Activist investor urges Disney to add Trian's Nelson Peltz to its board

Activist investor urges Disney to add Trian's Nelson Peltz to its board


Disney World’s Magic Kingdom in Orlando, Florida.

Joe Raedle | Getty Images News | Getty Images

Activist investor Ancora on Tuesday urged Disney to put Nelson Peltz on its board, days after Peltz and his firm, Trian, launched a proxy fight with the entertainment giant.

“In an effort to avert an election contest following a year of distractions and disappointing performance, we hope you join us in encouraging the Board to pursue a viable compromise with Trian Fund Management, L.P. and Nelson Peltz,” Ancora wrote in the letter. “Mr. Peltz (or a qualified designee) would make a fantastic addition to Disney’s Board.”

Ancora also suggested that much of Disney’s difficulties in recent years — including streaming losses and and several box office flops — could be pinned on the company board.

“A degree of shareholder-driven change is certainly warranted in Disney’s boardroom following an extended period of absentminded governance, ineffective succession planning, polarizing actions and sustained value destruction,” Ancora said Tuesday. “While it has been argued that challenges largely stem from the tenure of Bob Chapek, the Board was in the driver’s seat before, during and after that time.”

Disney fired back at Trian last week, suggesting that the move was fueled by a personal grudge against Disney CEO Bob Iger held by Peltz ally and former Marvel boss Ike Perlmutter. Trian oversees about $3 billion in Disney stock, but the overwhelming bulk of the shares is owned by Perlmutter, whom Disney laid off earlier this year. Trian is seeking more than two seats on Disney’s board, which is populated by directors seen as loyal to Iger.

Ancora’s announcement Tuesday didn’t disclose the size of its stake in Disney. Ancora owned more than 60,000 shares of Disney as of September, according to FactSet. That would be equivalent to an approximately $6 million stake as of Tuesday.

Disney had a market cap of about $160 billion as of Tuesday, its shares falling about 2%. The stock is up more than 4% this year, underperforming the broader S&P 500.

Disney did not immediately respond to CNBC’s request for comment.

Don’t miss these stories from CNBC PRO:



Source

Bill Gates doubles giving to 0 billion, says philanthropists can’t cover government cuts
Business

Bill Gates doubles giving to $200 billion, says philanthropists can’t cover government cuts

Bill Gates arrives for a press conference to launch the Global Polio Eradication Initiative at the European Commission’s Berlaymont headquarters in Brussels on October 11, 2023. Simon Wohlfahrt | Afp | Getty Images Billionaire Bill Gates announced on Thursday that he will double his charitable giving to $200 billion over the next 20 years. In […]

Read More
Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook
Business

Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

Justin Sullivan | Getty Images News | Getty Images Krispy Kreme stock plunged 24% on Thursday morning after the doughnut chain said it is “reassessing” its rollout with McDonald’s and pulled its full-year outlook in part due to economic “softness.” Krispy Kreme is not planning to launch its doughnuts in any additional McDonald’s locations in […]

Read More
Restaurant Brands earnings miss as Burger King, Popeyes and Tim Hortons post same-store sales declines
Business

Restaurant Brands earnings miss as Burger King, Popeyes and Tim Hortons post same-store sales declines

A Burger King restaurant is seen on October 25, 2024 in New York City.  Michael M. Santiago | Getty Images Restaurant Brands International on Thursday reported quarterly earnings and revenue that missed analysts’ expectations as same-store sales of Popeyes, Burger King and Tim Hortons declined. But the restaurant company is seeing sales turn around already. “As we […]

Read More