Disney defeats activist investor Nelson Peltz in proxy fight
Posted: Apr 03, 2024
- Disney (DIS) successfully defeated activist investor Nelson Peltz in a proxy fight to secure board seats at the company - Disney's board will remain intact following a shareholder vote by a substantial margin - Disney also defeated activist Blackwells Capital, urging shareholders to add three nominees to the board - Disney's stock traded slightly lower immediately after the results, down about 1% - The outcome represents a win for Disney in the short term, but the board will face pressure to deliver results due to shifting consumer trends towards streaming services - Trian Fund Management, led by Nelson Peltz, sought to shake up Disney's board citing loss in shareholder value and disappointing studio content - Prior to the vote, Peltz secured backing from influential proxy advisory firm ISS and notable shareholders like Ancora and Yacktman Asset Management - Succession was a key issue, following the ousting of former CEO Bob Chapek in 2022 - Disney pushed back against Trian's claims, citing significant progress in turning around the business - Disney's stock price has reacted positively to the changes, up about 35% so far in the year with record highs.
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