Disney CEO Bob Iger successfully defended the company against an aggressive challenge by activist investor Nelson Peltz, who sought to push the entertainment conglomerate in a new direction with concrete succession plans and criticism of efforts to make more diverse movies and shows. Shareholders backed board members supported by the current company leadership, denying seats for Peltz and his ally Jay Rasulo. This victory for Iger comes at a pivotal time for Disney as it faces challenges such as the rise of streaming, the decline of traditional television, and competition from social media amidst the wider American culture wars.
Disney’s share price has been relatively flat over the past decade, prompting the ire of activist investors like Peltz, who aim to influence companies for greater returns. The Disney+ streaming platform, despite heavy promotion, is not yet profitable, and beloved franchises like Marvel and Star Wars have seen declining interest. ESPN, a traditional television staple for Disney, continues to lose viewers in the wake of cord-cutting trends. Business analysts have criticized Disney’s strategy of attempting multiple initiatives simultaneously rather than focusing on a single one for success.
The latest push against Iger was led by activist hedge fund Trian Partners, run by Peltz, who criticized Disney’s leadership and board oversight. Peltz also took issue with Disney’s efforts to produce more diverse and inclusive entertainment, questioning the emphasis on gender and racial diversity in Marvel projects. Despite some crucial endorsements, including from the proxy advisory firm ISS and pension fund CalPERS, Iger received support from influential figures like Star Wars creator George Lucas and key institutional shareholders such as BlackRock and T. Rowe Price.
Despite his previous successes in turning Disney into a global powerhouse through strategic acquisitions of marquee brands like Pixar, Marvel, Lucasfilm, and 21st Century Fox, Iger’s reputation has been marred by recent skirmishes with figures like Peltz, Elon Musk, and Florida Governor Ron DeSantis. He attempted to reassure Wall Street during Disney’s quarterly earnings call by announcing new initiatives such as investing in the maker of “Fortnite,” launching a sports streaming service in 2025, and releasing a feature-length animated sequel to “Moana.” Despite challenges facing Disney, Iger’s victory in fending off the activist investor challenge underscores his continued influence and leadership within the company.
