WEN - Walt Disney's Proxy Tug of War Pulls Shares to 52-Week Highs | Benzinga
The Walt Disney Co. (NYSE: DIS) shares have been surging to 52-week highs, but not necessarily due to material improvements in operations. There is a proxy war being undertaken between billionaire activist investor Nelson Peltz of the Trian Fund and the Walt Disney CEO Bob Iger. The battle boils down to control of the Board of Directors as shareholders vote at the investor meeting on April 3, 2024.
How Did The Proxy War Emerge?
Nelson Peltz's Trian Group owns over $3.5 billion of Disney stock. Peltz has spoken out against the Board of Directors whom he says is responsible for the woeful underperformance of the stock and operations. Peltz is fighting for two board seats. Peltz argues the board is not truly engaged and needs to take accountability. Trian started #RestoreTheMagic, stating, "…the root cause of underperformance is the Board's lack of focus, alignment and accountability."
The White Paper Against Disney
Peltz has noted the change in culture at the company and his distaste for the direction of the company, which has been anchored in "woke" culture that has replaced many of its iconic characters, leading to box office disasters like The Marvels and Haunted Mansion. In a nutshell, Peltz feels Disney has lost its way and traditional values, pandering to a message of diversity and inclusion.
On March 4, 2024, Trian released a 133-page white paper, "White Paper: Trian's Case for Change at Disney", detailing Peltz's plan to turn ...