Nelson Peltz and Ike Perlmutter, both 81, failed in their attempt to gain seats on Disney’s board for the second time in two years. The shareholders rejected their demand for two seats and endorsed the growth plan laid out by Disney’s CEO, Robert A. Iger. Trian Partners, controlled by Peltz, controls about $3.5 billion in Disney stock, with the majority owned by Perlmutter. Last year, they attempted a similar board shakeup but abandoned it after Iger revealed a turnaround plan.
The battle between Disney and Trian became one of the largest and costliest in history, with both sides spending millions on offensive and defensive measures. Trian criticized Disney’s streaming strategy, stock price performance, and succession planning, while Disney portrayed Perlmutter as driven by revenge and denounced Trian as disruptive. Perlmutter’s past conflicts at Disney included disputes over movie budgets and resistance to inclusion-oriented films like “Black Panther,” leading to his ousting by Iger in 2021.
By winning the support of shareholders, Iger can move forward with his growth plan for Disney, including overhauling ESPN for streaming, investing in theme park attractions, and finding new hit movies. While prominent Disney investors publicly supported Iger, and analysts and shareholder advisory firms doubted Trian’s campaign, the contest became closer after influential shareholder advisory firm ISS partly sided with Trian. However, Vanguard and BlackRock, Disney’s two biggest shareholders, ultimately backed Iger’s slate of directors.
Mr. Iger, 73, who returned to run Disney in 2022 after his successor was fired, faced challenges from activist investors, disagreements with politicians over Disney World operations, strikes in Hollywood, and underperforming animation films. Questions remain about potential sales of assets like ABC, ESPN’s transition to streaming, and succession planning for Disney’s next CEO. Peltz indicated that Trian will continue monitoring Disney’s performance and has concerns about the current strategy, emphasizing the importance of creating sustainable long-term value for shareholders by focusing on creating great content and delighting consumers.
