Disney investor changes tune on ESPN in turnaround decision

Disney investor changes tune on ESPN in turnaround decision

Activist investor Daniel Loeb and Third Point CEO has eased off on calls for Walt Disney to spin off sports network ESPN.

Third Point bought a new stake and Loeb wanted to see five changes at Disney, which would unlock further value in the near-term.

One of the changes was for Disney to ditch ESPN.

However, Loeb has dropped that plan. He is now fine with Disney keeping ESPN.

"We have a better understanding of ESPN’s potential as another vertical for Disney to reach a global audience," he said on Twitter.

ESPN president James Pitaro is to execute the growth and innovation plans as part of The Walt Disney company.