Bob Iger successfully defeated Nelson Peltz on Wednesday by addressing perceived weaknesses within Disney that Peltz sought to exploit. Peltz had complained about issues such as corporate succession, “woke” entertainment, streaming strategy, and profits. Iger made significant moves in recent months to quell Peltz’s rebellion, whether intentional or not, by making strategic decisions that countered Peltz’s grievances.
Iger emphasized the importance of entertaining audiences and settling entertainment in a lawsuit and feud with Florida Gov. Ron DeSantis over the state’s “Don’t Say Gay” law. Disney merged Hulu into Disney+ and oversaw a cost-cutting strategy that led to the shedding of 7,000 employees last year. Iger credited the surge in profits to cost-cutting and aimed to build streaming into a profitable growth business.
Iger focused on fortifying ESPN for the future, announcing a direct-to-consumer streaming service for the sports network by fall 2025. He also integrated ESPN’s standalone service into Disney+ the following year. Iger has emphasized the importance of getting succession right for when his contract expires in 2026, following the previous misstep with Bob Chapek. The board is conducting a succession planning process involving experienced individuals like James Gorman.
Disney launched an expensive advertising campaign to reinforce its message to its investors, treating the campaign like a political one and using popular podcasts and animated characters. Shareholders at the annual meeting overwhelmingly elected Disney’s slate of directors, rejecting Peltz and former company exec Jay Rasulo. While Peltz expressed disappointment, he also took credit for the recent actions Iger has taken to reposition the company for value creation and governance.
Iger acknowledged shareholders for their trust and confidence in his leadership and the ambitious strategy the company is implementing. It remains unclear how much of this strategy was influenced by Peltz’s proxy war, but it is likely that many of the identified issues, such as ESPN’s need for a direct-to-consumer home and the search for a successor to Iger, were already on the company’s radar. However, Peltz’s proxy war likely acted as a catalyst for change, prompting Disney to address his concerns to nullify his opposition.
In conclusion, Iger’s strategic decisions, including addressing corporate weaknesses and planning for the future, effectively neutralized Peltz’s campaign to gain influence within Disney. While it remains unclear the extent of Peltz’s influence on Disney’s recent actions, his proxy war likely served as a catalyst for change and prompted the company to address longstanding issues in a proactive manner. Disney’s shareholders ultimately supported Iger’s leadership and strategic vision for the company’s future.
