Walt Disney Company DIS wants to keep sports TV network ESPN despite activist calls to spin off or sell unit, CEO Bob Chapek reportedly said in an interview with the Financial Times on the sidelines of the annual D23 conference in California.
Disney has received a barrage of offers from companies looking to buy ESPN ever since rumors of a possible sale of the cable network began to circulate, Chapek said.
“If everyone wants to come in and buy it … I think that says something about its potential,” he noted. Its potential lies in Disney, Chapek added.
Disney’s CEO noted that the company has a plan to get ESPN back on its growth path.
See also: Disney is trying to pull off an Amazon with “Prime-Like” bundle service: WSJ
Hedge funds Third point announced a $1 billion stake in Disney in August, and its CEO Dan Loeb has called for a spin-off from ESPN to reduce the mouse empire’s debt as part of a plan to restructure the company.
Chapek said he regularly had “very cooperative, non-antagonistic, and collegial” conversations with Loeb, the report said. Responding to the hedge fund manager’s request to change the composition of the board, Chapek reportedly said that the members have a wide range of skills and their tenure is four years.
Regarding Loeb’s buyout call Comcast Corporation CMCSA 33% stake in Hulu before January 2024, when Disney has an option to buy out the streaming service, Chapek signaled that Comcast has been reluctant, although Disney “would love to do that.”
Disney closed Friday’s session up 2.54% at $115.18, according to the release Benzinga Pro data.
Photo: Courtesy of Walt Disney Television on flickr
