Billionaire investor Daniel Loeb withdrew his call for Walt Disney Co. to split up the sports TV network as a result of a “greater understanding” of ESPN’s future potential, This comes after Disney CEO Bob Chapek turned down Dan Loeb’s proposal to split out ESPN, according to a Financial Times article on Saturday. The investor expressed interest in seeing ESPN Chairman James Pitaro carry out the development and innovation ambitions, “creating tremendous synergies as part of” Disney, in a tweet on Sunday.
The owner of Third Point, Loeb, disclosed a $1 billion interest in Disney in August and made intentions to pressure the corporation to implement a number of changes, including spinning off ESPN, repurchasing shares, and expanding the board. In response to allegations that Disney was considering selling the cable network, Chapek told the FT that the corporation had been “deluged” by inquiry from businesses looking to purchase ESPN early this year.
The FT reported Chapek as adding, “If everyone wants to come in and purchase it or spin it with us, I think that tells something about its potential.” Chapek defended the board, stating it had a broad “variety of skillsets” and that the average tenure was four years, in response to Loeb’s intention to pressure Disney to appoint new board members.
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