Activist Loeb Takes New Stake in Disney, Urges ESPN Spinoff (4)

Activist investor Dan Loeb acquired a stake in Walt Disney Co. and called for sweeping changes at the world’s largest entertainment company, including a spinoff of the ESPN sports network and new board members.

The suggestions were made in a letter Monday to Disney Chief Executive Officer Bob Chapek. Loeb said his Third Point investment firm has taken a “significant stake” in the company in recent weeks. The investorowned Disney shares previously but sold earlier this year, according to Bloomberg data.

“ESPN is a great business that currently generates significant free cash flow,” Loeb said in the letter. ...