Activist investor Nelson Peltz and Ike Perlmutter, the former chairman of Marvel Entertainment, were unsuccessful in their second attempt to infiltrate Disney’s board in a bid to alter the company’s direction. Disney shareholders rejected Trian Partners’ demand for two board seats, supporting CEO Robert A. Iger’s growth plan instead. Trian controls about $3.5 billion in Disney stock, with most of it owned by Perlmutter, and had previously tried to shake up the board in 2021.
Despite the defeat, Trian received 31% of the shareholder vote in favor of Peltz joining the board. Both Trian and Disney engaged in a costly and contentious proxy contest, with Trian criticizing Disney’s streaming strategy and stock performance while Disney accused Trian of disruption. Perlmutter’s history at Disney included conflicts over movie budgets and content direction, leading to tension between him and Iger.
By winning shareholder support, Iger can move forward with his growth plan for Disney, which includes revamping ESPN for streaming, investing in new theme park attractions, and finding new hit movies. While prominent Disney investors and shareholder advisory firms backed Iger, Trian gained support from influential firms like ISS and Egan-Jones, as well as investors like CalPERS. However, Disney’s largest shareholders, Vanguard and BlackRock, ultimately sided with Iger.
Iger faced challenges even before the board contest, including activist investor attacks, disagreements with Governor DeSantis of Florida, and setbacks in Disney’s film business. Questions remain about the future of Disney, including the potential sale of ABC, ESPN’s transition to streaming, and succession planning for Iger’s eventual retirement. Trian continues to monitor Disney’s performance and calls for a focus on creating content and value for shareholders.
In addition to the Disney-Trian contest, Blackwells Capital, another activist hedge fund, campaigned for board seats but was also rejected by shareholders. Disney’s meeting included other business updates, such as the rejection of Blackwells’ proposal. The outcome of the board contest underscores the ongoing challenges and decisions facing Disney as it navigates its future direction under Iger’s leadership.
