Nelson Peltz may Head Disney’s Board of Directors
2023.01.12 07:19
Nelson Peltz may Head Disney’s Board of Directors
Budrigannews.com – At Walt Disney (NYSE:), Nelson Peltz has launched an effort to get a seat on the board. Co to assist in the turnaround of a business that, in his words, is “in crisis” as a result of poor succession planning, rising streaming losses, and excessive spending on the acquisition of 21st Century Fox.
After being rejected from Disney’s board of directors, the prominent activist investor’s Trian Fund Management filed paperwork with the U.S. securities regulator on Thursday for his appointment as a director.
When asked for comment, Disney did not immediately respond.
Just a few months after Bob Iger returned from retirement to lead the home of Mickey Mouse for a second time, the conflict between Peltz and the media and entertainment giant could become a significant obstacle.
Some analysts cited Peltz’s previous success in bringing about cost reductions and change at companies that he has targeted as the reason why Disney shares rose more than 1 percent.
In a note, Rosenblatt Securities stated, “Investors would appreciate additional assurance that past problems will not repeat.”
“Peltz has a history of being a change agent at targets like P&G, Heinz, and Wendy’s (NASDAQ:) could offer an indication of that.”
Under the disclosure threshold of 5%, Trian Fund Management owns approximately $900 million worth of Disney stock, or roughly 0.5 percent.
Peltz has not provided a thorough strategy for achieving his objectives. According to people who are familiar with Disney, he has only voiced concerns without offering any potential solutions.
Due to the unpredictability surrounding the streaming business’s profitability and the unexpected return of veteran Bob Iger from retirement as chief executive, Disney has also been under pressure to reorganize its board.
