Nelson Peltz Continues To Challenge Disney For Spot on Board
If you’ve been following along with MickeyBlog then you may have seen the news that “Activist Investor” Nelson Peltz continues his push for a seat on the board of The Walt Disney Company. The mogul appeared on CNBC earlier today to talk about Disney’s failures and why he should be given a spot at the board table.
Peltz highlighted for CNBC what he thought the greatest failures were at the House of Mouse saying that under Iger and Chapek’s leadership The Walt Disney Company has suffered from poor share performance which was at an 8-year low before perking up by 3% by the end of the market day today (January 12, 2023.) .
This seems par for the course when it comes to streaming. Similar to what is happening with Netflix, Disney’s share price hit an all time high in 2021 as investors were eager when it came to streaming and the growth of subscribers. Yet, at the moment both Disney and it’s biggest competitor Netflix are down 38% As CNBC tells us, there’s also been a decline at Paramount Global which shares have gone down 45% as well as Warner Bros where shares are down 50%.
Photo: Chip Somodevilla/Getty Images
So what is the cause of some of the financial hardships Disney has been facing? According to Peltz, Bob Iger overpaid in his acquisition of 21st Century Fox. However, not everyone may be on board with Peltz’s option on the matter. Iger continues to be looked at favorably with investors. After all, during his time at Disney, Iger successfully oversaw the acquisition of Pixar, LucasFilm and Marvel.
Photo: measureupgroup.com
Peltz via his fund management company Trian Partners has also gone on record saying that Disney has a “flawed” direct-to-consumer strategy comparing itself too closely to Netflix who already had a streaming model in place years before Disney+ launched in 2019.
So what’s next when it comes to Peltz’s continued campaign to secure a spot on the board!? According to CNBC the Peltz has said that he will mount a proxy fight citing underwhelming share performance, the decision to scrap the dividend and the belief that the Fox deal hasn’t worked.
Meanwhile, Disney’s remedy when it comes to poor stock performance was to bring back Iger and bring in new Board Chairman Mark Parker who has an impressive record with Nike. With the company already taking measures to remedy Disney’s stocks, convincing them that there’s still more to be done and having Peltz on the board is a good solution doesn’t seem that realistic.
Photo: Disney
One thing is for certain, it doesn’t appear that Peltz is going anywhere and will continue to advocate for a spot on Disney’s board. This is a story that we will continue to follow closely here at MickeyBlog and we promise to keep you posted of any further developments.
Readers are encouraged to keep following along with MickeyBlog for further Walt Disney World news and updates. We’ll be coming to you LIVE from the theme parks each and every week.
Have you heard the news? MickeyTravels just earned the incredible distinction of being a Diamond Earmarked Agency!
Whether its a visit to the theme parks, a Disney cruise, a stay at Aulani in Hawaii or the trip of a lifetime with Adventures by Disney, I can’t wait help you plan your vacation utilizing all of our incredible concierge-level services. This includes discount monitoring, itinerary planning, flexible booking and so much more. Best of all my services are 100% FREE!
Find out more or get your FREE no-obligation quote at mroden@mickeytravels.com at 1.800.801.4025 or via Facebook
Source: CNBC
