Disney and billionaire Peltz battle as company denies seat to activist investor

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The cofounder of Trian Fund Management called Disney a ‘company in crisis’ and urged it to cut costs and turn a profit at its streaming business

Picture: CHESNOT/GETTY IMAGESThe Walt Disney Company and billionaire Nelson Peltz are squaring off for a boardroom battle after the home of Mickey Mouse denied the prominent activist investor a seat on its board.

Many of Disney’s problems are “self-inflicted and need to be addressed”, Trian wrote, demanding accountability of how capital is spent and the reinstatement of its dividend by fiscal 2025. Disney, which recalled Iger from retirement for the top job in November, has given Peltz access to the board and management over the last months. But it blocked his request to join the board, in part, due to his lack of expertise in media and technology, people familiar with the matter said on Wednesday.

The firm, which previously pushed for changes at Unilever, P&G and Mondelez, among others, said companies where Peltz sat on the board have seen their returns outperform the broader S&P 500 stock index during his tenure. “Whether or not Peltz wins his battle, his move seems to have made Disney’s management more aggressive in implementing improvements and fine tuning their strategy,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.For Disney this is the second time in six months that an activist shareholder has asked for changes. Third Point’s Daniel Loeb pushed the company to spin off cable sports channel ESPN, buy back shares and refresh its board.

 

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