Credit: Inside The MagicDisney’s most prominent shareholder, Blackwells Capital, seems to have openly ridiculed billionaire Nelson Peltz for attempting to submit their name to the Disney Board of Directors nominees.
Shareholder Calls Out Peltz, Disney as the Battle for the Board of Directors Ramps Up
Blackwells Capital, the latest entrant in the unfolding saga involving Nelson Peltz/Trian Group and the Walt Disney Company Board of Directors, has released a preliminary proxy statement for Disney’s 2024 annual meeting. In this document, Blackwells indicates that their board nominations aim to enhance Disney’s capabilities by introducing expertise they believe is currently lacking.
A shareholder of The Walt Disney Company, Blackwells Capital submitted a preliminary proxy statement with the Securities and Exchange Commission (“SEC”) outlining its nomination of three highly qualified candidates – Jessica Schell, Craig Hatkoff, and Leah Solivan – for election to Disney’s board of directors at the upcoming 2024 Annual Meeting. This meeting presents shareholders with three competing candidate slates – Disney’s, Trian’s, and Blackwells’.
Blackwells asserts that only their highly qualified candidates can effectively support Disney’s transformation efforts, providing presently deficient expertise. They emphasize the importance of preventing the Disney Board from becoming a platform for personal grievances and irresponsible conduct. In contrast, Blackwells criticizes Disney’s preliminary proxy statement for portraying a board more focused on blocking contrary perspectives and expertise than on the Company’s transformation.
Considering the feedback from Disney shareholders since Blackwells’ initial engagement late last year, there is an increasing demand for additional support to Disney’s Board, as long as it brings additive expertise and constructive collaboration with existing members. Due to Disney’s myriad challenges and decisions during this transformative period, Blackwells contends that additional expertise should be embraced rather than dismissed.
Founded in 2016 by Jason Aintabi, its Chief Investment Officer, Blackwells Capital has a track record of investing in public securities and working with management and boards to unlock value for stakeholders. The firm’s principals have global investment experience for leading public and private equity firms, with roles in media, energy, technology, insurance, and real estate enterprises.
Jason Aintabi, Chief Investment Officer of Blackwells, highlights Disney’s preliminary proxy statement, revealing Nelson Peltz’s numerous requests for a board seat on behalf of Trian in the past year and a half. Aintabi criticizes Peltz for not contributing any strategic ideas beneficial to shareholders. Aintabi refutes Peltz’s recent claim that he wants someone without media experience on the Disney Board, emphasizing Disney’s status as a significant media company. Blackwells’ nominee, Jessica Schell, is touted as having more media experience than all Trian nominees combined, providing a critical perspective currently absent from the Disney Board.
Blackwells extends an invitation to Ike Perlmutter, representing the majority of Trian’s Disney shares, to engage in discussions about their investment thesis for Disney and meet with their nominees. The nominees, including Schell, offer expertise in media and content, technology, real estate, and innovative fields such as AI, VR, and AR. Blackwells urges the Disney Board to promptly engage with their nominees to facilitate constructive collaboration and the free exchange of ideas.
Additionally, Blackwells expresses disappointment in Disney’s information-sharing agreement with ValueAct, emphasizing that sharing information with one shareholder and withholding it from others could negatively impact the share price. They demand that Disney make all information shared with ValueAct public under the ‘information sharing agreement.’
Stay tuned to Inside The Magic for more news regarding the Walt Disney Company Board of Directors nominations, as the seats are chosen in the coming months.