Citing sports betting, activist investor calls on Disney to spin off ESPN

Citing sports betting, activist investor calls on Disney to spin off ESPN

Article brief provided by Front Office Sports
  • Owen Poindexter, Front Office Sports
August 15, 2022 10:42 PM
  • Owen Poindexter, Front Office Sports

    An activist investor is calling on Disney to let one of the biggest names in sports media chart its own course.

    Daniel Loeb’s Third Point has upped its stake in The Mouse – and penned a letter to CEO Bob Chapek calling on him to spin off ESPN.

    “ESPN would have greater flexibility to pursue business initiatives that may be more difficult as part of Disney, such as sports betting,” Loeb wrote, adding that “most arrangements between the two companies can be replicated contractually.”

    Disney has reportedly explored spinning off ESPN, so the latter could pursue sports betting without conflicting with Disney’s family-friendly brand.