Blackwells Capital Believes Disney Should Consider Breaking Up Into Three Entities
As Disney uses Ludwig Von Drake to encourage shareholders to vote for their board nominees, Blackwells Capital is employing more traditional methods to prop up its candidates.
In an open letter to shareholders, Blackwells touted their three board candidates, arguing that they would help drive growth, review real estate earnings, and bring technology expertise.
As the three Blackwells nominees would be entering the Disney world with fresh eyes, the activist investor says that the trio could help the company “explore all strategic possibilities with cold eyes.”
One idea Blackwells floated would break Disney into three separate entities, which could become standalone public companies.
Blackwells Has Traditionally Supported the Disney Board
Unlike Nelson Peltz and his Trian Fund Management, Blackwells is looking to expand the board, not replace any Disney directors.
Additionally, Blackwells has publicly supported Disney CEO Bob Iger, while Peltz and Ike Perlmutter (who have supplied Trian with the majority of its Disney shares) have been longtime thorns in Iger’s side.
Blackwells believes that Jessica Schell, a former general manager of Warner Bros Home Entertainment, could help Disney in the streaming sphere. With Schell’s insight, the activist investor believes the company could achieve a “Netflix-like growth rate on subscribers and pricing for Disney+.”
The other two Blackwells nominees are Craig Hatkoff, who has real estate experience, and Leah Solivan, who could help the company in the AR/VR sphere.
Disney Has Asked That Voters Reject Both the Trian and Blackwells Nominees
Despite the fact that Blackwells and the Disney board have been allied in the past, Disney is urging voters to reject the Blackwells and Trian nominees and instead vote for Disney’s candidates.
“Remember, it’s important you vote only for Disney’s 12 nominees using the white proxy card. Do not vote for the Trian Group or Blackwells’ nominees,” Disney said in a new video yesterday. “Voting this year is critical, no matter how many or how few shares you may own.”
While shareholders have traditionally agreed to Disney’s wishes, the company will be fighting a two-front battle at its annual meeting. Whether or not the company can fend off both Blackwells and Trian will say a lot about Bob Iger and the strength of the board.
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