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  "documentTitle": "The Walt Disney Company (DIS)",
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  "authorName": "Daniel S. Loeb",
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  "presentationDate": "2022-08-15 00:00:00",
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  "notes": "This is page 2 of a shareholder letter, continuing a list of demands.",
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      "text": "We urge the Company to embark on a cost cutting program that addresses both margins and the disposal of excess underperforming assets.",
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      "text": "4. ESPN: ESPN is a great business that currently generates significant free cash flow, enabling the Company to pay down debt and increase strategic options down the line. In addition, we realize ESPN content is part of the bundle being offered to subscribers of other products, both in Disney’s Linear and DTC businesses. Despite these advantages,",
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      "text": "3. Hulu: We believe that integrating Hulu directly into the Disney+ DTC platform will provide significant cost and revenue synergies, ultimately reigniting growth in the domestic market. We urge the Company to make every attempt to acquire Comcast’s remaining minority stake prior to the contractual deadline in early 2024. We believe that it would even be prudent for Disney to pay a modest premium to accelerate the integration but are cognizant that the seller may have an unreasonable price expectation at this time (while noting the seller has already made the decision to prematurely remove their own content from the platform). We know this is a priority for you and hope there is a deal to be had before Comcast is contractually obligated to do so in about 18 months.",
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      "text": "2. Dividend Policy: In a prior letter, we proposed that the Company continue the policy initiated under Covid when parks were closed to suspend payment of a cash dividend. We urge the Company to preserve this policy and use free cash flow to pay down debt, repurchase shares, or organically reinvest in the business.",
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      "text": "1. Cost Cutting: Disney’s costs are among the highest in the industry, and we believe Disney significantly underearns relative to its potential. We urge the Company to embark on a cost cutting program that addresses both margins and the disposal of excess underperforming assets.",
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      "text": "constructively with all parties, since the Company will likely require additional strategic, capital allocation, and governance changes to ensure its success.",
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      "text": "I realize some of our suggestions may already be in the works, but since we do not possess any material non-public information, we thought it might be useful to share our thinking on five important initiatives that we believe will unlock further value in the near-term.",
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