Activist Investor Nelson Peltz’s Push for Board Seats at Walt Disney Co.

Trian Fund Management Increases Stake in Disney

Activist investor Nelson Peltz’s Trian Fund Management is reportedly expected to push for several board seats at Walt Disney Co. This comes as Disney’s shares face pressure from Hollywood strikes and struggles in its streaming businesses.

According to sources, Trian has significantly increased its stake in Disney to over 30 million shares in recent months. This is a substantial jump from their 6.4 million holding at the end of the second quarter. With a stake worth $2.5 billion or more, Trian plans to advocate for a seat for its founding partner, Peltz, as well as several other nominees.

Disney’s Response and Potential Next Steps

Disney’s refusal to accommodate Trian’s request would potentially open the door for Trian to nominate directors for a vote at the annual Spring meeting. Earlier this year, Peltz attempted to secure a board seat but backed off following Disney’s revamp and cost-cutting measures, which resulted in a rise in share prices. However, with a 4.5% decline in stock value this year, Trian believes that Disney needs a more focused board.

Analyst’s Perspective on Disney

Bernstein analyst Laurent Yoon recently initiated coverage of Disney shares with an outperform rating. Yoon expressed a bearish view on the company’s linear-media business. However, he acknowledged that Disney is currently the only viable challenger to Netflix, especially considering its intention to acquire the remaining portion of Hulu that it doesn’t already own.

It should be noted that neither Disney nor Trian have provided any comments regarding this matter.

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