Disney has doubled down on its business model after an activist investor urged the company to majorly change its operations.
Third Point revealed on Monday that it had a $1 billion stake in Disney, meaning it owes a small amount of money.
Third Point's CEO and chief investment officer wrote a letter to Disney's CEO on Monday in which he encouraged him to make changes at the company.
There were suggestions to start a cost cutting program, suspend shareholder dividends, and integrate Hulu into the Disney+ platform.
Disney's costs are among the highest in the industry, and we think it underearns.
He called on Disney to refresh the board and spin off the sports channel from it.
There are gaps in talent and experience that need to be addressed according to the letter.
Disney said in a statement published by Deadline that it welcomes the views of all its investors.
Disney's representatives said, "As our third quarter results demonstrate, The Walt Disney Company continues to deliver strong financial results powered by world-class storytellers and our unique and highly valuable content creation and distribution ecosystems."
While navigating the Covid-19 pandemic and its aftermath, including record streaming subscriptions and the reopening of our parks, the company has delivered this strong performance.
The board members of the media giant are independent and experienced with significant expertise in branded, consumer-facing and technology businesses.
Disney's board of directors had an average tenure of four years.
Disney said last week that its third quarter revenues had grown by 26% from a year ago.
Theme park performance, increases in live sports viewers and significant growth in subscriptions to Disney's streaming services were attributed to the company's success.
When it came to subscriber numbers, Disney's streaming service, Disney+, was ahead of the competition.
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