Eight months after originally declining, Nelson Peltz has had a change of heart and now seeks a seat on Walt Disney’s board. Peltz, an activist investor, has been steadily increasing his stake in the company, which now stands at over $2.5 billion. This renewed interest comes at a time when Disney has been facing internal restructuring challenges and industry struggles due to strikes by writers and actors. As a result, Disney’s stock has dropped by more than 16%, giving Peltz and his Trian Group a stronger position in their corporate governance battle.
In December, nominations for the board will open, and it remains to be seen if Peltz will be successful in his bid this time. Despite his persistence, Disney has rejected Peltz’s attempts to join the board on multiple occasions, citing his lack of understanding of the company’s business and his lack of experience in large-cap media or tech. Disney also refuted Peltz’s claim of not disrupting the leadership order of the companies he has been involved with, pointing to the past case of GE CEO Jeff Immelt.
Disney has experienced various struggles over the past year, including layoffs, the departure of their CFO, the potential sale of struggling TV assets, a decline in streaming customers, and talks of selling assets in India. These challenges have contributed to the decline in Disney’s stock and have made Peltz’s efforts to join the board more compelling.
Overall, Peltz’s renewed interest in joining Disney’s board and his increased stake in the company have added intrigue to the situation. It remains to be seen how this governance battle will unfold and what impact it will have on Disney’s future.
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