A new video that was released by Disney asks the question, “what’s the harm in letting activist investor Nelson Peltz or Jay Rasulo have a seat on Disney’s board.” This video, that feels much like a political ad, goes on to build a case for the exact harm that could happen if Peltz and Rasulo were added to the Disney board of directors.
One way this video does this is by warning of the fate of other companies that Nelson Peltz has influenced. “If they succeed, Disney could suffer the same fate as other companies that they have infiltrated, such as GE and Dupont,” the video says. It also goes on to argue that this effort is more about vanity than about the good of Disney. It questions, “Why else would he sell 500,000 Disney shares over he past 6 months in the middle of his proxy fight?” It also questions why a man with “no media expertise and no experience in running a global entertainment company powered by creativity.” A video is then shown of Peltz saying, “they said I have no media experience, I don’t claim to have that.”
The video then pivots to highlight Jay Rasulo. It says that he is “a former Disney employee who was passed over for a promotion nearly a decade ago. He hasn’t been employed since leaving Disney, and the last time he joined the board of a media company, the stock tanked.”
“What’s more, Peltz and Rasulo have teamed up with another disgruntled former employee, Ike Perlmutter, who has his own lengthy record of destructive behavior inside Disney. Perlmutter has a well-documented grudge with Disney CEO Bob Iger. This sort of personal animus in the board room is more than desruptive, it can be destructive.”
The video then pivots from the destructive actions associated with Peltz and Rasulo to the positive future that is being built by Bob Iger and Disney saying, “despite all of these destractions, Bob Iger and his management team have engineered an ambitious plan to build Disney’s future, positioning the company for a new era of sustained growth and value creation.”
Bob Iger says, “the last thing that we need right now is to be distracted in terms of our time, our energy, by an activist or activists.” This is followed by a list of things that are going well for the company. This includes exceeding of cash flow projections in 2024, stock repurchases, and a cash dividend. The narrator concludes that “after a year of significance fixing that made way for a new era of growth, The Walt Disney Company has turned a corner, and is focused on creating lasting long-term value.” The narrator shares how the value is “reflected in the recent stock performance, improved operating income, as well as the strategic moves recently made by the company.” These include the recent partnership with EPIC Games, the release of Moana 2, and also the arrival of Taylor Swift The Eras Tour on Disney+, and more.
“The Disney board is always open to good ideas from engaged shareholders.” The narrator says that Peltz’s white paper shows quite a few questionable proposals that show his media inexperience, factual misstatements and also proposals that Disney already have implemented. The video concludes that Peltz and Rasulo “threaten to jeopardize the incredible progress the company has made since Bob returned as CEO. At this critical moment, we simply cannot let that happen. The choice is clear. Vote Disney.”
This video is just the most recent salvo in the proxy fight that Disney is facing off against with Nelson Peltz and his Trian Partners. Recently, a more lighthearted video was released by Disney with Professor Ludwig Von Drake arguing for shareholders to vote for Disney’s slate of board nominees. This newest release escalates takes a much more serious tone about what is at stake. The video can be watched here:
What do you think about this newest video from Disney in the proxy fight against Nelson Peltz and his supporters? Do you think it will be successful? Share your thoughts and opinions in the comments below!
