Why a Disney Spinoff of ESPN Would Be a Whiff | Analysis

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Despite the urging of activist investor Daniel Loeb, analysts tell TheWrap they’re not sold on the idea

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The Walt Disney Company’s share price has risen more than 3% since Monday’s news that activist investor Daniel Loeb’s Third Point has acquired a new stake in the company, though analysts and experts have questioned Loeb’s push to spin off ESPN into a standalone company.

In a letter to Disney CEO Bob Chapek, Loeb argued that the sports property “would have greater flexibility to pursue business initiatives that may be more difficult as part of Disney.” But due to a range of financial and streaming factors tied to Disney’s future, many analysts argue that ESPN may be most valuable right where it is.