Activist investor Nelson Peltz is preparing to once again influence the board of The Walt Disney Company. The investor has been continuing to buy up Disney stock and now has a $2.5 billion stake in stock of The Walt Disney Company. The Wall Street Journal is reporting that Peltz is gearing up for another push to be granted board seats.
Peltz’s Trian Fund Management has been continuing to respond to Disney’s stock’s decline. Currently Disney stock is down around 16% since January when Trian pushed for Peltz to be put on the Disney board and publicly criticized Disney’s corporate management along with the weak performance of the stock. However, in February Trian and Disney reached a deal that led Peltz backing off on his demands and Disney undergoing a substantial restructuring. There was also major cost cutting measures put into place. In July, Disney CEO Bob Iger also floated the idea of either selling ABC and other linear television assets. Disney also has been looking at partnership options for ESPN.
This apparently has not been enough for Peltz who has once again decided to revive a campaign for more influence with Disney. He has been steadily buying more Disney stock in recent months and is looking to make his own nominations for the board, including himself, when they open in December. The decision to push forward with this comes as media companies are figuring out how to transition their business models from a traditional linear model to streaming. This has led to new challenges for these companies that have only been amplified by labor strikes this summer.
It is unknown at this point how Disney will respond to Peltz’s newest efforts. Daps Magic will continue to follow this story and provide updates as they become available. What do you think should be done with Disney and its stock moving forward? Should Nelson Peltz and/or one of his representatives be added to the board? Should Disney work with him? Share your thoughts and opinions in the comments below!
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