The battle for the future of Disney is reaching its conclusion, with Nelson Peltz and his Trian Fund Management waging a proxy war against the current leadership. Peltz and Jay Rasulo, a Disney veteran, could potentially secure board seats, giving them the power to serve as a check on leadership. However, if Peltz fails, it will be a vote of confidence for CEO Bob Iger and the Disney board.
Peltz has raised concerns about Iger potentially staying beyond his current contract, Disney’s film strategy, and wanting the company to achieve “Netflix-like margins.” However, it remains unclear what Peltz would do differently, aside from ensuring proper succession planning after the botched appointment of Bob Chapek. Industry experts question whether Peltz has offered a clear turnaround plan.
To bolster support for current leadership, Disney has recruited industry heavyweights like George Lucas, Laurene Powell Jobs, Jamie Dimon, and the grandchildren of Walt and Roy Disney to voice their backing. On the other hand, Peltz has powerful allies such as former Marvel Entertainment chief Ike Perlmutter, Institutional Shareholder Services, and CalPERS. The battle between Disney and Trian has been costly, with both sides spending over $60 million to sway investors.
The results of the board vote will be disclosed at Disney’s annual shareholder meeting, but even if Iger and the board emerge victorious, the war may not be over. Restless investors, including Peltz, could spring back into action if Disney’s stock price falls. The dissatisfaction within the company indicates that even a win for Iger may not put an end to the conflict.
The battle has punctured the notion of Iger’s invincibility, with industry insiders noting that he has lost his aura of infallibility. The experience has been described as humbling and humiliating for Iger and the board, raising questions about whether they will learn from their mistakes or dismiss the conflict as a nuisance. The outcome of the battle will have significant implications for the future direction of Disney and its leadership.
