Wednesday’s annual shareholder meeting will be a turning point in Disney’s business direction.
A bloody (and expensive) civil war within Disney will come to an end on Wednesday as the board meets for its annual shareholder meeting. A month-long fight between the current board and billionaire investor Nelson Peltz will reach its climax, determining the future of the world’s largest media conglomerate.
Peltz is the CEO Trian Fund Manager, owning roughly $3 billion in Disney shares. Peltz is currently seeking a seat at the board for himself and former Disney CFO Jay Rasulo. His goal is to challenge the company’s CEO Bob Iger and question his guidance.
Trian spent the last 6 months pushing for Pelz and Rasulo, spending over $25 million in the fight according to Deadline. Trian is seeking to replace current board members Michael B. G. Froman and Maria Elena Lagomasino.
The Wall Street Journal reported that over half of the board voted so far, so things could still change. Members have until 11:59 PM on Wednesday to cast their votes.
Ahead of the meeting, it seems the current Disney board will have the upper hand. Other than the internal support, Iger received backing from BlackRock (4.5% of Disney shares), George Lucas (2%), and JPMorgan (Disney’s defensive adviser) among others.
Other than Trian’s 1.5% share value, Peltz also gathered support from International Shareholder Services (ISS), Disney’s largest proxy adviser firm.
Foundational reforms
What Peltz aims to are profound reforms to the media giant, who has been struggling under constant financial pressure. Years of constant box office flops, an unprofitable streaming segment and internal infighting have hampered Disney’s business growth.
Bob Iger became CEO again after the chaotic ousting of Bob Chapek in 2022. According to Peltz, the question of succession has not been addressed properly and should become a priority. Iger’s term is set to expire in 2026.
“The difference in Nelson Peltz being on the board and not being on the board will be about how much cr*p is he going to give Iger,” one analyst told Deadline. He added that the likelihood of Iger actually leaving his post in 2026 is directly link to today’s shareholder meeting.
The stock market favours Peltz, with Disney’s stock price rising 30% year-to-date after years of slump.
From his part, Bob Iger reassured investors that he’s taking the company on the right course. In the latest shareholder call, he promised to make streaming profitable by 2025 and announced a slate of probable box office hits for 2024.
Whether shareholders believe him or not will become clear on Thursday morning.
