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Daniel Loeb calls on Disney to permanently suspend its dividend

Daniel Loeb is calling on Disney to permanently suspend its dividend. Yahoo Finance's On the Move panel discusses.

Video Transcript

ADAM SHAPIRO: Let's talk about Disney right now. The shares are trading higher. They are up about 1.6%. This is after a note from Dan Loeb talking about the need for Disney to redirect its $3 billion annual dividend payment. Julie Hyman, where does he want this money to go, to the streaming services?

JULIE HYMAN: Yes. He wants it on content creation. That's where he says that Disney should place this money. Now, to give a little background here, back in August we got an SEC filing that showed that Dan Loeb's Third Point, that's his hedge fund, had bought 1.425 million shares in Disney. That's not a very large stake at all. I think it's less than 1%, as Melody pointed out to us. But Loeb tends to be an activist shareholder. He waged an activist campaign at Sony, for example, also in the media business.

And so we were kind of waiting to see what he would say about what he thought Disney should do. He thinks Disney should permanently suspend that dividend of $3 billion worth. He also, one of the other interesting suggestions he's making, is to collapse Disney's disparate streaming services under the Disney+ umbrella. So, remember, now it has Disney+, it has ESPN, it has Hulu, so he says just put it all together. You could still offer tiers, but that they should be under that Disney brand. So some interesting suggestions coming from Loeb on the Disney front.

- And then, Julie, Adam, just to add on, quickly, here-- when you think about our Hollywood discussions that we have on almost a daily basis, Dan Loeb is pretty bullish on the future of Hollywood being online, right? The lead of the letter to Bob Chapek was specifically saying he really admires the success of "Mulan," of "Hamilton," of this direct to the consumer model that, perhaps, originally we were sort of bemoaning, saying that this was the last resort.

Although, I do think it's fascinating to see that now, from the investor community, they're like, forget the movie theater. There are no Regal Cinemas anymore. There's no Cineworlds. Let's just go straight to the platform. So, perhaps, this is going to be an opinion and a point of view that gains more traction in the months to come.