Should Disney Get Rid of ESPN? The Debate Returns

An activist investor’s suggestion this week that Walt Disney spin off ESPN rekindled a long-running debate over what the corporate ought to do with a sports activities community that has been a serious revenue engine for years however whose subscriber base is eroding.

Daniel Loeb’s Third Point LLC, which owns a small stake in the entertainment giant, informed administration in a letter Monday that there’s a “strong case to be made” for Disney to half with ESPN, which might end in an organization that’s “no longer haunted by the specter of cord-cutting,” or shoppers canceling their pay-TV subscription in favor of streaming companies.