Nelson Peltz ends Disney proxy fight amid Bob Iger’s restructuring plans
Nelson Peltz’s Trian Fund Management is ending its proxy war with Disney after the company confirmed plans for aꦇ major internal restructuring, the famed activist investor revealed on Thursday.
Peltz confirmed an end to his clash with the Mouse House’s board of directors after CEO Bob Iger announced a sweepi💟ng initiative to shave $5.5 billion in costs and slash 7,000 jobs on Wednesday.
“This was a great win for all the shareholders,” Peltz said on CNBC’s “Squawk on the 𓄧Street.”
“Management at Disney now plans to do everythingꦑ that we wanted them to do. We wish the very best to Bob [Iger], this management team and the board. We will be watching. We will be rooting and the proxy fight is over,” Peltz added.
Disney cheered Peltz’s change of heart.
“We respect and value the input of all our shareholders and we appreciate the 🐷decision by Trian Fund announced by Nelson Peltz 𝓀this morning,” Disney’s board of directors said in a statement.
“We are pleased that our Board and mana🅰gement can remain focused without the distraction of a proxy contest, and we have tremendous faith in Bob Iger’s leadership and the transformative vision for꧃ Disney’s future he set forth yesterday,” the statement added.
Disney sh♏ares jumped about 3.5% in early trading on Thursday but close🌊d down 1.3% to $110.36.
Iger, 71, will reorganize the business into three segments – one focused on film, television and🌱 streaming assets, one on the sports media giant ESPN and one on the company’s theme parks and experiences.
He said the reordering would result in a “more cost-effective, coordinated approach t♐o our operations.” It also addressed some of the concerns expressed by Peltz, who had accused Disney of spending too much money on its streaming services💮.
Iger unveiled the restructuring plans as Di𝐆sney topped Wall Street’s earnings expectations in the first quarter. The company r﷽eported adjusted earnings per share of 99 cents, ahead of the 78 cents expected by analysts.
Peltz’s Trian, which holds less than a 5% stake in Disney worth roug𝔉hly $1 billion, had launched a proxy fight last month and demanded that h♚e receive a seat on the company’s board of directors.
Aside from his criticism of Disney’s spending on streaming, Peltz argued that the company had overspent in its acquisition of 21st Century Fox and said the company had messed up its succession pl🦄anning when Iger first s😼tepped down as CEO in 2020.
“Shareholders need someone in the boardroom who is experienced enough, committed enough and objective enough to insist that Disney live up to its full potential,” Trian said in a letter to shareholders.
✨The disput🍬e began just weeks after Iger ousted his successor Bob Chapek and returned as Disney’s CEO with mandate to reverse the company’s recent stock slump.
Disney slammed the proxy initiative in a letter to shareholders at the time, asserting that Peltz “has demonstrated that he does not understand Disney’s businesses.”
With Post wires
