Nelson Peltz Has Sold His Entire Stake in The Walt Disney Company
Just weeks after Nelson Peltz lost his proxy battle to gain a seat on The Walt Disney Company’s board of directors, the activist investor sold his entire stake in the company.
Last October, Peltz’s Trian Partners upped their stake in Disney to 30 million shares and launched a second proxy fight in a bid to get two seats on the board.
Nelson Peltz
Backed by the shares of longtime Iger antagonist Ike Perlmutter, Peltz would begin what would eventually be the most expensive proxy battle in history.
Peltz Was Soundly Defeated in April
When it came time for shareholders to vote for the board of directors at Disney’s annual meeting in April, however, Peltz was soundly defeated, garnering just 31% of the vote. His ally, former Disney CFO Jay Rasulo, fared even worse, with just 12% of shareholders supporting his bid.
Following his defeat, Peltz attempted to spin the outcome into a win.
Photo: CNBC
“While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders. We are proud of the impact we have had in refocusing this Company on value creation and good governance. Since we re-engaged with the Company in late 2023, Disney has announced a host of new operating initiatives and capital improvement plans,” he said.
Photo: Disney
“The Board has been refreshed with two new directors. Over the last six months, Disney’s stock is up approximately 50% and is the Dow Jones Industrial Average’s best performer year-to-date.”
The Activist Investor Had Vowed to Return
Perhaps more importantly, however, Peltz warned Iger that should Disney’s board not live up to their promises, he would be back for a third proxy battle.
“I hope Bob can keep his promises,” Peltz said. “I hope they can do all the things they assured us they were going to do. And we’ll only watch and wait. If they do it, they won’t hear from me again.”
NBC News
As it turns out, Peltz’s vow to hang around was just more hot air from the activist investor.
Peltz Made Roughly $1 Billion on His Trade
According to CNBC, Peltz sold his stake in Disney at roughly $120 dollars a share. That is about 20% higher than the stock currently trading for, and it netted Peltz a gain of $1 billion in his position.
While Peltz may have made quite the profit on his trade, it’s hard not to call the activist investor the loser in the whole ordeal.
Photo: REUTERS/Mike Blake
For Disney and Bob Iger, meanwhile, another foe has been vanquished.
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below. One of the agents from MickeyTravels, a Diamond level Authorized Disney Vacation Planner, will be in touch soon! Also, Thanks for reading!
