Loeb’s Third Point first disclosed its position in Disney in October, and called on the company at the time to suspend its dividend and redirect those funds toward more aggressively creating content for its direct-to-consumer streaming service, Disney+.
On Friday, he urged Disney to provide an all-you-can-eat approach to its direct-to-consumer offering. That means offering its various content on a single platform under the Disney+ brand, “where all theatrical content is available day-and-date with no additional fee to subscribers.”
Over the past year, he said he has left his meetings with Disney CEO Bob Chapek and Chief Financial Officer Christine McCarthy impressed by their relentless pursuit of long-term shareholder value. But he said there remains an “immense” opportunity for the company to tap into with a billion global broadband-enabled homes, 4 billion mobile smartphone subscribers, and at least a billion global Disney fans.
“Establishing a durable leadership position in the competitive global streaming market will require tough choices, aggressive investment, unwavering focus and consistent innovation,” he said.
In his letter, Loeb also discussed his recent foray into cryptocurrency, and Third Point’s relatively new position in RH, the upscale home-furnishing company that used to be called Restoration Hardware.