KEY POINTS
  • Activist investor Dan Loeb has written a letter to Disney CEO Bob Chapek to end his company's annual $3 billion dividend.
  • Loeb's argument is centered on investment in streaming driving more value for Disney shareholders than a dividend.
  • Activists frequently argue companies should give more money away to shareholders rather than less, making Loeb's letter unusual. 

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Activist investor Dan Loeb is asking Disney Chief Executive Officer Bob Chapek to end the company's annual $3 billion dividend to divert more capital to new Disney+ content.

Loeb sent his proposal to Chapek on Wednesday in a letter, which CNBC has seen. Loeb's Third Point Capital is one of Disney's largest shareholders and bought more shares earlier this year in support of Disney's repositioning around Disney+, its flagship subscription streaming service.

In this article