Nelson Peltz has initiated a proxy battle against Disney, urging investors to nominate him and former Disney Chief Financial Officer Jay Rasulo to replace current board members Michael Froman and Maria Elena Lagomasino. However, Disney’s robust earnings and series of content and partnership announcements seemed to directly challenge Peltz’s apprehensions about the company. Disney Chief Executive Bob Iger stated in an interview with CNBC’s Julia Boorstin that the company does not need to be distracted by activists with different agendas who do not grasp their company. During the first-quarter earnings conference call, he also remarked that the company is entering a new era and has turned the corner. Despite this, Peltz asserted in a statement to CNBC that he will not give in this time, referencing his previous attempts and expressing dissatisfaction with the outcome. This quarter, Disney made a series of significant announcements, including the launch date of ESPN’s direct-to-consumer service, the acquisition of a $1.5 billion stake in Epic Games, Taylor Swift’s Eras Tour film coming to Disney+, a dividend increase, the announcement of a sequel to “Moana,” and planned spending cuts. Additionally, Disney unveiled a joint venture with Warner Bros. Discovery and Fox to offer ESPN in a new linear network bundle catering to sports fans, marking the first opportunity for cord-cutters and cord-nevers to access ESPN outside the traditional cable bundle. These numerous announcements aligned with the pressure from activists such as Trian and Blackwells Capital, prompting Iger to defend his performance and strategy. Peltz has been critical of Iger’s leadership, particularly as Disney’s shares have underperformed the S&P 500 in the past year. Trian has launched a website, Restorethemagic.com, claiming Disney has “not performed for shareholders.” Iger stated that he has not conversed with Peltz recently and does not plan to do so, while a filing from Disney mentioned that the decision not to recommend Mr. Peltz was based on various factors, including the absence of strategic ideas presented by him during his two-year quest for a seat on the Disney Board.
