Nelson Peltz declared his proxy fight with Disney was over Thursday after the entertainment giant unveiled a vast restructuring plan, cost cuts and 7,000 layoffs.
“Now Disney plans to do everything we wanted them to do,” Peltz told Jim Cramer on CNBC’s “Squawk on the Street” on Thursday. “We wish the very best to Bob [Iger], this management team and the board. We will be watching. We will be rooting.”
“The proxy fight is over,” said Peltz, who heads Trian Fund Management. He had been seeking a board seat.
Disney said it appreciated Peltz’s decision.
“We are pleased that our Board and management 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 company said in a statement Thursday.
In January, Trian launched a proxy fight with Disney, pushing for Peltz to gain a seat on the board. The activist firm said at the time it owned about 9.4 million…
2023-02-09 11:54:04 Disney proxy fight is over, Nelson Peltz says
Post from www.cnbc.com
On Wednesday, Nelson Peltz, the billionaire investor who held a proxy fight with the Walt Disney Company, announced his plans to withdraw his candidacy for a seat on the media giant’s board of directors.
Peltz, who is the CEO of Trian Fund Management, was vying for a seat on the board of directors of Disney and had argued that his presence on the board would have led to transformative changes in the company. Additionally, he asserted that his presence would have helped the company capitalize on potential synergies with its plethora of brands and properties, ranging from ESPN to Marvel Cinematic Universe.
The board, however, disagreed with Peltz’s views, citing his lack of expertise in the media business and that the company was already making necessary changes. They urged shareholders to reject his candidacy and voted against Peltz.
Despite being rejected, Peltz made one final appeal, asking the shareholders to consider his ideas and vote for him. “It has been clear for some time that the board had no intention of adding me to their ranks,” Peltz said in a statement released Wednesday, “so I have decided to remove myself from the election process and focus on my other investments.”
The battle between Peltz and Disney has been ongoing for months, and has been seen as a test for Disney’s corporate culture and ability to respond to outside criticisms. “It has been a learning process for the company,” said Amy Walter, a media and entertainment analyst. “It not only demonstrates Disney’s resolve and commitment to succeed, but it also shows how seriously they take shareholder feedback.”
While it is not yet clear what implications Peltz’s decision to withdraw will have on Disney, it is a relief to many shareholders who were uncertain about the outcome of the proxy fight. For now, the Disney proxy fight is over.