The fate of the Walt Disney Company hangs in the balance as we are less than 24 hours away from the most significant proxy vote during a shareholder meeting. Disney has dealt a substantial blow to its competition, billionaires, and activist firms seeking seats on the Board of Directors.
Disney Pulls Ahead in Votes Before Shareholder Meeting: Future of the House of Mouse Clear
The Walt Disney Company is embroiled in a proxy battle with activist investor Nelson Peltz and his firm Trian Partners. Trian has nominated Peltz and former Disney finance chief Jay Rasulo for two seats on Disney’s board of directors, eliciting public opposition from Disney CEO Bob Iger. As the pivotal shareholders’ meeting draws near, the unfolding dynamics of shareholder votes come to the forefront. A fairy tale ending could be in the cards for the House of Mouse.
According to the Wall Street Journal‘s Tuesday, April 2 report, over half of Disney’s shareholders have cast their votes. Initial tallies reveal Disney’s preferred list of board members gaining traction, outpacing support for Trian’s nominees. Disney had previously presented a slate of 12 nominees for the board seats, urging shareholders to endorse these selections. Iger has vocally opposed the inclusion of Peltz and Rasulo on the board, citing potential disruption.
Prominent investors, including Lucasfilm founder George Lucas and Walt Disney’s grandchildren, have publicly endorsed Disney’s nominees. With a 4.2% stake valued at approximately $9.5 billion, BlackRock, Disney’s second-largest shareholder, has aligned with Disney in the proxy battle.
Bob Iger Keeps Getting Support Even Hours Before Proxy Vote
Mutual fund firm T. Rowe Price, holding approximately 9.3 million shares in Walt Disney, disclosed its voting stance favoring the entertainment giant’s directors, delivering a setback to activist hedge funds Trian Fund Management and Blackwells Capital’s bid for board seats.
In a statement to Reuters on Monday, T. Rowe Price confirmed its support for Maria Elena Lagomasino and Michael Froman, who are facing challenges to their board positions.
A spokesman for the mutual fund firm expressed confidence in Disney’s management, stating, “T. Rowe Price is comfortable that management has a viable plan to address the important matters facing the company.”
Despite Disney’s initial lead in the votes, the outcome remains uncertain as shareholders retain the option to cast their votes until the conclusion of the annual meeting on Wednesday.
By garnering backing from significant investors like T. Rowe Price, Disney is more likely to maintain stability and continuity within its board, enabling the company to execute its strategic plans with greater confidence and autonomy. This support may deter further challenges from activist investors, solidifying Disney’s control over its Board of Directors in the foreseeable future.
The proxy vote will continue through tomorrow’s big shareholder meeting as Disney hopes to retain control of its Board of Directors from the likes of Nelson Peltz, Trian Fund, and Blackwells Capital.