As Disney looks to court investors back to the “Happiest Place On Earth,” it’s facing a new challenge — activist investor Nelson Peltz. 🫢
Trian Fund Management is Peltz’s activist investor firm, founded in 2005. The firm’s website describes itself as “a highly engaged shareholder, bringing a private equity mindset to the public markets.” And this isn’t its first time butting heads with Disney’s management.
The fund first took issue with management during its 2019 acquisition of Fox. And its attitude hasn’t changed since. Recently Peltz has stated that“Fox hurt this company. Fox took the dividend away. Fox turned what was once a pristine balance sheet into a mess.”
But like most activist investors, he didn’t stop at talking. ⚔️
In recent months the firm has accumulated roughly 9.4 million shares of Disney, worth $900 million. Since early December, it’s been pushing for a board seat to access internal numbers and identify opportunities the company is missing. 🕵️
Ultimately, Peltz believes the company “has lost its way, resulting in a rapid deterioration in its financial performance.”
However, Disney is actively opposing Peltz’s attempt to join the board. This week the board appointed Mark Parker, the executive chairman of Nike, as its next chairman. It hoped the move could help avoid a drawn-out proxy battle, but Peltz isn’t backing down that easily. 🛡️
$DIS shares have recently rebounded with the broader market but remain 50% off their all-time highs set in 2021. Whether or not Peltz succeeds, it appears the additional pressure on management is a welcome sign from other shareholders.
