -1.96% 97.45 Delayed Quote.-38.12%
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Analyst Recommendations on WALT DISNEY COMPANY (THE)
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Financials (USD)
Sales 2022 84 540 M - -
Net income 2022 3 876 M - -
Net Debt 2022 38 563 M - -
P/E ratio 2022 45,5x
Yield 2022 -
Capitalization 178 B 178 B -
EV / Sales 2022 2,56x
EV / Sales 2023 2,24x
Nbr of Employees 166 250
Free-Float 98,8%
Chart WALT DISNEY COMPANY (THE)
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Technical analysis trends WALT DISNEY COMPANY (THE)
Short TermMid-TermLong Term
TrendsBearishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 29
Last Close Price 97,45 $
Average target price 142,74 $
Spread / Average Target 46,5%
EPS Revisions
Managers and Directors
Robert A. Chapek Chief Executive Officer & Director
Jason Hable Vice President
Christine M. McCarthy Chief Financial Officer & Senior Executive VP
Susan E. Arnold Chairman
Diane Jurgens Chief Information Officer
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