2024-01-18 12:27:16 ET
Walt Disney Co (NYSE: DIS) is trending up this morning after Nelson Peltz revealed performance targets he’ll pursue at the entertainment conglomerate if he’s elected to its board.
Peltz will push for Netflix-like margins at Disney
Trian Fund Management – an activist investment firm he founded in 2005 formally nominated Peltz and Jay Rasulo (former finance chief of Disney) to Disney’s board on Thursday.
What they promised in a proxy filing today include “finally completing a successful CEO succession” and “aligning management pay with performance”.
Peltz also said this morning that he’d target “Netflix-like margins” of up to 20% at the New York listed firm by 2027.
Wall Street currently has a consensus “overweight” rating on shares of the Walt Disney Co that are down about 20% versus their 52-week high.
Watch here: https://www.youtube.com/embed/EjSbJgww-DU?feature=oembedPeltz lashes out at the current board of Disney
Disney has so far pushed against Peltz’s attempt to join its board as he lacks media experience. But on CNBC’s “ Squawk Box ”, the activist investor said in retaliation today:
They said I have no media experience. I don’t claim to have any. But I will tell you, I don’t think they have much media experience.
Nelson Peltz – along with Jay Rasulo will also target high-single digit growth in operating income at the company’s theme parks if elected to its board, as per the filing on Thursday.
People are ignorant. Disney Plus lost $1.5 million dollars this year. ¿¿ In contrast, Netflix was created in 1997. Netflix didn't turn a profit until 2003. That is 6 years. Disney Plus started in 2019 with a 10 year goal to turn a profit. ¿¿¿¿??? https://t.co/UlX8Yoh2mG
— RobertoCNievesArt (@IllustratorRcn) November 22, 2022
Earlier in January, ValueAct and Blackwells announced plans of siding with the current management of Disney in its proxy fight with Trian Partners ( find out more ). The media giant is expected to earn $1.0 a share in its current financial quarter versus 99 cents per share a year ago.
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