The Walt Disney Company Issues Response to Nelson Peltz Claims
The Walt Disney Company has been in the news quite a bit over the past few months.
Not long ago, Disney removed Bob Chapek as CEO and reinstated Bob Iger as CEO, and billionaire businessman Nelson Peltz recently had some thoughts about how the Walt Disney Company is being managed. After Peltz filed a request with the SEC for a spot on the Board of Directors, Disney is now firing back.
Who is Nelson Peltz?
Nelson Peltz, the Trian Group CEO, is an activist investor and one of the founding partners of Trian Fund Management. According to Variety, Peltz has been making the case to join The Walt Disney Company’s Board of Directors since July 2022, when he met with former CEO Bob Chapek in Disneyland Paris.
Recently, Peltz was in the news arguing that The Walt Disney Company had suffered poor share performance under the leadership of former CEO Bob Chapek and former/current CEO Bob Iger, and that Iger overpaid for the acquisition of 21st Century Fox.
Peltz also argued that Disney had a “flawed” direct-to-consumer strategy with Disney+, claiming that the model for the newer streaming service was too similar to the well-established Netflix model.
Peltz asserted that he would “mount a proxy fight citing underwhelming share performance” in order to secure a spot on the board.
Currently, Peltz’s Trian Fund Management owns an approximately $900 million stake in The Walt Disney Company, according to Reuters.
The Walt Disney Company SEC Proxy Statement
In response to these comments by Nelson Peltz, The Walt Disney Company published an SEC (United States Securities and Exchange Commission) proxy statement ahead of an upcoming meeting of shareholders, which details the contact between Disney and Peltz’s Trian Group and also outlines a timeline of events leading to the removal of Bob Chapek as CEO and the reappointment of Bob Iger as CEO.
You can read the full statement here.
The SEC statement and presentation make the case to support the current Board of Directors and Bob Iger as CEO, as well as refute Peltz’s recent claims.
According to Disney’s statement, “Nelson Peltz does not understand Disney’s businesses and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem.”
The presentation includes “key strategic changes” that are currently being implemented by management, including “improving the guest experience by providing more value and flexibility.”
Disney also refutes Nelson Peltz’s claims with what they refer to as “the actual facts.”
You can read The Walt Disney Company’s full statement here. We’ll be watching this developing situation closely, so stay tuned for more from MickeyBlog.