Investor Ross Gerber renewed his call for a major shake-up at The Walt Disney Company on Tuesday, saying shareholders have suffered too long as the stock significantly lagged the S&P 500 over the past 11 years. Responding to data showing Disney lost 10.93% over that period while the SPDR S&P 500 ETF Trust gained 320.1%, Gerber said it is time for real change at Disney and that the company's individual businesses are worth more separately than together. He urged the company to break up or sell itself. Gerber has repeatedly criticized Disney's strategy, recently suggesting Apple should acquire Disney or exit entertainment, and arguing management has failed to unlock asset value while executives receive large compensation packages. Disney has lost more than 45% of its market value over the past five years, with the stock down 20.58% over the past year and 14.05% year-to-date. Wells Fargo analyst Steven Cahall last week said Disney could unlock roughly 40% upside by exiting the streaming business and returning to a legacy model of producing and licensing content, maintaining an Overweight rating despite a lower price target. Disney shares closed 0.21% lower at $96.14 on Tuesday and edged 0.07% higher in extended trading.
Walt Disney CompanyInvestor calls for breakup/sale due to prolonged underperformance and undervaluation.
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