The battle lines in the war over Disney’s board
Disney’s contentious proxy battle is in the homestretch. After several years of share price underperformance at the entertainment giant, at least three activist shareholders have launched proxy campaigns, with some hoping to get their own candidates elected on Disney’s board. Investors have begun casting votes ahead of Disney’s April 3 annual meeting.
Here’s a look at the state of play. Trian Fund Management head Nelson Peltz and Disney Chief Executive Bob Iger have a history of butting heads. In January 2023, after a pronounced decline in Disney’s stock price, Peltz launched an activist campaign.
Iger announced plans to cut 7,000 jobs and reduce spending by $5.5 billion, and Peltz dropped the campaign ahead of last year’s shareholder vote. Disney’s stock price continued to fall for much of last year, prompting Peltz to launch a new initiative. In the latest campaign, called “Restore the Magic," Trian has said Disney lags behind its peers and has underperformed since Iger was appointed CEO in 2005.
Disney has rejected Trian’s candidates, saying in proxy materials that Peltz lacks experience in the entertainment sector. Disney delivered a strong first-quarter earnings report that beat Wall Street’s expectations for several key metrics and announced several high-profile initiatives, including a deal to invest $1.5 billion in return for an equity stake in Epic Games, the maker of “Fortnite." In February it also unveiled a partnership with rivals Fox Corp. and Warner Bros.
Discovery to launch a sports-focused streaming service later this year. Disney and Peltz have been courting shareholders in recent months, making the case for why investors should support their director nominees. Blackwells Capital, another activist hedge
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