DIS - Disney Is Already Winning the Proxy Battle
2024-01-10 11:55:00 ET
Walt Disney (NYSE: DIS) is getting ready to defend its life on several fronts. It's no longer just Nelson Peltz from Trian Fund Management throwing stones at the House of Mouse. At least three other activists are setting the stage for a proxy battle ahead of the media giant's upcoming annual shareholder meeting.
It's not a surprise that Disney is in the crosshairs. The stock has fallen well short of the market in each of the last three years, shedding more than half of its value since its early 2021 peak. The return of a popular CEO halfway through the slump hasn't helped turn the bearish sentiment around. It doesn't mean that things will get messy, even if the hourglass sand is starting to thin out heading into the springtime showdown.
Disney is generating record revenue right now, but it doesn't mean that it's at its best. Profitability is well below its fiscal 2018 peak. It's struggling to grow its flagship media networks and iconic studios businesses. Its ascending streaming business is drawn to red like a bull.
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Disney Is Already Winning the Proxy Battle