All articles tagged with #trian partners
Disney shares rose as activist investor Nelson Peltz's firm, Trian Partners, exited its $3.5 billion stake in the company. This follows a contentious battle for board seats, which Disney CEO Bob Iger won. Investors are now optimistic about Disney's focus on growth and value creation.
Billionaire activist investor Nelson Peltz has sold his $1 billion stake in Disney after losing a costly proxy battle to gain a seat on the company's board, marking a victory for CEO Bob Iger.
Activist investor Nelson Peltz has sold his entire stake in Disney for about $1 billion, weeks after losing a proxy battle to elect himself and former Disney finance chief Jay Rasulo to the company's board. Peltz's Trian Partners had criticized Disney's governance, streaming strategy, and CEO succession plan. Disney shares have risen approximately 11% this year.
Nelson Peltz's Trian Partners released a white paper analyzing Disney's financial performance and proposing strategic changes, including increasing creative risks in content production, making fewer movie sequels, and merging Disney+ and Hulu product and content organizations to cut costs. Trian also recommends launching ESPN's standalone streaming service with a 'bundle' partner like Netflix or Amazon, and insists on achieving "Netflix-like" streaming margins by 2027. Additionally, Trian suggests refreshing Disney's board, fixing succession issues, and enhancing corporate governance and accountability.
Trian Partners, an activist investor in Disney, has released a 130-page memo criticizing Disney's board of directors and outlining plans to revamp the company, including suggestions to "right-size" its studio business and linear TV networks, consolidate Disney+ and Hulu, and evaluate ESPN's streaming service. Another activist, Blackwells, has proposed spinning out Disney's real estate holdings and using AI to expand the parks business. Disney has responded by promoting CEO Bob Iger and announcing new projects, while also enlisting support from the descendants of Walt Disney and Roy O. Disney in the board seat battle.
Disney has set April 3 as the date for its annual shareholder meeting, where activist investors Nelson Peltz's Trian Partners and Blackwells Capital have submitted their own board nominations. Trian is targeting two Disney directors and recommending Peltz and a former Disney CFO, while Blackwells is nominating three individuals. The company's proxy includes CEO Bob Iger's 2023 pay package and a formal rejection of the Trian nominees. Both Disney and the activist investors will have over two months to make their cases to shareholders, with third-party firms expected to weigh in on the matter.
Nelson Peltz, through Trian Partners, is seeking to replace two Disney board members, Michael Froman and Maria Elena Lagomasino, with himself and ex-Disney CFO Jay Rasulo. Trian alleges that Froman and Lagomasino lack relevant experience and have overseen poor corporate governance and compensation practices. Trian also wants Disney's board to focus on corporate governance, streaming profitability, creative output, and growth in Disney's Parks and Experiences unit. Additionally, Trian recommended voting against three board candidates nominated by another Disney shareholder, Blackwells Capital, leading to a clash of interests and strategies within the company.
Nelson Peltz's Trian Partners has released a preliminary proxy statement targeting Disney board members Michael B.G. Froman and Maria Elena Lagomasino, urging shareholders to withhold their votes for them and instead vote for Peltz and former Disney CFO Jay Rasulo to join the board. Trian argues that Froman and Lagomasino lack relevant experience and oversight on compensation practices. Another activist, Blackwells Capital, has also nominated its own board slate, leading to a potential showdown at the annual meeting, with third-party firms expected to weigh in on shareholder recommendations.
Trian Partners, led by founder Nelson Peltz, has nominated former Disney CFO Jay Rasulo for a seat on Disney's board as part of a new proxy battle. Trian has criticized Disney's underperformance and lack of shareholder representation on the board. Disney has responded by stating that it has an experienced and qualified board focused on long-term performance and shareholder value. This is Trian's second proxy fight in two years, and it is speculated that the inspiration behind the fight is former Marvel chairman Ike Perlmutter.