Disney Should Drop Dividend and Double Streaming Content Budget, Activist Investor Dan Loeb Says

Disney+ has overperformed since launching, while other parts of its business remain battered by the pandemic

Disney investor Dan Loeb is pleading with the company to go all-in on streaming, arguing the company should “permanently suspend” its $3 billion annual dividend and redirect that money towards Disney+’s original content budget.

“By reallocating a dividend of a few dollars per share, Disney could more than double its Disney+ original content budget,” said Loeb, the founder of hedge fund Third Point, which owns around 5.5 million shares of the company as of June 30, in a letter to Disney CEO Bob Chapek.

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Tim Baysinger

TV reporter • tim.baysinger@thewrap.com • Twitter: @tim_bays