Nelson Peltz Ends His Proxy Fight, Will Not Join Disney Board
Activist investor Nelson Peltz’s bid to “Restore the Magic” is officially over.
Following Disney’s QI earnings call on Wednesday, Peltz announced the end of his proxy battle, ending a months long headache for the Walt Disney Company.
Photo: restorethemagic.com
Now Disney plans to do everything we wanted them to do,” Peltz told Jim Cramer on Thursday. “We wish the very best to Bob [Iger], this management team and the board. We will be watching. And we will be rooting.”
Peltz, who heads Trian Fund Management, officially launched his proxy fight with Disney in January, following months of behind the scenes maneuvering in an attempt to gain a seat on the Disney board.
CEOs Bob Chapek and Bob Iger dealt with Nelson Peltz behind the scenes. Photo: LA Times
A Months Long Battle
The activist investor, publicly criticized Disney for their 2019 acquisition of Fox, lack of streaming profitability, and suspension of the dividend.
After an icy meeting with Disney brass last winter, Peltz publicly launched his “Restore the Magic Campaign” and asked Disney shareholders to vote him to the board.
Photo:restorethemagic.com
While Disney has publicly opposed Petlz’s ascension to the board, and questioned his understanding of the entertainment industry, on Wednesday, Bob Iger seemed to address many of Peltz’s concerns.
Photo: The Walt Disney Company
Disney Restructured
The returning CEO announced a massive restructuring of the company, that sees the media behemoth broken up into three divisions. The company will now be comprised of: Disney Entertainment, ESPN, and a Parks, Experiences, and Products unit.
Source: techhive.com
With this restructuring, Disney also announced that it would be cutting $5.5. billion in costs, and eliminating 7,000 jobs from its workforce.
On Wednesday, a Trian spokesperson responded to the changes saying, “We are pleased that Disney is listening”.
Dividend Returning?
Petlz’s main talking point throughout his proxy battle has been the company’s lack of dividend. On Wednesday, Iger also addressed that concern, stating that he aimed to ask the board to approve the reinstatement of the dividend by the end of the calendar year.
Photo: PRNewsFoto/The Walt Disney Co.
The Walt Disney Company has not issued a dividend payment since the onset of the COVID-19 pandemic.
Now that Peltz’s seems to have gotten much of what he wanted, the investor is lowering his sword.
Photo: REUTERS/Mike Blake
“The proxy fight is over,” he said.
It has been an amazing 48 hours for CEO Bob Iger. He delivered positive results in his first quarter back on Wednesday. And one day later, ended a proxy battle that was a very public headache for the company.
Photo: AFP
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