New details of court hearing in Peltz case
2023.02.09 12:48
New details of court hearing in Peltz case
By Ray Johnson
Budrigannews.com – Nelson Peltz, an activist investor, gave up trying to get a board seat at Walt Disney (NYSE:) on Thursday. Co after Chief Executive Officer Bob Iger presented plans to fix Mickey Mouse’s house, which inspired Wall Street to raise the stock price.
“The proxy war has ended. A spokesperson for Peltz’s Trian Fund Management stated on Thursday, “This is a win for all shareholders.”
CNBC first reported the decision, which came just hours after Iger announced earnings that exceeded Wall Street expectations and a corporate reorganization that addresses many of Peltz’s concerns.
During Thursday’s trading, Disney’s stock price increased by 3.6%. Since the beginning of the year, the stock has increased by nearly 30%.
Trian, who has a stake in Disney worth nearly $1 billion, had criticized the company for poor succession planning, overpaying for new assets, and skyrocketing costs.
He was attempting to persuade shareholders to vote for him on Disney’s board by arguing that, having served on eleven boards, he had the expertise to assist in the company’s turnaround. Disney objected, asserting that he lacked the expertise required to assist the media conglomerate.
Iger, who returned to the top position in November, dazzled Wall Street on Wednesday during his first earnings call since taking over for Bob Chapek, who was fired last year after the company reported a 66% drop in quarterly profit in November.
Disney is reorganizing into three divisions: an entertainment unit that encompasses film, television, and streaming, a sports-focused ESPN unit, and one that includes parks, experiences, and products, according to Iger’s response to Peltz’s concerns during his proxy battle.
