Image Credit: Inside The MagicThe Disney Board of Directors sent out yet another personal and urgent letter to its shareholders in hopes of igniting hopes and dreams yet again at the House of Mouse, which is attempting to let them know about the progress being made thus far on expansion plans and the “promises” being kept.
Disney Board Sends Out Letter to Shareholders in Hopes of Fending off Billionaires
The Board of Directors of The Walt Disney Company (NYSE: DIS) has communicated with shareholders today, outlining the significant progress achieved and ongoing efforts towards strategic objectives set just over a year ago. With a steadfast focus on enhancing shareholder value, the Board highlights several vital achievements.
In a demonstration of financial strength, the Company has reinstated its cash dividend and subsequently augmented the dividend payment declared for July 2024 by 50%. Furthermore, Disney aims to execute $3 billion in share repurchases for FY24.
Notably, the Company has made substantial headway in cost management, as evidenced by its first-quarter earnings report, remaining on course to meet or surpass its cost reduction goal of $7.5 billion by the conclusion of FY24.
Additionally, Disney reaffirms its commitment to generating $8 billion in free cash flow and attaining profitability in its combined DTC streaming businesses by Q4 FY24. The Company continues to receive industry recognition for its creative endeavors, with numerous nominations across the television and film sectors.
The Board of Directors expresses confidence in its 12 nominees, considering them uniquely qualified to sustain momentum and foster long-term shareholder value.
Urging shareholders to safeguard their investment and the Company’s future, the Board advocates voting exclusively for Disney’s 12 nominees, rejecting nominees from the Trian Group or Blackwells.
The 2024 Annual Meeting of Shareholders is scheduled for April 3, 2024. The Disney Board does not endorse Trian Group nominees Nelson Peltz and Jay Rasulo, nor Blackwell’s nominees Craig Hatkoff, Jessica Schell, and Leah Solivan, deeming them unqualified to uphold value creation for shareholders in today’s intricate global landscape. Funny enough, Peltz hopes to “restore the magic” at Disney and the theme parks if he gets a seat on the Board of Directors.
Blackwells Capitol has proposed that The Walt Disney Company could potentially undergo a restructuring into three distinct entities. The rationale behind this proposal is rooted in the belief that the Company’s current structure is deemed “too complex for any one successor to Mr. Iger,” referencing the former CEO, Bob Iger.
For further details regarding the Annual Meeting, shareholders can refer to the Company’s proxy statement and related information at VoteDisney.com.