By Svea Herbst-Bayliss

BOSTON, Oct 9 (Reuters)Billionaire investor Daniel Och, who founded hedge fund Och-Ziff Capital Management, said in a filing on Friday that he plans to raise $750 million through a blank check acquisition vehicle, becoming the latest major hedge fund investor to launch one.

Och, who started Och-Ziff in 1994, retired as its chief executive in 2018 and left the firm, which is now called Sculptor Capital Management SCU.N, last year.

Ajax I, will be managed by Och and investor Glenn Fuhrman, who co-founded MSD Capital, which manages Michael Dell’s fortune, in 1998. Instagram co-founder Kevin Systrom, Square co-founder Jim McKelvey, 23andme co-founder Anne Wojcicki and Chipotle founder Steve Ells will serve on the board.

Ajax sponsors have reduced the promote to 10% instead of the usual 20%, according to the regulatory filing.

Ajax said it will seek a company that operates in the internet, software, financial technology or consumer industries.

Och, through his family office Willoughby Capital Holdings, has a long track record of investing in technology companies including Coinbase, Instacart, Stripe and Robinhood.

He now joins the ranks of hedge fund managers William Ackman’s Pershing Square, Jeffrey Smith’s Starboard Value LP and Daniel Loeb’s Third Point LLC who have all raised pools of capital known as special purpose acquisition companies (SPACS).

A SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years.

In total, 112 SPACS have raised $42.9 billion through an IPO in the first nine months of 2020, making it the biggest year on record, according to SPAC Research data.

A merger with a SPAC allows a private company to access capital quickly and quietly, which is especially beneficial during the volatile trading conditions that have been influenced

Activist investor Dan Loeb is urging The Walt Disney Company’s CEO Bob Chapek to halt its $3 billion annual dividend payment and redirect the funds towards content production and acquisition for its streaming service, Disney+, according to a letter Wednesday obtained by FOX Business.

Ticker Security Last Change Change %
DIS WALT DISNEY COMPANY 122.89 +2.04 +1.69%

“By reallocating a dividend of a few dollars per share, Disney could more than double its Disney+ original content budget,” Loeb wrote. “These incremental dollars would, based on our analysis, generate returns that are multiples of the stock’s current dividend yield by driving high life-time-value  subscribers to your [direct-to-consumer] platform.”

Besides bringing in additional subscribers, Loeb said “increased velocity of dedicated content production will deliver several knock-on benefits spread across your existing base including elevated engagement, lower churn, and increased pricing power.”

Loeb, who doubles as CEO and chief investment officer of hedge fund, Third Point LLC wrote that driving more subscriber growth, while reducing “churn” and increasing pricing will “present the opportunity to create tens of billions of dollars in incremental value for Disney shareholders in short order, and hundreds of billions once the platform reaches a larger scale.”

Churn is the rate at which customers stop subscribing to video services.

Disney announced in its third quarter earnings report in August that the streaming service had surpassed 60 million subscribers. Meanwhile, Disney-owned Hulu has surpassed 35.5 million subscribers and ESPN+ has surpassed 8.5 million subscribers.

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 4.04 -0.02 -0.49%

The letter comes as the coronavirus has prompted the acceleration of cord-cutting from traditional cable and has forced media companies to adapt to a new release model while the pandemic continues

Activist investor Dan Loeb is urging The Walt Disney Company’s CEO Bob Chapek to halt its $3 billion annual dividend payment and redirect the funds towards content production and acquisition for its streaming service, Disney+, according to a letter Wednesday obtained by FOX Business.

Ticker Security Last Change Change %
DIS WALT DISNEY COMPANY 122.89 +2.04 +1.69%

“By reallocating a dividend of a few dollars per share, Disney could more than double its Disney+ original content budget,” Loeb wrote. “These incremental dollars would, based on our analysis, generate returns that are multiples of the stock’s current dividend yield by driving high life-time-value  subscribers to your [direct-to-consumer] platform.”

Besides bringing in additional subscribers, Loeb said “increased velocity of dedicated content production will deliver several knock-on benefits spread across your existing base including elevated engagement, lower churn, and increased pricing power.”

“Together, the ability to drive subscriber growth, reduce churn, and increase pricing present the opportunity to create tens of billions of dollars in incremental value for Disney shareholders in short order, and hundreds of billions once the platform reaches a larger scale,” he added.

Disney announced in its third quarter earnings report in August that the streaming service had surpassed 60 million subscribers. Meanwhile, Hulu has surpassed 35.5 million subscribers and ESPN+ has surpassed 8.5 million subscribers.

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 4.04 -0.02 -0.49%

The letter comes as the coronavirus has prompted the acceleration of cord-cutting from traditional cable and has forced media companies to adapt to a new release model while the pandemic continues to prompt the closure of theaters across the globe, including Cineworld’s Regal Cinemas. As for Cineworld’s competitors, AMC and Cinemark, both have expressed their commitment to remain

  • Hedge fund billionaire Dan Loeb urged Disney to suspend its dividend payments and instead use those funds to grow Disney+ streaming. 
  • The founder of Third Point wrote a letter on Wednesday to CEO Bob Chapek saying that reallocating this dividend money could double the company’s streaming services budget for original content, Bloomberg reported. 
  • Loeb’s push to build out streaming comes as in-person movie theaters continue to suffer throughout the pandemic.
  • “Every Hollywood executive has been able to enjoy first-run films in the comfort of their home theaters for years,” he said. “We urge you to democratize this experience.”

Investor Dan Loeb urged Disney CEO Bob Chapek to end the company’s annual $3 billion dividend payments and redirect those funds to building up Disney+ in a Wednesday letter.

The founder of Third Point said that reallocating dividend money to Disney+ could double the streaming service’s budget for original content, bring in additional subscribers, lower churn, and boost pricing power, according to the letter obtained by Bloomberg. His push for streaming comes as in-person movie theaters continue to suffer throughout the pandemic.

“Every Hollywood executive has been able to enjoy first-run films in the comfort of their home theaters for years,” he said. “We urge you to democratize this experience.”

Read more: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election — and says Trump ending negotiations doesn’t threaten the economic recovery

In August, Loeb initiated a long position in Disney during the second quarter and said in a quarterly letter that streaming is Disney’s “biggest market opportunity ever with potentially $500 billion of revenue.” 

Shares of Disney rose as much as 2% during Wednesday trading. The media giant is down nearly 15% year-to-date but has gained over


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